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In: Economics

A new manufacturing plant costs $5,150,000 to build. Operating and maintenance costs are estimated to be...

A new manufacturing plant costs $5,150,000 to build. Operating and maintenance costs are estimated to be $43,000 per year, and a salvage value of 25% of the initial cost is expected. The units the plant produces are sold for $35 each. Sales and production are designed to run 365 days per year. The planning horizon is 10 years. Find the break-even value for the number of units sold per day for each of the following values of MARR:

A/ 5%

Break-even value:   units

Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit. The tolerance is ±1.

B/ 10%

Break-even value:   units

Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit. The tolerance is ±1.

C/ 15%

Break-even value:   units

Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit. The tolerance is ±1.

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