In: Economics
FX, Inc. is a volume manufacturer of high technology automotive mirrors (including cell link and voice activation). FX is looking to expand its operations to add a second product. The equipment investment cost for this new operation is $125,000. The project falls under a 7-year MACRS class life and the company estimates that the salvage value will be $50,000 at the end of the 5-year project. The annual revenue for the new line is $100,000. The annual manufacturing costs are listed below:
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