Determine present worth of savings due to reconfiguration

Reference no: EM131775009

Question: Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers .-is, exist73, 000 per year. A clever industrial engineer found that by spending exist 16, 000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to exist58, 000 next year and exist52, 000 in years 2 through 5. Using an interest rate of 10% per year, determine the present worth of the savings due to the reconfiguration.

Reference no: EM131775009

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