A drug store is looking into the possibility of installing a 24/7 automated prescription refill system to

Question:

A drug store is looking into the possibility of installing a "24/7" automated prescription refill system to increase its projected revenues by $20,000 per year over the next five years. Annual expenses to maintain the system are expected to be $5,000. The system will have no market value at the end of its five-year life, and it will be depreciated by the SL method. The store's effective income tax rate is 40%, and the after-tax is 12% per year. What is the maximum amount that is justified for the purchase of this prescription refill system?
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...