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Please solve A and B without the use of excel AMT, Inc., is considering the purchase of a digital camera for maintenance of design specifications
Please solve A and B without the use of excel
AMT, Inc., is considering the purchase of a digital camera for 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. a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $346,000; market value at end of year six = $122,000; annual revenues = 5111,000; annual expenses = $6,000; equipment life = 6 years, effective income tax rate = 22%, and after-tax MARR = 12% per year. MACRS depreciation will be used with a five-year recovery period. b. Compute the PW of the equipment's ATCFs. Click the icon to view the GDS Recovery Rates (x) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. GDS Recovery Rates (1) Year 5-year Property Class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 5 0.1152 0.0576 N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 12% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.1200 0.8929 1.0000 0.8929 1.0000 1.2544 0.7972 2.1200 1.6901 0.4717 1.4049 0.7118 3.3744 2.4018 0.2963 1.5735 0.6355 4.7793 3.0373 0.2092 1.7623 0.5674 6.3528 3.6048 0.1574 1.9738 0.5066 8.1152 4.1114 0.1232 2.2107 0.4523 10.0890 4.5638 0.0991 2.4760 0.4039 12.2997 4.9676 0.0813 2.7731 0.3606 14.7757 5.3282 0.0677 3.1058 0.3220 17.5487 5.6502 0.0570 Capital Recovery Factor To Find A Given P AIP 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770 AMT, Inc., is considering the purchase of a digital camera for 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. a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $346,000; market value at end of year six = $122,000; annual revenues = 5111,000; annual expenses = $6,000; equipment life = 6 years, effective income tax rate = 22%, and after-tax MARR = 12% per year. MACRS depreciation will be used with a five-year recovery period. b. Compute the PW of the equipment's ATCFs. Click the icon to view the GDS Recovery Rates (x) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. GDS Recovery Rates (1) Year 5-year Property Class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 5 0.1152 0.0576 N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 12% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.1200 0.8929 1.0000 0.8929 1.0000 1.2544 0.7972 2.1200 1.6901 0.4717 1.4049 0.7118 3.3744 2.4018 0.2963 1.5735 0.6355 4.7793 3.0373 0.2092 1.7623 0.5674 6.3528 3.6048 0.1574 1.9738 0.5066 8.1152 4.1114 0.1232 2.2107 0.4523 10.0890 4.5638 0.0991 2.4760 0.4039 12.2997 4.9676 0.0813 2.7731 0.3606 14.7757 5.3282 0.0677 3.1058 0.3220 17.5487 5.6502 0.0570 Capital Recovery Factor To Find A Given P AIP 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770Step by Step Solution
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