Johnson electronic systems can reduce product recalls by, Microeconomics

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Johnson electronic systems can reduce product recalls by

Johnson Electronic Systems can reduce product recalls by 10% if it purchases new laser-based sensing equipment. If the cost of the new equip- ment is $250,000 now, how much can the com- pany afford to spend in 2 years (instead of now) if it uses a minimum attractive rate of return of 12% per year compounded monthly?

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