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Business, 10.12.2021 18:10 laiahlott

A company is considering an upgrade of production equipment to reduce costs over the next 5 years. The company can invest $80,000 now, 1 year from now, or 2 years from now. Depending on when the investment is made, the savings will vary. The saving estimates are $26,000, $31,000, or $37,000 per year if the investment is made now, 1 year from now, or 2 years from now, respectively. The company will only invest if the ROR is at least 20% per year. Using a future worth analysis, determine if the timing of the investment will affect the return requirement and, if so, when the investment should be made. Set up the spreadsheet functions necessary to perform the analysis and answer the following questions. Upload your spreadsheet in the location provided below. (a) Investment Timing (Enter Now / Year 1/ Year 2 / Never):
(b) Estimated Future Worth (dollars): $

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