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Business, 18.12.2019 17:31 sarahsompayrac

You company manufactures circuit boards and other electronic parts for various commercial products. due to increase in demand for your company’s products, there is a need for an upgrade in the production line in order to increase the capacity of manufacturing operation. this upgrade will increase the annual revenue by $280,000 per year (in year zero dollars) and the annual expense by $150,000 per year. at the end of six years, the estimated market value of equipment in the production line, in today’s dollar, is $38,000. what should be the cost of upgrading the production line in order for this project to be feasible? the inflation rate is 3.5% and the market (inflation-adjusted) interest rate is 10%.

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