The owners of a vegetable processing plant can buy a new conveyor system for $85 000. They

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The owners of a vegetable processing plant can buy a new conveyor system for $85 000. They estimate they can save $17 000 per year on labour and maintenance costs. They can purchase the same conveyor system with an automatic loader for $114 000, and estimate they can save $22 000 per year with that system. If the owners expect both systems to last 10 years and they require at least 14% return per year, should they buy the system with the automatic loader?
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Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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