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A product can be manufactured in a fully automated manufacturing facility with the initial investment of $700,000. The labor and material for this case is $20 per product. We can also manufacture this part in a less expensive facility with the initial investment of $300,000. The cost of labor and material per product will be $ 25 per product. The life for both facilities is 10 years, with no salvage value. Determine the point of indifference between these two alternatives. MARR= 10% per year
This document contains various important questions and their appropriate answers in the subject field of Economics.
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