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Please answer with formulas and all algebra etc. Thank you 19) A manufacturer of printed circuit boards is considering purchasing a new surface mount technology
Please answer with formulas and all algebra etc. Thank you
19) A manufacturer of printed circuit boards is considering purchasing a new surface mount technology component placement system. Two machines are under consideration and the following information is prepared for the economic evaluation. If the company's after-tax MARR of 12% per year and MACRS with a 7-year recovery period is used, determine which alternative is preferred on the basis of their after-tax annual worth. Assume an effective tax of 35% per year. Machine First costs Net annual revenue R $395,000 $152,500 Q $380,000 $150,000 in year 1, increasing by $500 per year thereafter $4000 8 1 0 Market value at the end of the useful life Life, years 10 Answer: AWO(12%) = $40,392.67 AWR(12%) = $45,882.31 Alternative Ris preferred
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