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

Exercise 7

A maker of microelectromechanical systems can reduce product recalls by 10% if it purchases new packaging equipment.If the cost of the new equipment is expected to be $0,000 four years from now, how much could the company afford to spend now (instead of 4 years from now) if it uses a minimum attractive rate of return of 12% per year?