Which the project is economically practical

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Reference no: EM132024466

A company is considering to produce a new product with the following data :

- Initial investment = $1,115,000

- Annual maintenance = $ 75,000

- Annual operation cost = $ 12 per unit

- Selling price = $ 60 per unit

- MARR = 12%

- Project life = 8 years

By drawing the cash-flow , what is annual production level for which the project is economically practical ?

Reference no: EM132024466

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