Projects NPV
Publix is considering some upgrades to its Distribution Center in Lakeland. Evaluate the proposal below using the Internal Rate of Return approach. Publix’s MARR is 15%.
Should Publix approve this project? Hint: Try 30%.
Conveyor Improvements
Initial cost $150,000
Annual O&M 10,000
Salvage value 45,000
Estimated useful life 20 years
Estimated annual savings 55,000
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