Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $73,000 per year. A clever industrial engineer found that by spending $17,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $58,000 next year and $50,000 in years 2 through 5. Using an interest rate of 9% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined to be $

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
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Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $73,000 per year. A clever
industrial engineer found that by spending $17,000 now to reconfigure the production line and reprogram two of the robotic arms,
the cost will go down to $58,000 next year and $50,000 in years 2 through 5. Using an interest rate of 9% per year, determine the
present worth of the savings due to the reconfiguration.
The present worth of the savings is determined to be $
Transcribed Image Text:T Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $73,000 per year. A clever industrial engineer found that by spending $17,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $58,000 next year and $50,000 in years 2 through 5. Using an interest rate of 9% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined to be $
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