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Question: A pharmaceutic engineer started a small-scale drug processing company for the production of Aloe Vera extract with an initial investment of $750,000. The company only broke even (no profit) the first 3 years of its start-up, but years 4 through 8, it made a profit of $1,075,000 per year and after which the profit was observed to increase by a constant amount of $135,000 for the next four years. It cost the company an aggregate sum of $620,000 per year to maintain and run the company. MARR = 10%
a) Determine the engineering economy symbols and their corresponding value
b) Draw the cash flow diagram
c) Evaluate the present worth of the drug processing company at year 0
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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