A maker of micromechanical systems can reduce product, Financial Management

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A maker of micromechanical systems can reduce product

A maker of micromechanical systems can reduce product recalls by 10% with the installation of new packaging equipment. If the cost of the new equipment is expected to be $40,000, 7 years from now, how much could the company afford to spend now (instead of 7 years from now) at a minimum attractive rate of return of 9% per year?

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