A new production system for a factory is to be purchased and installed for $169,853. This...

A new production system for a factory is to be purchased and installed for $169,853. This system will save approximately 300,000 kWh of electric power each year for a 6-year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 15% per year, and the salvage value of the system will be $8,297 at year 6. Using the AW method to analyzes if this investment is economically justified

A- calculate the AW of the above investment and insert the result below.

B- Based on the AW value you got in the previous question, is this investment economically justified or not? type you explanation below

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Rahul Sunny answered 1 year ago

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