without excel please Question (3): The IPS company has installed a system to help reduce the number of defectiveproducts. The capital investment in the system is $X1, and the projected annual savings are tabledbelow. The system's market value at the EOY five is negligible, and the MARR is x2% per year.Savings25,00030,00035,00040,00046,000EOY234.a. What is the FW of this investment? Based on cconomical decision rule, is this a goodinvestment?b. What is the IRR of the system? Based on economical decision rule, is this a goodinvestment?c. What is the discounted payback period for this investment?X1=75000X2=10%

Future worth is the sum of the future value of cash flows for the investment project. Formula,…

Question (3): 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 tabl below. The system's market value at the EOY five is negligible, and the MARR is x2 per year EOY Savings 25,000 30,000 35,000 40,000 46,000 3. a What is the FW of this investment? Based on cconomical decision nuk, is this a good investment? b. What is the IRR of the system? Based on economical decision ruke, is this a good investment? c. What is the discounted payback period for this investment? X1=75000 X2=10%

Question (3): 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 tabl below. The system's market value at the EOY five is negligible, and the MARR is x2 per year EOY Savings 25,000 30,000 35,000 40,000 46,000 3. a What is the FW of this investment? Based on cconomical decision nuk, is this a good investment? b. What is the IRR of the system? Based on economical decision ruke, is this a good investment? c. What is the discounted payback period for this investment? X1=75000 X2=10%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 21BEA

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