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Can you please answer the following and or show us what formulas to use and how to use them. Thanks, You work at Blueair Avionics
Can you please answer the following and or show us what formulas to use and how to use them.
Thanks,
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 S30000 o 1st year increase in Revenue $1.75 million. This amount is expected to grow by 3% per year. I 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: $6000 Installation: $10000 Specialized Training: $8000 Market Value for all 10 robots S200,000 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 o Upgrade current computer controlled machinery
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