Question: Written solution please (no excel) yup Styles Q8) The IPS company has installed a system to help reduce the number of defective products. The capital

 Written solution please (no excel) yup Styles Q8) The IPS company

Written solution please (no excel)

yup Styles Q8) The IPS company has installed a system to help reduce the number of defective products. The capital investment in the system is $95000, and the projected annual savings are tabled below. The system's market value at the EOY five is negligible, and the MARR is 20% 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? OWN

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