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(CL002) Q3. a. By improving the transmission medium, the efficiency for long distance calls and...

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(CL002) Q3. a. By improving the transmission medium, the efficiency for long distance calls and use as mean of communication could be improved. Switching from copper wires to fiber optics will improve the quality of work. For this purpose, the initial investment cost is estimated to be Rs 50,000 and equipment will have market value of Rs 6,000 at the end of a study period of seven years. Increased productivity attributes to the equipment will amount to Rs 10,000 per year after deducting all operating costs. If the firm's MARR is 15% per year, is this proposal a sound one? Use FW analysis for making decision. (marks03)

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