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As an Engineering Manager in a Food and Beverage company, you propose to purchase a tracking system based on radio frequency identifiers that will provide

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As an Engineering Manager in a Food and Beverage company, you propose to purchase a tracking system based on radio frequency identifiers that will provide a better stock placement system in the warehouse by recording stock locations and storing data in the warehouse to the server. To purchase a Tracking System to be placed in this company's warehouse, you consider the estimated investment, annual operating and maintenance costs and expected annual savings with the following breakdown details: Equipment and installation costs: $85,500 Project life: 6 years Expected salvage value: $5,000 Working capital investment (full recoverable at end of project life): $15,000 Expected annual savings on labor and materials: $65,800 Expected annual expenses: $9,150 Based on the data provided: a. Calculate the PV, FV, IRR and PP for this investment. b. At MARR = 15%, is the project acceptable

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