The International Parcel Service has installed a new radio frequency identification system to help reduce the number

Question:

The International Parcel Service has installed a new radio frequency identification system to help reduce the number of packages that are incorrectly delivered. The capital investment in the system is $65,000, and the projected annual savings are tabled below. The system's market value at the EOY five is negligible, and the is 18% per year.
End of Year Savings
1 ...................................... $25,000
2 ...................................... 30,000
3 ...................................... 30,000
4 ...................................... 40,000
5 ...................................... 46,000
a. What is the FW of this investment?
b. What is the IRR of the system?
c. What is the discounted for this investment?
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other... Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...