FISH NETS ELECTRIC BARRIERS
Initial investment $1,000,000 $2,000,000
Annual benefits $600,000 (EOY 1) $1,200,000 (EOY 1)
less expenses
$500,000 (EOY2) $1,500,000(EOY 2)
$500,000(EOY3) $0 (EOY 3)
Refer to the date given in problem 6-53. The EOY 3 estimate for the "fish nets: alternative is thought to be overly optimistic. A more realistic estimate is $400,000. If the MARR s 20%, what is the recommendation now?