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MMLU-Pro / 660 / A factory is considering the purchase of a machine, for …

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A factory is considering the purchase of a machine, for 600,000,thatisexpectedtoreduceproductioncostsby600,000, that is expected to reduce production costs by 200,000 each year. The desired rate of return on this investment is 20%. What is the minimum life the machine must have to assure this rate of return?
Plain-text mathematical notation (without MathML)
A factory is considering the purchase of a machine, for 600,000,thatisexpectedtoreduceproductioncostsby200,000 each year. The desired rate of return on this investment is 20%. What is the minimum life the machine must have to assure this rate of return?
Original LaTeX notation
A factory is considering the purchase of a machine, for $600,000, that is expected to reduce production costs by $200,000 each year. The desired rate of return on this investment is 20%. What is the minimum life the machine must have to assure this rate of return?

category

business

options

  1. between 4 and 5 years
  2. more than 7 years
  3. between 5 and 6 years
  4. slightly greater than 5 years
  5. exactly 6 years
  6. less than 4 years
  7. exactly 3 years
  8. exactly 5 years
  9. more than 6 years
  10. less than 5 years

src

stemez-Business

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