Q3)The IPS company has installed a system to help reduce the number of defective products. The capital investment in the system is $X1, and the projected annual savings are tabled below. The systems market value at the EOY five is negligible, and the MARR is x2% per year. EOY Savings 1 25,000 2 30,000 3 35,000 4 40,000 5 46,000 a. What is the FW of this investment? Based on economical decision rule, is this a good investment? 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?

X1=$85000

X2=20%

Q4)A power plant is being considered in the dead sea location. For an initial investment of $X1 million, annual net revenues are estimated to be $15 million in years 15 and $20 million in years 620. Assume no residual market value for the plant. a. What is the simple payback period for the plant? b. What is the discounted payback period when the MARR is x2% per year? c. Using an equivalency technique (FW, PW, or AW), MARR is x2% per year, would you recommend investing in this project?

X1=$120

X2=4%