Johnson Thermal Products used austenitic nickel-chromium alloys to manufacture resistance heating wire. The company is considering a

Question:

Johnson Thermal Products used austenitic nickel-chromium alloys to manufacture resistance heating wire. The company is considering a new annealing-drawing process to reduce costs. If the new process will cost $3.7 million now, how much must be saved each year to recover the investment in 5 years if the company's is a real 12% per year and the inflation rate is 3% per year?

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...