The International Parcel Service has installed a new radio frequency identification system to help reduce the number of packages that are inconsistently delivered. The capital investment in the system is $65,000, and the projected annual savings are tabled below. The system's market value at the EOY five is negligible, and the MARR is 18% per year.
END OF YEAR SAVINGS
1 $25,000
2 $30,000
3 $30,000
4 $40,000
5 $46,000
What is the FW of this investment?
What is the IRR of this system?
What is the discounted payback period for this investment?