Applications of green, lean manufacturing techniques coupled with value stream mapping can
make large financial differences over future years while placing greater emphasis on environmental
factors. Engineers with Monarch Paints have recommended to management an investment
of $200,000 now in novel methods that will reduce the amount of wastewater, packaging
materials, and other solid waste in their consumer paint manufacturing facility. Estimated savings
are $15,000 per year for each of the next 10 years and an additional savings of $300,000
at the end of 10 years in facility and equipment upgrade costs. Determine the rate of return
using hand and spreadsheet solutions.
Applications of green, lean manufacturing techniques coupled with value stream mapping canmake large financial differences over future years while placing greater emphasis on environmentalfactors. Engineers with Monarch Paints have recommended to management an investmentof $200,000 now in novel methods that will reduce the amount of wastewater, packagingmaterials, and other solid waste in their consumer paint manufacturing facility. Estimated savingsare $15,000 per year for each of the next 10 years and an additional savings of $300,000at the end of 10 years in facility and equipment upgrade costs. Determine the rate of returnusing hand and spreadsheet solutions.
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