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Example: A chemical company wants to install a computer aided process control system for product A. The facility spends 40% of its production time (or
Example: A chemical company wants to install a computer aided process control system for product A. The facility spends 40% of its production time (or 3500 operating hours) producing this product. In the remaining 60%, different products are produced. 30000 kg of product A is produced annually and sold at 15 TL/kg. The cost of the computer aided system is 650000 TL and the expected benefits are given below: - Sales price of product A will increase by 2 TL/kg - Production volume will increase by 4000 kg/year - The number of operators will decrease and there will be 25 TL/hour earnings. Let the annual maintenance cost of the system be 53000 TL/year and the expected lifetime of the system is 8 years. What would the net cash flow be for each year
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