Frito Lay is building a new manufacturing line to replace their Funyuns process because the line...

Frito Lay is building a new manufacturing line to replace their Funyuns process because the line is really old. The new line will cost $17,550,000. Because of the new efficient design, the plant will save $850,000 per year in Utilities, $1,500,000 per year in Quality Scrap, $300,000 per year in Maintenance,. What is the NPV of this project over the 20 year life if their company MARR is 12%?

Please do on Excel and Show Formula

Expert Solution

Total savings due to the new efficient design = $850000+$1500000+$300000 = $2650000

jeff jeffy answered 2 years ago

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