A company that sells high-purity laboratory chemicals is considering investing in new equipment that will reduce cardboard costs by better matching the size of the products to be shipped to the size of the shipping container. If the new equipment will cost $220,000 to purchase and install, how much

Question

A company that sells high-purity laboratory chemicals
is considering investing in new equipmentthat will reduce cardboard costs by better matching
the size of the products to be shipped to the
size of the shipping container. If the new equipment
will cost $220,000 to purchase and install,
how much must the company save each year for
3 years in order to justify the investment, if the
interest rate is 10% per year?

Accepted Answer

[latex]A = 220,000(A/P,10[/latex]%[latex],3)[/latex]

[latex]\quad = 220,000(0.40211)[/latex]

[latex]\quad = [/latex]$[latex]88,464[/latex]

Question : A company that sells high-purity laboratory chemicals is con...