Required machinery for widget manufacturing

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Reference no: EM131809536

How many widgets must be needed by Acme Manufacturing per year to justify buying the required machinery for widget manufacturing for $10K? The manufacturing cost is $.26 each, and they can be purchased for $.35 each. The machinery must be overhauled at the end of every third year for $3000. Its salvage value after 12 years is zero. The firm uses an interest rate of 12%.

Reference no: EM131809536

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