Problema design change being considered by mayberry inc, Ask an Expert

Finance

Problem:

A design change being considered by Mayberry, Inc., 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.

Task:

Question 1: What is the future worth of this investment?

Question 2: Should Mayberry implement the design change?

Please show your all calculation and also provide full explanation.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146597

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