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These two question are from contemporary engineering exonomics 4th.

5.8 Cable television companies and their equipment suppliers are on the verge of Digital Compression installing new technology that will pack many more channels into cable networks, thereby creating a potential programming revolution with implications for broadcasters, telephone companies, and the consumer electronics industry. First year Digital compression uses computer techniques to squeeze 3 to 10 programs into a single channel. Acable system fully using digital compression technology would be Annual savings in satellite time able to offer well over 100 channels, compared with about 35 for the average cable Incremental annual revenues due television system now used. If the new technology is combined with the increased to new subscriptions use of optical fibers, it might be possible to offer as many as 300 channels Incremental annual expenses A cable company is considering installing this new technology to increas Incremental annual income taxes subscription sales and save on satellite time. The company estimates that the Economic service life installation will take place over 2 years. The system is expected to have an 8-year Net salvage value service life and produce the following savings and expenditures: Note that the project has a 2-year investment period, followed by an 8-year service life (a total 10-year life for the projec). This implies that the first annual savings will occur at the end of year 3 and the last will occur at the end of year 10. If the firm's MARR is 15%, use the NPW method to justify the economic worth of the project $1,500,000 $1,200,000