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Business, 26.06.2019 15:20 janelly66

The material could be recycled if the company were to buy a $60,000 hydraulic press baler and spend $30,000 a year for labor to operate the baler. the baler has an estimated useful life of 30 years and no salvage value. strapping material would cost $2,000 per year for the estimated 500 bales a year that would be produced. a wastepaper company will pay johnson $23 per bale if it buys the press. use an annual cash flow analysis and an interest rate of 8% to recommend whether it is economical to install and operate the baler. what price for the bales of wastepaper would make johnson indifferent between buying or not buying the baler?

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