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Question 3.1 Deluxe Chemical is raidering the installation of a computer promos control worm in one of its promising plants. This plant is mad about

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Question 3.1 Deluxe Chemical is raidering the installation of a computer promos control worm in one of its promising plants. This plant is mad about 40% of the Line, or 3500 operating hours per year, to produce a proprietary demobification chemical; during the remaining 601% of the time, it is wad to produce other aurially chemicals. The annual production of the demubiification chemical amounts to HOLD bibigrams per year, and it all for $15 per kilogram. The proposed computer promise coral spalem will not 15,010 and is eqptied to provide ourific bowefix in the production of the demub Ticalion chemical as follows I. Find, the alling price of the product could he incrend by $2 per kilogram hereon the produced work beof highe purity, which brandies into letter damekification perfoman 2. Sound, production volumes would increws by 4,0800 kilograms pr yar as a nault of higher reaction pickida, willout any inoncuz in requirements for raw material quantiting or 3. Finally, the number of prose operators could be naluand by one per shill, which repramis a swing of iZi per hour. The new androd spies would nauk in additiond mainimams axis of bill per year and huss spaind sful life of eight years While the spalem is likely to provide similar benefits in the production of the other spixially chemicals manuburbund in the promise plant, three have mul loan quantifinal as yet a Welify the oooh inflows over the life of the propel h Identify the cush aul flores over the like of the project. e. Determine the meet cash flows over the life of the project. Question 2.2 JAM Manuburduring plans un purchuing a new asably machin bar 132,010 to alone one of its current manufacturing operaline. It will eat an additional $1,500 in have the new muching inalled. With the new muchine, J.M exparis lo wave $12,0100 in annul operating and maintenance: out The machine will but five yous with an supried adrag value of 15,010. a How king will it take to recareer the investment (plus installation cut)? h II JAM's internal rain is known to be 17%, driermine the domounted payback peril. Question 3.3 You have less seked to evaluate the profitability of building a new didrilution * The proposed is or a ditribution ani aading, $1,500,000. The Guility has an cried would like ul 35 years and a nod salvage sales (and proceeds from its sule after tax adjust- * Annual savings (due is a beller strategic karalim) of 1237 000 was eqprind, annual min- besouvee and adminedralive costs will be 1014,030, and annual income bans are #3,fi1. Suppoor that the firm's MARR is IT4. Determine the meet present wurth of the investment

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