Question
1. Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An emission
1. Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10 percent/year.
a. What is the annual worth of this investment? What is the decision rule on this investment based on annual worth of this investment?
b. What is the future worth of this investment? What is the decision rule on this investment based on future worth of this investment?
c. What is the IRR of this investment? What is the decision rule on this investment based on IRR of this investment?
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Analysis For Financial Management
Authors: Robert C Higgins
8th International Edition
0071257063, 9780071257060
