What is the equivalent uniform annual worth and irr

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Automotive Rebuilders, Inc., is considering a new automated assembly line to automate assembly of rebuilt alternators. The new line can be installed for $525,000 today and will have a life of 9 years until technological obsolescence. At the end of its 9 year life, its components will have a salvage value of $50,000, and it will cost $15,000 to have the line removed. The line will produce $198,750 additional sales capacity per year due to productivity gains. Additional technical labor cost will be $55,000 per year and operating and maintenance costs will be $29,500 per year. The company's MARR is 15.75%. Based on net present value estimate, do you recommend installing the automated assembly line? What is the equivalent uniform annual worth and IRR of the project?

Reference no: EM13220082

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