Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 61

Red Valve Co. of Carnegie, Pennsylvania, makes a control pinch valve that provides accurate, repeatable control of abrasive and corrosive slurries, outlasting gate, plug, ball, and even satellite coated valves. How much can the company afford to spend now on new equipment in lieu of spending $75,000 four years from now The company's rate of return is 12% per year.