Question
No hand writing and Excel just typing X1=$100,000 , X2=6% The IPS company has installed a system to help reduce the number of defective products.
No hand writing and Excel just typing
X1=$100,000 , X2=6%
The IPS company has installed a system to help reduce the number of defective products. The capital investment in the system is $X1, and the projected annual savings are tabled below. The systems market value at the EOY five is negligible, and the MARR is x2% per year.
| EOY | Savings |
| 1 | 25,000 |
| 2 | 30,000 |
| 3 | 35,000 |
| 4 | 40,000 |
| 5 | 46,000 |
- What is the FW of this investment? Based on economical decision rule, is this a good investment?
- What is the IRR of the system? Based on economical decision rule, is this a good investment?
- What is the discounted payback period for this investment?
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Options Futures And Other Derivatives
Authors: John C. Hull
4th Edition
0130224448, 9780130224446
