How can I Solve it ?

5-55.

The International Parcel Service has installed

a new radio frequency identification system to help

reduce the number of packages that are incorrectly

delivered. The capital investment in the system is

$65,000, and the projected annual savings are tabled

below. The system’s market value at the EOY five is

negligible, and the MARR is 18% per year.

End of Year Savings

1 $25,000 2 30,000 3 30,000 4 40,000 5 46,000

Thank you.