A low - cost noncontact temperature measuring tool may be able to identify railroad car wheels that are in need of repair long before costly structural failure occurs. If the BNSF railroad saves 100,000 in year 1, $110,000 in year 2, and amounts increasing by $10,000 for each year for five years, what is the present worth of savings at an interest rate of 10% per year?
Draw the cash flow diagram before solving the problem mathematically.