ENGINEERING ECONOMICS

install cost of the new machinery is $400,000 and is expected to last for 5 years. The salvage value is expected to be $30,000 in todays dollars. Revenue is expected to increase by $40,000 while operating costs are expected to increase $2500 (both actual). Determine the present worth of the project, assuming an (actual) MARR of 10%, a CCA rate of 10% and a corporate tax rate of 15%.