Question (2): The IPS company has installed a system to help reduce the number of defective...

 

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Question (2): The IPS company has installed a system to help reduce the number of defective products. The capital investment in the system is $85,000, and the projected annual savings are tabled below. The system's market value at the EOY five is negligible, and the MARR is 15% per year. EOY 1 2 3 4 45 Savings 25,000 30,000 35,000 40,000 46,000 a. What is the FW of this investment? Based on economical decision rule, is this a good investment? 5 b. What is the IRR of the system? Based on economical decision rule, is this a good investment? c. What is the discounted payback period for this investment? Question (2): The IPS company has installed a system to help reduce the number of defective products. The capital investment in the system is $85,000, and the projected annual savings are tabled below. The system's market value at the EOY five is negligible, and the MARR is 15% per year. EOY 1 2 3 4 45 Savings 25,000 30,000 35,000 40,000 46,000 a. What is the FW of this investment? Based on economical decision rule, is this a good investment? 5 b. What is the IRR of the system? Based on economical decision rule, is this a good investment? c. What is the discounted payback period for this investment?

Answer rating: 100% (QA)

a b c X 85000 X 15 015 ful of investment 85000 1... View the full answer