Question: Problem Statement A company invested $200,000 in a new process expecting the following schedule returns on their investment. $10,000 at the end of year 1

 Problem Statement A company invested $200,000 in a new process expecting

Problem Statement A company invested $200,000 in a new process expecting the following schedule returns on their investment. $10,000 at the end of year 1 and increasing by $5000 starting year 2 through year through 15. Maintenance costs are estimated at $1000 per year for the first 10 years, and $500.00 per year for years 11 through 15. The salvage value of the process is $10,000. a) Draw a cash flow for this project. b) If the interest rate per year is 8%, what is the present worth of this investment? Is it a good investment? c) If the interest rate per year is 8%, compounded every six month, formulate (Do NOT SOLVE) the annual worth (AWI) of this project. d) If the company could save $50,000 when purchasing the process but will incuran additional $2700 per year for maintenance, is it a good proposal

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