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How long must the new lining last to be more economical

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Question: The lining of a plating tank must be replaced every 3 years at the cost of approximately $2000. A new lining material has been developed that is more resistant to the corrosive effects of the plating liquid and will cost approximately $4000. If the required rate of return is 20% and annual property taxes and insurance amount to about 4% of the initial investment, how long must the new lining last to be more economical than the present one?

Reference no: EM131683162

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