Sonar warning devices are being purchased by the St. James department store chain to help trucks back up at store loading docks. The total cost of purchase and installation is $220,000. There are two types of savings from the system. Faster turnaround time at the congested loading docks will save $50,000 per year in today's dollars. Reduced damage to the loading docks will save $30,000 per year in today's dollars. St. James has an observed current dollar MARR of 18 percent. The sonar system has a of four years. Its scrap value in today's dollars is $20,000. The inflation rate is expected to be 6 percent per year over the next four years. Answers parts (a) through (e). a. What is St. James real MARR?

Sonar warning devices are being purchased by the St. James department store chain to help trucks back up at store loading docks. The total cost of purchase and installation is $220,000. There are two types of savings from the system. Faster turnaround time at the congested loading docks will save $50,000 per year in today's dollars. Reduced damage to the loading docks will save $30,000 per year in today's dollars. St. James has an observed current dollar MARR of 18 percent. The sonar system has a of four years. Its scrap value in today's dollars is $20,000. The inflation rate is expected to be 6 percent per year over the next four years. Answers parts (a) through (e). a. What is St. James real MARR?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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