What is the minimum required annual savings in labor

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Reference no: EM131972262

A machine costing $35.000 to buy and $4,000 per year to operate will save mainly labor expenses in packaging over six years.

The anticipated salvage value of the machine at the end of the six years is S5.000.

To receive a 12% return on investment (rate of return), what is the minimum required annual savings in labor from this machine?

Reference no: EM131972262

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