The International Parcel Service has installed a new radio frequency identification system to help reduce the number of packages that are incorrectly delivered. The capital investment in the system is $65,000, and the projected annual savings are tabled below. The system’s market value at the EOY five is negligible, and the MARR is 18% per year. Calculate the present worth of the project. a. $ 35,730 b. $ 36,730 c. $ 37,730 d. None of the choices

ENGR.ECONOMIC ANALYSIS
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Engineering economy - ENGR 3322

The International Parcel Service has installed a new radio frequency identification system to help reduce the number of packages that are incorrectly delivered. The capital investment in the system is $65,000, and the projected annual savings are tabled below. The system’s market value at the EOY five is negligible, and the MARR is 18% per year. Calculate the present worth of the project.

a. $ 35,730

b. $ 36,730

c. $ 37,730

d. None of the choices

 

End of Year Savings
1
$25,000
2
30,000
30,000
40,000
46,000
3
4
Transcribed Image Text:End of Year Savings 1 $25,000 2 30,000 30,000 40,000 46,000 3 4
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