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Consider four plastic presses. Suppose that each press is capable of producing 120,000 total unita per year, but the estimated reject rate is different for

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Consider four plastic presses. Suppose that each press is capable of producing 120,000 total unita per year, but the estimated reject rate is different for each alternative. This means that the expected revenue will differ among the alternatives uince only nondefective units can be sold. The data for the four presses are summarized below, The lafe of each press (and the study period) is five years Part A: If all nondefective units can be aold for $0.375 per unit and the MARR=10\%, which press should be chosen? On the same excel spreadsheet use the following methods: a Present Worth b- Annual Vorth c- IRR Part B- Re-evaluate the recommended alternative if (a) the MARR =15% per year; (b) the selling price is $0.5 per good unit and (c) rejected unita can be sold as scrap for 50.1 per unit. a- what is the recommended alternative if all these changes occur simultaneously? (use PWN method) Study the following two alternatives using the Internal Race of Return mechod. Stace what MARR condivons will govern your selection of one or the ocher. providing that the null alternative does not exist. Your company operates a fleet of flight trucks that are used to provide contract delivery services. As the engineering and technical manager: you are analyaing the purchase of 55 new trucks as an addition to the fleet. These trucks would be used for a new contract the sales staff is trying to obtain. If purchased, the trucks would cost \$21,200 each: estimated use is 20,000 milen per year per truck: estimated annual operation and maintenance and ocher related expenses (year-zero dollars) are 90.45 per mile which is forecasted to increase at a rate of 5% per year: and estemated annual revenue (in actual \$) are $20.000 per year per truck required . The trucks are MACAS-GDS three-year property class assets. The analyus period is four years: t=38% : after-tax MARR=15\% per year (after-taxt includes an inflation component) : and the estimated MV at the end of four years (in year-zero dollara) is 35% of the purchase price of the vehieles. This eatimate is expected to inerease at the rate of 2: per year. Part A.Create a spreadaheet to determine whether your company ahould buy the new trucks. Develop the apreadsheet for each truck (per truck). Part B: Based on an aftercax, actual-dollar analyais, what is the annual revenue required by your company from the contract to justify these expenditures before any profit is consideredt Consider four plastic presses. Suppose that each press is capable of producing 120,000 total units per year, but the estimated reject rate is different for each alternative. This means that the expected revenue will differ among the alternatives since only nondefective units can be sold. The data for the four presses are summarized below. The life of each press (and the study period) is five years PartA- If all nondefective units can be sold for $0.375 per unit and the MARR=10\%, which press should be chosen? On the same excel spreadsheet use the following methods: a- Present Worth b- Annual Worth c- IRR Part B- Re-evaluate the recommended alternative if (a) the MARR=15\% per year: (b) the selling price is $0.5 per good unit; and (c) rejected units can be sold as scrap for $0.1 per unit. a- what is the recommended alternative if all these changes occur simultaneously? (use PW method) Study the following two alternatives using the Internal Rate of Return method. State what MARR conditions will govern your selection of one or the other, providing that the null alternative does not exist. Your company operates a fleet of flight trucks that are used to provide contract delivery services. As the engineering and technical manager, you are analyzing the purchase of 55 new trucks as an addition to the fleet. These trucks would be used for a new contract the sales staff is trying to obtain. If purchased, the trucks would cost $21.200 each; estimated use is 20,000 miles per year per truck; estimated annual operation and maintenance and other related expenses (year-zero dollars) are $0.45 per mile which is forecasted to increase at a rate of 5% per year; and estimated annual revenue (in actual $ ) are $20,000 per year per truck required. The trucks are MACRS-GDS three-year property class assets. The analysis period is four years; t=38%; after-tax MARR=15% per year (after-tax; includes an inflation component) ; and the estimated MV at the end of four years (in year-zero dollars) is 35% of the purchase price of the vehicles. This estimate is expected to increase at the rate of 2% per year. Part A: Create a spreadsheet to determine whether your company should buy the new trucks. Develop the spreadsheet for each truck (per truck). Part B: Based on an after-tax, actual-dollar analysis, what is the annual revenue required by your company from the contract to justify these expenditures before any profit is considered

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