DuraTech Manufacturing is evaluating a process improvement project The estimated receipts and disbursements associated with the project are shown below MARR is 11 year End of Year Receipts Disbursements 0 $0 $4,900 1 $200 $180 2 $2,100 $350 3 $3,400 $500 4 $3,200 $1,000 5 $1,600 $1,510 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) Should DuraTech implement the proposed process improvement

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Question: DuraTech Manufacturing is evaluating a process improvement project. The estimated receipts and disbursements associated with the project are shown below. MARR is 11%/year. End of

DuraTech Manufacturing is evaluating a process improvement project. The estimated receipts and disbursements associated with the project are shown below. MARR is 11%/year.

End of Year	Receipts	Disbursements
0	$0	$4,900
1	$200	$180
2	$2,100	$350
3	$3,400	$500
4	$3,200	$1,000
5	$1,600	$1,510

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) Should DuraTech implement the proposed process improvement?

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