Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $110,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $1,700 using the gang punch, but annual raw material costs would decrease $11,000. MARR is 9%/year. Part a What is the future worth of this investment? $ Round entry to nearest dollar. The tolerance is ±2.

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $110,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $1,700 using the gang punch, but annual raw material costs would decrease $11,000. MARR is 9%/year. Part a What is the future worth of this investment? $ Round entry to nearest dollar. The tolerance is ±2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $80,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $6,000 using the gang punch, but annual raw material costs would decrease $12,000. MARR is 5.5% /year. What is the present worth of this investment?
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5.15
What would be the annual worth on this investment?
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earch 1 Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $120,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $2,000 using the gang punch, but annual raw material costs would decrease $15,000. MARR is 4.0%/year. Part a Q Ft A What is the present worth of this investment? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +5. eTextbook and Media Z Save for Later Part b The parts of this question must be completed in order. This part will be available when you complete the part above. @ 2 F2 E 3 S W WE D x $ 4 R F FB % 5 FG 6 TY G F7 & 7 H n FB U * 8 F9 Attempts: 0 of 3 used I 02 ( 9 F10 J K X CV BN M O - ) F11 0 L < Alt Submit Answer *+ P F12 11 : 85°F Mostly cloud Prisc ( + 11 [ ? Inse A
If ERR > MARR, then IRR > ERR > MARR. A) True (B) False
If you could write out the equation once for me to see where the values should go, that would be helpful. Thank you!
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