New machine were added with the properties

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Reference no: EM131535299

Maximum price to justify. What would be the maximum initial price that would be justified if a new machine were added with the following properties? It would cost 1500 dollars a year to maintain in the first year and each year after that the maintenance cost would increase by 300 dollars a year. It would save 7000 a year in raw materials. The planning horizon is 12 years and the interest rate is 6%.

Reference no: EM131535299

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