What is minimum yearly production rate to make invesment

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A manufacturing company is considering a capacity expansion investment at the cost of $250,000. The expansion would enable the company to produce up to 100,000 more parts and the useful life of the additional capacity is 7 years. Each pare would generate $2 net profit and annual operation and maintenance costs are estimated at $25,000 per year. If the MARR of the firm is 10%, what is the minimum yearly production rate to make this investment justifiable?

Reference no: EM13200968

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