Question: 2. Ch: 4 After installing a new machine tools costing $140,00 there is significant scrap reduction in over a period of 6 months. The S

 2. Ch: 4 After installing a new machine tools costing $140,00

2. Ch: 4 After installing a new machine tools costing $140,00 there is significant scrap reduction in over a period of 6 months. The S value of the scrap savings for consecutive 6 months are: 20K 22K 22K 26K 28K 30K Assume the interest is 12% per year compound monthly. Use arithmetic gradient formula A) Is it worth doing this investment? B) What is maximum nominal interest rate the firm can take to do the investment

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