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PNG Pharmaceuticals is considering an investment in a new automated materials handling system that is expected to reduce its drug manufacturing costs by eliminating much

PNG Pharmaceuticals is considering an investment in a new automated materials handling system that is expected to reduce its drug manufacturing costs by eliminating much of the waste currently involved in its specialty drug division. The new system will require an initial investment of $.50,000 and is expected to provide cash savings over the next six-year and Cost of Capital is 10% period as follows.
\table[[Year,Expected Cash Flow,PV of Cash Flow at 10%],[1,15,000,],[2,8,000,],[3,10,000,],[4,12,000,],[5,14,000,],[6,16,000,],[NPV,,],[PI,,],[BCR,,]]
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