Answered>Order 887

How can I Solve it ?

5-55.

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.

End of Year   Savings

  1                     $25,000  2                    30,000  3                    30,000  4                   40,000  5                   46,000

Thank you.