Based on the data below calculuate the MARR (Minimum acceptable Rate of Return), ROR (Rate of Return), and Present Worth

Selling Price: $7/pack of 30 pencils

Cost of Raw Materials:

Wooden Slats: order 257,400 for $43,758 (about $0.17/piece)

Pencil Paint: 25 gal $3000

Erasers for one order: $1932.50

Metal bands: $3474.9

Total Cost of Materials: $52165.40

Cost of Machinery:

Automatic pencil eraser tipping machine: $8,000

Pencil shaping machine: $3,000

Painting machine: $9,600

Cost of Energy: $6,000

Cost of Maintenance: $3,000

Cost of Government Regulations:

Product Selling Price: 2,316,600/yr @ $7/pack of 30 pencils

Project Assumptions

Life of the Project: 5 years

Initial Investment

Factory: rent $54000/yr for 6,400 sq ft

Salaries:$208,000 for 10 workers at $10/hour /year

Machines: $20,600

Income

Number of Pencils Needed to be Sold: 2,316,600/yr @ $7/pack of 30 mar

Gross Income: $540,540

Actual income: $158,374.60 (cost of material, labor, lease, insurance, maintenance per year)

Maintenance and Operation Costs: $9000