A new manufacturing plant costs $5,150,000 to build. Operating and maintenance costs are estimated to...
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Accounting
A new manufacturing plant costs $5,150,000 to build. Operating and maintenance costs are estimated to be $41,000 per year, and a salvage value of 25% of the initial cost is expected. The units the plant produces are sold for $35 each. Sales and production are designed to run 365 days per year. The planning horizon is 10 years. Find the break-even value for the number of units sold per day for each of the following values of MARR:
a) 5%
Break-even value:
b) 10%
Break-even value:
c) 15%
Break-even value:
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