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Your HVAC system initially had many reliability and maintainability issues. Last year you invested $3 million in redesign and subsequently saw a sales increase of 100,000 units that you believe were based solely on quality improvements. If the new HVAC unit sellsfor $1100 and you expect this unit to be in your sales portfolio for 2 more years, was it worth the investment? Use an MARR of 15% and assume you have a 50% profit in each system.
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