Problem:
Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10 %/year.
Requirement:
Question 1: What is the annual worth of this investment? Please provide step by step solution and also justify your answer and calculations.