Company is considering the introduction of a new product

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Your company is considering the introduction of a new product line. The initial investment required for this project is $500,000, and annual maintenance costs are anticipated to be $35,000.
Annual operating costs will be directly proportional to the level of production at $7.50 per unit, and each
unit of product can be sold for $50. If the MARR is 15% and the project has a life of ?ve years, what is the
minimum annual production level for which this project is economically viable?

Reference no: EM1387613

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