How many years must the system last invested

Reference no: EM13206925

An expenditure of $20,000 is made to modify a material-handling system in a small job shop. This modification will result in first-year savings of $2,000, a second-year savings of $4,000, and a savings of $5,000 per year thereafter. How many years must the system last if an 18% return on investment is required? The system is tailor made for this job hop and has no market (salvage) value at any time.

Reference no: EM13206925

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