AMT, Inc., is considering the purchase of a digital camera for maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers. a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $326,000; market value at end of year six = $122,000, annual revenues = $122,000; annual expenses = $8,000; equipment life = 6 years, effective income tax rate = 25%, and after-tax MARR = 8% per year. MACRS depreciation will be used with a five-year recovery period. b. Compute the PW of the equipment's ATCFS. More info GDS Recovery Rates (r) Year 5-year Property Class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 5 0.1152 6 0.0576 N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 8% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.0800 0.9259 1.0000 0.9259 1.0000 1.1664 0.8573 2.0800 1.7833 0.4808 1.2597 0.7938 3.2464 2.5771 0.3080 1.3605 0.7350 4.5061 3.3121 0.2219 1.4693 0.6806 5.8666 3.9927 0.1705 1.5869 0.6302 7.3359 4.6229 0.1363 1.7138 0.5835 8.9228 5.2064 0.1121 1.8509 0.5403 10.6366 5.7466 0.0940 1.9990 0.5002 12.4876 6.2469 0.0801 2.1589 0.4632 14.4866 6.7101 0.0690 Capital Recovery Factor To Find A Given P AIP 1.0800 0.5608 0.3880 0.3019 0.2505 0.2163 0.1921 0.1740 0.1601 0.1490 Print Done AMT, Inc., is considering the purchase of a digital camera for maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers. a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $326,000; market value at end of year six = $122,000, annual revenues = $122,000; annual expenses = $8,000; equipment life = 6 years, effective income tax rate = 25%, and after-tax MARR = 8% per year. MACRS depreciation will be used with a five-year recovery period. b. Compute the PW of the equipment's ATCFS. More info GDS Recovery Rates (r) Year 5-year Property Class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 5 0.1152 6 0.0576 N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 8% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.0800 0.9259 1.0000 0.9259 1.0000 1.1664 0.8573 2.0800 1.7833 0.4808 1.2597 0.7938 3.2464 2.5771 0.3080 1.3605 0.7350 4.5061 3.3121 0.2219 1.4693 0.6806 5.8666 3.9927 0.1705 1.5869 0.6302 7.3359 4.6229 0.1363 1.7138 0.5835 8.9228 5.2064 0.1121 1.8509 0.5403 10.6366 5.7466 0.0940 1.9990 0.5002 12.4876 6.2469 0.0801 2.1589 0.4632 14.4866 6.7101 0.0690 Capital Recovery Factor To Find A Given P AIP 1.0800 0.5608 0.3880 0.3019 0.2505 0.2163 0.1921 0.1740 0.1601 0.1490 Print Done
