Chrysler is considering a cost reduction program. The suppliers must reduce the cost of the components that they furnish to Chrysler by 5% each year. The total amount of savings would increase each year.) The initial costs: Program Setup Feasibility Study (completed six months ago) 1,300,000 Supplier Training $12,500,000 8,500,000 Chrysler is currently paying a total of $90,000,000 per year for components purchased from the vendors who will be involved in this program. (Assume that, if the program is not approved the annual cost of purchased components will remain constant at $90,000,000 per year.) The program has been designed as a five-year initiative, and Chrysler's MARR for such projects is 15% m There will be annual operating expenses associated with the program for further training of vendors, updating internal documentation, and so on. Given the projected savings in purchased components, what would be the maximum annual operating expense for this program such that it is marginally justified? Assume that the EOY 1 cost for purchased components is $90,000,000 Click the icon to view the interest and annuity table for discrete c More Info The PW if the program is approved is $21 million. (Round to one dec Discrete Compounding: i-15% Single Payment Uniform Series Compound Amount Factor To Find F Capital Recovery Factor To Find A Given P Compound Amount sent Factor Worth Factor Worth Factor Factor To Find P To Find P To Find F Given P To Find A Given F 1.0000 0.4651 1.0000 0.8696 0.7561 0.6575 0.5718 4972 0.4323 0.3759 0.8696 1.6257 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 5.2337 5.4206 5.5831 5724 5.8474 5.9542 1.3225 3.4725 4.9934 6.7424 8.7537 11.0668 13.7268 16.7858 20.3037 24.3493 29.0017 34.3519 40.5047 47.5804 55.7175 65.0751 75.8364 88.2118 102.4436 0.4380 0.3503 0.2983 0.2642 0.2404 0.2229 0.2096 0.1993 0.1911 0.2003 0.1483 4 2.0114 2.3131 3.0590 3.5179 4.0456 4.6524 5.3503 0.0904 0.0729 0.0596 0.0493 0.0411 0.0345 0.2843 10 0.1869 0.1625 0.1413 0.1229 0.1069 0.0929 0.0808 0.0703 0.0611 12 13 0.0247 0.0210 7.0757 8.1371 9.3576 10.7613 12.3755 14.2318 16.3665 15 16 17 0.1679 0.1654 0.1632 0.1613 Enter your answer in the answer box and then click Check Answe 6.1280 6.1982 6.2593 parts remaining 20