05.01-PR002 Video Solution DuraTech Manufacturing is evaluating a process improvement project. The estimated receipts and disbursements associated with the project are shown below. MARR is 6%/year. End of Year Receipts Disbursements 0 $0 $5,000 1 $0 $200 2 $2,000 $300 3 $4,000 $600 4 $3,000 $1,000 5 $1,600 $1,500 What is the annual worth of this investment? AW = $198.93 What is the decision rule for judging the attractiveness of investments based on annual worth? DECISION RULE IF AW >= 0, ACCEPT; OTHERWISE, REJECT Should DuraTech implement the proposed process improvement? DURATECH SHOULD IMPLEMENT THE PROCESS IMPROVEMENT