Question 5.T-Y-S.F: A drug store is looking into the possibility of installing a...

Engineering Economy [EXP-45247]

A drug store is looking into the possibility of installing a 24/7-automated prescription refill system to increase its projected revenues by $\$ 20,000$ per year over the next 5 years. Annual expenses to maintain the system are expected to be $\$ 5,000$ . The system will cost $\$ 50,000$ and will have no market value at the end of the 5 -year study period. The store’s MARR is $20 \%$ per year. Use the AW method to evaluate this investment. (5.5)

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