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Thanks for your help! 1. Assume that the major cost estimates below have been made based on a 6- month study about two new products
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1. Assume that the major cost estimates below have been made based on a 6- month study about two new products that could have a 10-year life span for Ford Company. Use LCC analysis at the industry MARR of 15% to determine the size of the commitment in AW terms. (You should calculate the PW by phase and stage, add all PW values, and then find the AW over 10 years.) Time is indicated in product-years. Since all estimates are for costs, they are not preceded by a minus sign.) (50 points) Consumer habits study (year 0) Preliminary product design (year 1) Preliminary equipment/plant design (year 1) Detail product designs and test marketing (years 1, 2) Detail equipment/plant design (year 2) 2.0 milliorn 0.9 million 0.5 million 1.5 million each year 1.0 million Equipment acquisition (years 1 and 2) Current equipment upgrades (year 2) New equipment purchases (years 4 and 8) $2.0 tgillion each year 1.73 million 2.0 million (year 4) + 15 % per purchase thereafter Annual equipment operating cost (AOC) (years 3-10) 300.000 (year 3) + 4% per year thereafter $8.0 milliorn 5.0 million (year 3) Marketing, year 2 years 3-10 and-0.2 million per year thereafter year 5 only 3.0 million extra Human resources, 100 new employees for 3000 hours $ 30 per hour (year 3) -+ per year (years 3-10) Phaseout and disposal (years 9 and 10) 5% per year S1.0 million each yearStep by Step Solution
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