PIM Industries Incorporated manufactures electronics components. Each unit costs $40 before the final test. The final test rejects, on average, 4% of the 58,000 units manufactured per year. The average rejection rate of the industry is 2%. A consultant has determined that poor lighting is the most likely cause of this high rejection rate. It would cost $165,000 to install adequate lighting in the assembly department, which would be useful for 5 years. With adequate lighting (which will cost an additional $6,300 of operating costs per year), the firm expects to reduce its rejection rate to no higher than the industry average. Required: 1-a. What would be the projected five-year impact on operating profit? Answer is complete but not entirely correct. Five-year projected effect on operating income $ 14,500 X 1-b. Based solely on the relevant cost analysis you performed, should the firm install the lighting? Yes