Question: Please help me with this Economics engineering problem The Board of Work lumber mill is considering a vision system to spot and remove defects in

"Please help me with this Economics engineering problem"

The Board of Work lumber mill is considering a vision system to spot and remove defects in incoming wood. Purchase and installation of the system costs $70,000. Annual savings due to improved quality and material utilization are $55,000 per year. The system will be MACRS depreciated using a 7 year recovery period. Annual maintenance expenses will be $35,000. The system will be scrapped in year 10 for $10,000. The effective tax rate is 40% per year and the MARR is 22%. Use rate-of-return analysis to determine if the company should invest in the laser system.

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