Question: A newly implemented technology in a manufacturing plant pays zero revenue in the first 3 years, and $1,000 revenue in the fourth year; this amount

  1. A newly implemented technology in a manufacturing plant pays zero revenue in the first 3 years, and $1,000 revenue in the fourth year; this amount increases by $500 annually (i.e., every year by an additional $500) for the following 6 years. If the company uses MARR of 5.5% per year, what is the present value of these cash flows? What is the annual equivalent of the revenues over the 7 year period when the project makes money?

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