Problem
Fred is evaluating whether a more efficient motor with a life of 5 years should be installed on an assembly line. Energy savings are estimated at $400 for the first year, then increasing by 6% annually. If the interest rate is 10%, what is the present value of the energy savings?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.