A large food-processing corporation is considering using laser technology to speed up and eliminate waste in the potato-peeling process. To implement the system, the company anticipates needing $2.5 million to purchase the industrial-strength lasers. The systems will save $1,200,000 per year in labor and materials. However, it will require an additional operating and maintenance cost of $275,000. Annual income taxes will also increase by $145,000. The system is expected to have a 10-year service life and will have a salvage value of about $225,000. If the companys MARR is 10%, justify the economics of the project based on:

(a) PE method

(b) FE method

(c) AE method