The Kasibu Cooperative has invested a 145,000 new mechanical grading/sorter system which is projected to improve throughput and increase revenue by 14,000 per year for five years. The estimated market value of the sorter system at the end of five years is 5,000. Using the FW method at a MARR of 12%, is this a good investment?

The Kasibu Cooperative has invested a 145,000 new mechanical grading/sorter system which is projected to improve throughput and increase revenue by 14,000 per year for five years. The estimated market value of the sorter system at the end of five years is 5,000. Using the FW method at a MARR of 12%, is this a good investment?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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