Repeat Exercise 8.6 if the MARR for the company is \(5.5 \%\) in the first 4 years and increases to \(6 \%\) starting in year 5.

Exercise 8.6

A newly implemented technology in a manufacturing plant pays zero revenue in the first 2 years but \(\$ 1,000\) revenue in the third and fourth years; this amount increases by \(\$ 500\) annually for the following 5 years. If the company uses an MARR of \(5.5 \%\) per year, what is the present value of these cash flows? What is the annual equivalent of the benefits over a 7 -year period?