A large food-processing corporation is considering using new technology to speed up and eliminate waste in the
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A large food-processing corporation is considering using new technology to speed up and eliminate waste in the potato-peeling process. The system will save the company $1,423,000 per year in labor and materials. However it will require an additional annual operating and maintenance (O&M) cost of $526,000. Annual income taxes will also increase by $217,000. The system is expected to have a 11 years service life and will have a salvage value of $205,000. If the company's MARR is 14.8%, what is the maximum amount that should be spent on purchasing the new technology?"
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