Considering using laser technology

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A large food-processing corporation is considering using laser technology to speed up and eliminate waste in the potato-peeling process. To implement the system, the company anticipates needing $3.5 million to purchase the industrial-strength lasers. The system will save $1,550,000 per year in labor and materials. However, it will require an additonal operating and maintenance cost of $350,000. Annual income taxes will also increase by $150,000. The system is expected to have a 10 year service life and will have a salvage value of about $200,000. If the company's MARR is 18%, use the NPW method to justify the project.

Reference no: EM131001854

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