A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information. Determine which is best by after-tax analysis using an income tax rate of 29%, an after-tax MARR of 16%, and SL depreciation. Assume that each has a life of six years and no BV or MV Degree A B C D Click the icon to view the interest and annuity table for discrete compounding when the MARR is 16% per year. First Cost $12,000 13,000 20,000 27,000 Annual Labor Expense $8,500 7,500 4,000 2,500 D Annual Power and Maintenance Expense $500 800 1,100 1,600
A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information. Determine which is best by after-tax analysis using an income tax rate of 29%, an after-tax MARR of 16%, and SL depreciation. Assume that each has a life of six years and no BV or MV Degree A B C D Click the icon to view the interest and annuity table for discrete compounding when the MARR is 16% per year. First Cost $12,000 13,000 20,000 27,000 Annual Labor Expense $8,500 7,500 4,000 2,500 D Annual Power and Maintenance Expense $500 800 1,100 1,600
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information. Determine which is best by after-tax analysis using an income tax rate of 29%, an after-tax MARR of 16%, and SL depreciation. Assume that each has a life of
six years and no BV or MV.
Degree
A
B
C
D
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 16% per year.
More Info
N
1
2
3
4
5
6
7
8
9
10
Single Payment
Compound
Amount
Factor
To Find F
Given P
FIP
1.1600
1.3456
1.5609
1.8106
2.1003
Discrete Compounding; i = 16%
Compound
Amount
Factor
To Find F
Given A
FIA
1.0000
2.1600
3.5056
5.0665
6.8771
8.9775
11.4139
14.2401
17.5185
21.3215
2.4364
2.8262
3.2784
3.8030
4.4114
Present
Worth Factor
To Find P
Given F
PIF
0.8621
0.7432
0.6407
0.5523
0.4761
0.4104
0.3538
0.3050
0.2630
0.2267
Print
Uniform Series
Present
Worth Factor
To Find P
Given A
PIA
0.8621
1.6052
2.2459
2.7982
3.2743
3.6847
4.0386
4.3436
4.6065
4.8332
Done
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4630
0.2853
0.1974
0.1454
0.1114
0.0876
0.0702
0.0571
0.0469
Capital
Recovery
Factor
To Find A
Given P
AIP
1.1600
0.6230
0.4453
0.3574
0.3054
0.2714
0.2476
0.2302
0.2171
0.2069
-
First
Cost
$12,000
13,000
20,000
27,000
X
Annual
Labor
Expense
$8.500
C
7,500
4,000
2.500
Q
Annual Power
and Maintenance
Expense
$500
800
1,100
1,600
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