A company needs a modern material handling system for facilitating access to and from a busy warehouse. If the companys management use a MARR (given in the below table) in their economic decisions.

The company found two systems, the first system is a second-hand and the second system is a new system. The economic consequences of both systems are given in the below table. answer the following questions In Excel:

1: For the second-hand system alternative:

a) Draw the cash flow for the economic consequences

b) Find the present worth, annual worth, future worth

c) Find the internal rate of return

d) Is the system economically justified (explain why)

e) Calculate the simple and discounted payback periods

f) What are the annual savings required for the system to breakeven

Second-hand system:-

Investment cost 471500$

Annual expenses 154800$

Annual savings 248500$

Useful life 9 years

Salvage value 134700$

MARR 12.2% per year

excel functions provided