Amazon site BFI3 wants to test a new label scanner on their package sorter. The initial investment of the machine will be $2.5 million and the benefit due to cost savings will be $900,000 per year....


Amazon site BFI3 wants to test a new label scanner on their package sorter. The initial investment<br>of the machine will be $2.5 million and the benefit due to cost savings will be $900,000 per year.<br>Normal maintenance on the machine will cost $75,000 per year and they plan for major<br>maintenance in year 7 of $500,000. At the end of the 10 year project life, they are able to sell the<br>parts to another warehouse for $600,000. If the MARR is 11% what is the AEW of this project?<br>

Extracted text: Amazon site BFI3 wants to test a new label scanner on their package sorter. The initial investment of the machine will be $2.5 million and the benefit due to cost savings will be $900,000 per year. Normal maintenance on the machine will cost $75,000 per year and they plan for major maintenance in year 7 of $500,000. At the end of the 10 year project life, they are able to sell the parts to another warehouse for $600,000. If the MARR is 11% what is the AEW of this project?

Jun 07, 2022
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