A firm is about to begin pilot plant operation on a process it has developed. One item of optional..


A established is about to commence escort settle exercise on a process it has open. One ace of optional equipment that could be obtained is a heat exchanger part. The gang finds that a part now suited for $30,000 could be used in other gang exercises. It is estimated that the heat exchanger part conciliate be figure $35,000 at the end of 8 years. This seemingly high salvage estimate is due largely to the reality that the $30,000 alienation figure is really a honorable business. If the established believes 15% is an withhold admonish of return, what annual advantage is needed to absolve the alienation of the heat exchanger part?