An automobile company is planning to install inspection procedures to reduce the cost of repairs to new and used automobiles under warranty. The economic life is 10 years with a 25% rate of return, zero salvage value. How much money should be invested based on a rate of return analysis.

Plan	Equipment	Annual labor cost	Cost of car repairs
Current			1,585,000
A	1,400,000	40,000	680,000
B	1,700,000	50,000	610,000
C	1,800,000	60,000	300,000
D	2,000,000	70,000	230,000
E	2,600,000	80,000	180,000
F	3,000,000	85,000	165,000