1. A Pentsys lift table equipped with a powered deck extension can provide a safer and faster method for maintenance personnel to service large machinery. If labor savings are estimated to be $13,000 per 6 months, how much can Follansbee Steel afford to spend to purchase one, if the company uses a MARR of 1% per month and wants to recover its investment in 2-1/2 years?
2. Atlas Long-Haul Transportation is considering in- stalling Valutemp temperature loggers in all of its re- frigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $40,000 per year for 5 years, how much should the company be willing to spend now if it uses an in- terest rate of 12% per year compounded quarterly?