Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 57

Johnson Thermal Products used austenitic nickel chromium alloys to manufacture resistance heating wire. The company is considering a new annealing drawing process to reduce costs. If the new process will cost $3.7 million now, how much must be saved each year to recover the investment in 5 years if the company's MARR is a real 12% per year and the inflation rate is 3% per year