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Blueair Avionics Inc Company Project You work at Blueair Avionics Inc and you are selected to be part of a team that will evaluate the
Blueair Avionics Inc Company Project You work at Blueair Avionics Inc and you are selected to be part of a team that will evaluate the company's investment alternatives. The company can invest in the following: Invest 3 million for an Order Configuration software tool that will allow Blueair to get out more competitive, more accurate bids quicker. o Implementation and Training costs $30000 o 1st year increase in Revenue $1.75 million. This amount is expected to grow by 3% per year o 7 year life. o MACRS GDS 5 year property Update current Rapid response work cell, use one of the following 2 options o Buy 9 new 3D printers for a flexible prototype work cell to replace old machinery. Buy from German Company for 700,000 Euro's each Other information for all nine robots combined below: Shipping Handling Insurance: S6000 Installation: $10000 Specialized Training: $8000 Market Value for all 10 robots $200,000 in today's dollars. Assume 2% inflation per year for robots. Assume selling after 7 year life. Savings in labor and energy costs $2.3 million per year in 1st year dollars. Assume inflation rate of 3% for labor and energy costs per year Sell old machines for $500,000. MACRS GDS 7 year Life 7 years
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