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A drug store is looking into the possibility of installing an automated prescription refill system to...

A drug store is looking into the possibility of installing an automated prescription refill system to increase its projected revenues by $20,000 per year over the next 5 years. Annual expenses to maintain the system are expected to be $5,000. The system will cost $50,000 and will have no market value at the end of the 5-year study period. The store’s MARR is 12% per year.

a. Use the EUAW (Equivalent Uniform Annual Worth) method to evaluate this capital investment. A cash flow diagram must also be included.

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Cash flow diagram:-

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