Phelps-dodge plans to expand capacity by purchasing, Business Economics

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Phelps-dodge plans to expand capacity by purchasing

Phelps-Dodge plans to expand capacity by purchasing equipment that will provide additional smelting capacity. The cost of the initial investment is expected to be $16 million. The company expects revenue to increase by $3.8 million per year after the expansion. If the company’s MARR is 18% per year, identify the engineering economy symbols involved and their value.

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Business Economics: Phelps-dodge plans to expand capacity by purchasing

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