Question
Explain in detail all the STEPS while answering the questions. MAS, Int., is considering the purchase of a digital camera for the maintenance of design
Explain in detail all the STEPS while answering the questions.
MAS, Int., is considering the purchase of a digital camera for the maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers. The capital investment requirement is $300,000 and the estimated market value of the system after a six-year study period is $65,000. Annual revenues attributable to the new camera system will be $120,000, whereas additional annual expenses will be $22,000. You have been asked by management to determine the ROR of this project and to make a recommendation. The corporations MARR is 20% per year.
Use a
(i) try and error;
(ii) spreadsheet (RATE, IRR) solution to evaluate the project
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