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05.01-PR011 WP Mayberry, Inc., is considering a design change that will cost $6,000 and will result in an annual savings of $1,000 per year for the 6-year life of the

project. A cost of $2,000 will be avoided at the end of the project as a result of the change. MARR is 8%/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. Should Mayberry implement the design change?

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