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USING EXCEL Your company is considering investing in an automation system for its production line, with in order to have savings in salaries. Get the
USING EXCEL Your company is considering investing in an automation system for its production line, with in order to have savings in salaries. Get the Net Cash Flow for this project, calculate its Value Net Present and Internal Rate of Return considering the following data: Automation system hardware cost: $250,000 Hardware shipping cost: $25,000 Cost of automation system software: $75,000 Necessary adaptations to the facilities: $50,000 New operators needed: 3 Cost of initial training: $10,000 per operator Salaries of each of the new operators: $1,500 per month Salaries of each of the current workers: $1,000 per month Current workers who will no longer be needed: 10 Hiring costs for new operators: $500 per operator Firing costs for current workers: $1,000 per worker Electricity consumed by the system: 250 kWh per month Cost of electricity: $2.5 per kWh System maintenance cost: $2,500 per year System life: 10 years Salvage value: $50,000 MARR = 18% per year
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