Question: The estimated annual cost saving produced by the mechanical drying equipment is subject to errors in engineering estimates of as much as 1 0 %

The estimated annual cost saving produced by the mechanical drying equipment is subject to errors in engineering estimates of as much as 10%. Since this issue would inevitably arise in her presentation to Papercos management, Ms. Rogers wondered how small the annual cost savings could become before the project would be uneconomic for Paperco.

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