Question: Wayward Airfreight is considering a new automatic parcel sorter. Each choice has a 7-year life. Show your formulas for the calculations. ShipR SortOF USortM First

Wayward Airfreight is considering a new automatic parcel sorter. Each choice has a 7-year life. Show your formulas for the calculations.

ShipR

SortOF

USortM

First Cost

$184,000

$235,000

$180,000

Salvage Value

$38,300

$44,000

$14,400

Annual Benefit

$75,300

$89,000

$68,000

Yearly O & M Cost

$21,000

$21,000

$12,000

a. Compute NPW of each alternative.

b. Generate an NPW graph with NPW on the Y-axis and interest rate on the X-axis with all alternatives on one graph.

c. Generate an EUAW graph.

d. Construct a choice table for interest rates from 0% - 100%.

e. Using a MARR of 15% and a rate of return analysis, which alternative, if any, should be selected?

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