Ips corp will upgrade its package-labeling machinery it, Business Economics

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Ips corp will upgrade its package-labeling machinery it

IPS Corp. will upgrade its package-labeling machinery. It costs $150,000 to buy the machinery and have it installed. Operation and maintenance costs, which are $1500 per year for the first three years, increase by 500 per year for the machine's 10-year life. The machinery has a salvage value of 5% of its initial cost. Interest is 10%. What is the future worth cost of the machinery?

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Business Economics: Ips corp will upgrade its package-labeling machinery it

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