This year's operating costs were down $100,000, a decrease directly attributable to the $520,000 investment in the
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This year's operating costs were down $100,000, a decrease directly attributable to the $520,000 investment in the automated materials handling system put in place at the beginning of the year. If this level of annual savings continues for five more years, resulting in six total years of annual savings, what compounded annual rate of return will that represent? If these annual savings continue for nine more years, what compounded annual rate of return will that represent? (You may ignore income taxes.)
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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