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IENG377 Engineering Economy Case Study: Mountaineer Manufacturing You are starting a manufacturing company in Pittsburgh, Pa. Given the following information, what are the projected income

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IENG377 Engineering Economy Case Study: Mountaineer Manufacturing You are starting a manufacturing company in Pittsburgh, Pa. Given the following information, what are the projected income statements for this company for the next 5 years? Management/Administration cost: CEO (Your Salary) S150,000 VP Marketing $100,000 VP Sales $125,000 Chief Technology Officer $100,000 VP Operations $100,000 Other Administration Personnel Salary Combined: 400,000 Benefits for above personnel: Add 40% of total salary Inflation: Above salaries are for year 1 . These go up by inflation of 296/year. Total Salary+Benefits Year Year 1 Year 2 Year 3 Year 4 Year 5 Total Salary Facilities: Lease Plum Industrial Court Building, 20,000 sq.ft. @ $16/sq.ft. per year Included rent and utilities. Lease remains the same over the next 5 years. Depreciation of Machinery; Purchase 5 different automated machines for flexible work cell. The total cost of the machines is spread out over 5 years per IRS rules. Use numbers in chart below for total year by year depreciation in income statement. Year Year 1 Year 2 Depreciation 80000 ear3 150000 Year 4 140000 140000 Year S 80000

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