Sonar warning devices are being purchased by the St. James department store chain to help trucks back up at store loading docks. The total cost of purchase and installation is $220,000. There are two types of savings from the system. Faster turnaround time at the congested loading docks will save $50,000 per year in today's dollars. Reduced damage to the loading docks will save $30,000 per year in today's dollars. St. James has an observed current dollar MARR of 18 percent. The sonar system has a of four years. Its scrap value in today's dollars is $20,000. The inflation rate is expected to be 6 percent per year over the next four years. Answers parts (a) through (e). a. What is St. James real MARR?

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