0501 pr001 wp carlisle company has been cited and must invest in equip
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?
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