Question: 2. Ch: 4 After installing a new machine tools costing $120,00 there is significant scrap reduction in over a period of 6 months. The $

2. Ch: 4 After installing a new machine tools costing $120,00

2. Ch: 4 After installing a new machine tools costing $120,00 there is significant scrap reduction in over a period of 6 months. The $ value of the scrap savings for consecutive 6 months are: 20K 226 22K 26K 28K 32K Assume the interest is 12% per year compound monthly. Use arithmetic gradient formula A) Is it worth doing this investment? Justify. B) What is maximum nominal interest rate the firm can take to do the investment

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