Calculate the cr and aw values for the system

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Reference no: EM131908215

Problem

Lockheed Martin is increasing its booster thrust power in order to win more satellite launch contracts from European companies interested in opening up new global communications markets. A piece of earth-based tracking equipment is expected to require an investment of $23 million, with $18 million committed now and the remaining $5 million expended at the end of year 1 of the project. Annual operating costs for the system are expected to start the first year and continue at $2.5 million per year. The useful life of the tracker is 10 years with a salvage value of $1 million. Calculate the CR and AW values for the system, if the corporate M ARR is 10% per year.

Reference no: EM131908215

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