What is the AEW of this project

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Question - Amazon site BFI3 wants to test a new label scanner on their package sorter. The initial investment of the machine will be $2.5 million and the benefit due to cost savings will be $900,000 per year. Normal maintenance on the machine will cost $75,000 per year and they plan for major maintenance in year 7 of $500,000. At the end of the 10 year project life, they are able to sell the parts to another warehouse for $600,000. If the MARR is 11% what is the AEW of this project?

A. -484,356

B. -395,484

C. 255, 615

D. 395,484

E. 484,356

Reference no: EM133085061

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