Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin

Exercise 3

Five years ago, Diamond Electronics, a division of De Beers, paid $,150,000 for new diamond cut­ting tools.At that time, the company estimated an added revenue need of $00,000 to recover the in­vestment at 10% per year.If there is an estimated 8 more years of service with a salvage value of $00,000, compare the revenue needed over the entire life with that estimated 5 years ago.