Tacozza Electric, which manufactures brush dc servomotors, budgeted $75,000 per year to pay for certain components over

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Tacozza Electric, which manufactures brush dc servomotors, budgeted $75,000 per year to pay for certain components over the next 5 years. If the company expects to spend $15,000 in year 1, how much of a uniform (arithmetic) increase each year is the company expecting in the cost of this part? Assume the company uses an interest rate of 10% per year.

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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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