1. To expand its remanufacturing capacity, a depot plans to build a new disassembly facility, which will require an initial investment of $1,900,000 with a monthly operating cost of $15,250. The new facility is expected to have a salvage/demo value of $275,000 after 5 years. Depot revenues are estimated to increase by $50,000 per month. Using a MARR of 7%, compounded annually, should the depot build this new facility? Why or why not?

Draw the CFD associated with this scenario. Assume all costs are End-of-Year.