05.01-PR001 WP Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year.An emission reduction filter will cost $75,000

and have an expected life of 5 years. Carlisle's MARR is 10%/year. a. What is the annual worth of this investment? b. What is the decision rule for judging the attractiveness of investments based on annual worth? c. Is the filter economically justified?