A company can purchase a new kiln for firing ceramics for $ 1 8 , 0 0
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Question:
A company can purchase a new kiln for firing
ceramics for $ now. This kiln will have a life
of years and a salvage value of $ It costs the
company cents to fire a ceramic in the kiln.
This company can also contract out the making of
the ceramics, and that cost will be $ for each
ceramic.
The interest rate is per year.
How many ceramics must this company make
per year for these two options to be
equivalent?
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