Manufacturing line for packaging materials

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Reference no: EM131807288

A firm has installed a manufacturing line for packaging materials. The firm plans to produce 50 tons of packing peanuts at $5000 per ton annually for 5 years, and then 80 tons of packing peanuts per year at $5500 per ton for the next 5 years. What is the present worth of the expected income? The firm's minimum attractive rate of return is 18% per year.? Contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology

Reference no: EM131807288

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