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Business, 16.10.2021 18:50 jboii11

A manufacturing company is evaluating two options for new equipment to introduce a new product to its suite of goods. The details for each option are provided below: Option 1 $75,000 for equipment with useful life of 7 years and no salvage value. Maintenance costs are expected to be $2,500 per year and increase by 3% in Year 6 and remain at that rate. Materials in Year 1 are estimated to be $20,000 but remain constant at $10,000 per year for the remaining years. Labor is estimated to start at $50,000 in Year 1, increasing by 3% each year after. Revenues are estimated to be:

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