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You are faced with a decision on an investment proposal. Specially, the estimated additional income from the investment is $180,000 per year; the initial investment costs are $640,000; and the estimated annual costs are $44,000, which begin decreasing by

You are faced with a decision on an investment proposal. Specially, the estimated additional income from the investment  is $180,000 per year; the initial investment costs are $640,000; and the estimated annual costs are $44,000, which begin decreasing by $4,000 per year starting at the end of third year. Assume an 8-year analysis period, no salvage value, and MARR = 15%  (4.3, 4.6)

a. What is PW of this proposal?

b. What is IRR of this proposal?

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You are faced with a decision on an investment proposal. Specially, the estimated additional income from the investment is $180,000 per year; the initial investment costs are $640,000; and the estimated annual costs are $44,000, which begin decreasing by
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