Considering upgrading a piece of equipment

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A manufacturing is considering upgrading a piece of equipment. If a certain upgrade helps reduce operating costs by $750 per hour of use, and the upgraded equipment will be used on average 8 hours per day, what is the expected annual savings of upgrading the equipment over its remaining life of 7 years? What other factors do you need to take into consideration to justify the decision to upgrade the equipment? Assume a 5 day work week.

Reference no: EM13735644

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