Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin

Exercise 6

Johnston Implants is planning new online patient diagnostics for surgeons while they operate.The new system will cost $00,000 to install in an operating room, $000 annually for maintenance, and have an expected life of 5 years.The revenue per system is estimated to be $0,000 in year 1 and to increase by $0,000 per year through year 5.Determine if the project is economically justified using PW analysis and an MARR of 10% per year.