Assume 8 hours per day, 5 days a week, and that September had 21 days or 168 hours. Perform a net-present value calculation to help make the decision of adding another 80,000$ drill. Make the following assumptions for the calculation: A 5-year life for the drill. 16% cost of capital. Direct labor cost for manual drilling or running is $15 per hour Labor cost for programming the drill is $20 per hour. . Septembers production is indicative of monthly demand.

Standard Production Time (min) September's Production September's Total Standard Production Run (in min) (in hours) Operation Setup Run Orders Boards Setup 50 24.2 PREPARATION Artwork Generation Inspect & Shear Puch Tooling Holes 0.000 0.500 0.5000 7 99 5,761 5,761 1,450 1,200 600 1,450 1,560 960 26.0 16.0 15 2400 0.0800 0.0040 0.7506 936 4,825 5,761 765 2,160 600 37,440 9,650 540 38.205 11,810 1,140 636.8 196.8 19.0 IMAGE TRANSFER Drill Manual CNC Drill Metallization Dry Film Photoresist 1. Panel Prep 2. Laminate & Expose 3. Develop Electroplate Strip DFPR Etch & Tin Strip - 7.4 44.0 0.2006 2.000 0.2006 8.500 0.2006 0.2006 5,761 5,761 5,761 5,761 5,761 5,761 300 1.200 1,200 1,500 300 600 144 1,440 144 6,121 144 144 444 2,640 1,344 7,621 22.4 127.0 7.4 444 744 12.4 1.5006 0.5000 5,744 5,744 2,475 1,650 1,077 359 3,552 2,009 59.2 33.5 30 FABRICATION Soldermask Solder Dip Profile Punch Press CNC Router Inspect, Test, Pack 50 1500 45 1.000e 0.500 1.500 1,224 4,331 5,761 2,350 900 2,700 1,224 2,166 3,574 3,066 11,342 59.6 51.1 189.0 Total 21,950 69,955 91,905 1,531.7 Standard Production Time (min) September's Production September's Total Standard Production Run (in min) (in hours) Operation Setup Run Orders Boards Setup 50 24.2 PREPARATION Artwork Generation Inspect & Shear Puch Tooling Holes 0.000 0.500 0.5000 7 99 5,761 5,761 1,450 1,200 600 1,450 1,560 960 26.0 16.0 15 2400 0.0800 0.0040 0.7506 936 4,825 5,761 765 2,160 600 37,440 9,650 540 38.205 11,810 1,140 636.8 196.8 19.0 IMAGE TRANSFER Drill Manual CNC Drill Metallization Dry Film Photoresist 1. Panel Prep 2. Laminate & Expose 3. Develop Electroplate Strip DFPR Etch & Tin Strip - 7.4 44.0 0.2006 2.000 0.2006 8.500 0.2006 0.2006 5,761 5,761 5,761 5,761 5,761 5,761 300 1.200 1,200 1,500 300 600 144 1,440 144 6,121 144 144 444 2,640 1,344 7,621 22.4 127.0 7.4 444 744 12.4 1.5006 0.5000 5,744 5,744 2,475 1,650 1,077 359 3,552 2,009 59.2 33.5 30 FABRICATION Soldermask Solder Dip Profile Punch Press CNC Router Inspect, Test, Pack 50 1500 45 1.000e 0.500 1.500 1,224 4,331 5,761 2,350 900 2,700 1,224 2,166 3,574 3,066 11,342 59.6 51.1 189.0 Total 21,950 69,955 91,905 1,531.7