OptILux Is considering Investing In an automated manufacturing system. The system requires an InItial Investment of $
million, has a year life, and will have zero salvage value. If the system Is implemented, the company will save $ per
year In direct labor costs. The company requires a return from its investments. PV of $ FV of $ PVA of $ and FVA of $
Use approprlate factors from the tables provided.
a Compute the proposed Investment's net present value.
b Using the answer from part a Is the Investment's Internal rate of return higher or lower than Hint: It is not necessary to
compute IRR to answer this question.
Complete this question by entering your answers in the tabs below.
Compute the proposed investment's net present value.
Net present value
