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What is the annual equivalent cost of this project

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Reference no: EM132781027

Problem - Chipotle is looking to develop a new pineapple salsa. It will require an initial investment of $100,000 for research and development. Then in Year 1 there will be a $25,000 marketing campaign. Additionally, Chipotle will have to pay $50,000 for ingredients each year starting with Year 1. What is the annual equivalent cost of this project if the MARR is 12% over the 6 year life?

Reference no: EM132781027

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