A semiconductor manufacturing company need to purchase a mold press machine to increase

the sales of their Electric Vehicle product for every year. The yearly repairs and maintenance

expenses as well as the utalities expense for the use of the machineries are shown on the

following table. The insurance expense is also stated. The study period is $8$ years.

Factorlaltemative

Initial Imvestment

Additional Sales

Annual Operational Cost

Annual Repairs and Maintenance Cost

Insurance Expense

Additional Sales

Annual Operational Cost

Annual Repairs and Maintenance Cost

Insurance Expense

Salvage Value

Useful Lives

Depreciation

Kohtaki Mold Press

$$600\mathrm{.}000$

$300\mathrm{.}000$

$18\mathrm{.}000$

$25,{000\mathrm{.}00}^{20\mathrm{.}000in}$

$5\mathrm{.}000\mathrm{.}00$

$300\mathrm{.}000$

$18,000$

$25\mathrm{.}000{\mathrm{.}00}^{20,000in}$

$5\mathrm{.}000\mathrm{.}00$

$1\%$ of Purchase price

$8$ years

Declining Balance

A$.$ Compute using the Present Worth method to assess the Machineries and give your decision.

Compute the IRR of the Chosen machinery using the IRR function and assess whether this is a good purchase?