Posted by Ating on Wednesday, February 9, 2011 at 10:19pm.
Sensotech Inc., a maker of microelectromechanical systems, believes it can reduce product recall by 10% if it purchases new software for detecting faulty parts. the cost of the new software is 225000.
1 how much would the company have to save each year for 4 years to recover its investment if it uses a minimum attractive rate of return of 15% per year?
2What was the cost of recalls per year before the software was purchased if the company did exactlyy recover its investment in 4 years from the 10% reduction?
Help please

Engineering Economics  Anonymous, Friday, April 6, 2012 at 12:16pm
sold its prescription drug business to WarnerChilcott, Ltd. for $3.1 billion. If income from product sales is $2 billion per year and net profit is 20% of sales, what rate of return will the company make over a 10year planning horizon?
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