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question 1 HW7

A new production system for a factory is to be purchased and installed for $175,812. This system will save approximately 300,000 kWh of electric power each year for a 6-year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 15% per year, and the salvage value of the system will be $8,172 at year 6. Using the AW method to analyzes if this investment is economically justified 

A- calculate the AW of the above investment and insert the result below. 


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