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1. Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting in half the time it takes to complete big

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1. Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting in half the time it takes to complete big commercial jobs. The costs associated with producing chemically treated vinyl rollers and fiber- impregnated rubber rollers are estimated. Determine which of the two types should be selected by calculating the rate of return on the incremental investment, Ai*. Assume the company's MARR is 10% per year. Assume one of the processes must be selected. Fill in the incremental cash flow table below. Hint: chose the correct alternative for A and B based on initial investment. State the PW-based ROR equation [6.2] in standard factor notation for the incremental cash flows. Use spreadsheet function IRR to find the exact incremental ROR to four significant digits. First cost, S Annual cost, Sper year Salvage value, $ Life, years Impregnated Treated -95,000 -20,000 -85,000 -100,000 11,000 5,000 Year Cash Flows $ Alternative A (fill in Impregnated or Treated) Cash Flows S Alternative B _(fill in Impregnated or Treated) Incremental Cash Flow S(B-A) 1. Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting in half the time it takes to complete big commercial jobs. The costs associated with producing chemically treated vinyl rollers and fiber- impregnated rubber rollers are estimated. Determine which of the two types should be selected by calculating the rate of return on the incremental investment, Ai*. Assume the company's MARR is 10% per year. Assume one of the processes must be selected. Fill in the incremental cash flow table below. Hint: chose the correct alternative for A and B based on initial investment. State the PW-based ROR equation [6.2] in standard factor notation for the incremental cash flows. Use spreadsheet function IRR to find the exact incremental ROR to four significant digits. First cost, S Annual cost, Sper year Salvage value, $ Life, years Impregnated Treated -95,000 -20,000 -85,000 -100,000 11,000 5,000 Year Cash Flows $ Alternative A (fill in Impregnated or Treated) Cash Flows S Alternative B _(fill in Impregnated or Treated) Incremental Cash Flow S(B-A)

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