Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An emission reduction filter will cost $75,000 and will have an expected life of 5 years. Carlisle's MARR is 10 percent/year.

a. What is the present worth of this investment?

b. What is the decision rule for judging the attractiveness of investments based on present worth?

c. Is the filter economically justified?

Answer rating: 100% (QA)

a If the Carlisles board of directors has decided that si... View the full answer