A when inflation is not considered b when inflation is, Operation Management

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A when inflation is not considered b when inflation is

The school of engineering is evaluating two options. It can perform upgrades now for $75,000 or it can defer for 5 years when the cost is expected to Increase to $165,000 Economist expects a real MARR of 11% per year with an average inflation rate of 3.5% Using the FUTURE WORTH ANALYSIS and CASE 4. Determine if the school of engineering should purchase now or later:

a. When inflation is not considered.

b. When inflation is considered

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