Eliminate waste in the potato-peeling process

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A large food-processing corporation is considering using laser technology to speed up and eliminate waste in the potato-peeling process. To implement the system, the company anticipates needing to purchase the industrial-strength lasers. The system will save $1,000,000 per year in labor and materials. However, it will incur an additional operating and maintenance cost of $200,000 per year. The system is expected to have a 10-year service life and a salvage value of about $100,000. If the company's MARR is 15%, Determine the maximum price that the company should pay to purchase the industrialstrength lasers so that project is profitable.

Reference no: EM131194385

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