EFORMING ROR ANALYSIS FOR 3D PRINTER AND IOT TECHNOLOGY ackground oftware used in 3D printer systems manufactured by Spectrum LASER Corp. is currently able to automatically develop hollows, shells, and "tree upports to save development time. Network printing for use on multiple machines and at different locations globally is available. New software, alled JIT II, is being beta tested that will allow lloT-type (industrial Internet of Things) connections between machines at distant locations. When onb and monitoring sensors detect that a part is about to fail, or it is time to replace one of several high-profile parts, the JIT Il software will utomatically queue the part's manufacturing code onto a 3D printer that is detected to be locally idle or ready. The company believes it can design nd produce the IT Il software, the 3D printers, and the accompanying computer equipment necessary to place this technology in a wide variety of arsh environments-chemically toxic to humans, in flight, underground in mines, on the ocean floor, in war-torn areas, etc. formation or this case, we will analyze the available computers that can provide the server function necessary to make this interlinking available and uccessful. The first cost and other parameter estimates, including expected contribution to annual net cash flow, are summarized below. First cost, $ Net cash flow, $/year Life, years Server 1 100,000 35,000 Server 2 100,000 Case Study Exercises Jse spreadsheet analysis to determine the following: 1. The PW for server 1 (3 years) LCM cash flow- 2. The PW for server 2 (4 years) LCM cash flow- 25000 3. The PW for server 3 (5 years) LCM cash flow- 4. Based on the PW analysis which option should be selected ? -The ROR for each option, answer the below questions: 1. The ROR for servert over 3 years operation equal - 2.The ROR for server2 over 4 years operation equal - 3. The ROR for server3 over 5 years operation equal - Server 3 150000 50,000 year 1, plus 5000 per year for years 2, 3, and 4 (gradient) ase Study Exercises se spreadsheet analysis to determine the following: If the MARR 12%, which server should be selected based on PW method to make the selection, (Hint: You have to use LCM for PW calculation answer the below questions: 70,000 maximum for years 5 on, even if the server is replaced 5

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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PEFORMING ROR ANALYSIS FOR 3D PRINTER AND IIOT TECHNOLOGY
Background
Software used in 3D printer systems manufactured by Spectrum LASER Corp. is currently able to automatically develop hollows, shells, and "tree
supports to save development time. Network printing for use on multiple machines and at different locations globally is available. New software,
called JIT II, is being beta tested that will allow lloT-type (Industrial Internet of Things) connections between machines at distant locations. When onb
oard monitoring sensors detect that a part is about to fail, or it is time to replace one of several high-profile parts, the JIT Il software will
automatically queue the part's manufacturing code onto a 3D printer that is detected to be locally idle or ready. The company believes it can design
and produce the JIT Il software, the 3D printers, and the accompanying computer equipment necessary to place this technology in a wide variety of
harsh environments-chemically toxic to humans, in flight, underground in mines, on the ocean floor, in war-torn areas, etc.
Information
For this case, we will analyze the available computers that can provide the server function necessary to make this interlinking available and
successful. The first cost and other parameter estimates, including expected contribution to annual net cash flow, are summarized below.
First cost, $
Net cash flow, $/year
Life, years
Server 1
100,000
35,000
3
Server 2
100,000
25000
1. The PW for server 1 (3 years) LCM cash flow-
2. The PW for server 2 (4 years) LCM cash flow-
3. The PW for server 3 (5 years) LCM cash flow-
4. Based on the PW analysis which option should be selected?
Case Study Exercises
Use spreadsheet analysis to determine the following:
4
B- The ROR for each option, answer the below questions:
1.The ROR for server1 over 3 years operation equal -
2. The ROR for server2 over 4 years operation equal -
3. The ROR for server3 over 5 years operation equal -
4. Based on the ROR for each option which option we should select?
Server 3
150000
50,000 year 1, plus 5000 per
year for years 2, 3, and 4
(gradient)
Case Study Exercises
Use spreadsheet analysis to determine the following:
A-If the MARR = 12%, which server should be selected based on PW method to make the selection, (Hint: You have to use LCM for PW calculation
s) answer the below questions:
70,000 maximum for years
5 on, even if the server is
replaced
5
C-Use incremental ROR analysis between server 2 and server 3 to decide which is the best option at MARR-12%. Answer the below questions
1. As per the Descartes rule of signs for the NCF between servers 283, what is the maximum number of real_number Delta_i" that exist?
2. As per the Norstroms criterion, is there a one real-positive Delta_* exist (enter yes or no)?
3. What is the value of Delta_ between server 2 & 3 if exist?
4. Based on the incremental analysis which option we should select if incremental analysis is applicable?
Transcribed Image Text:PEFORMING ROR ANALYSIS FOR 3D PRINTER AND IIOT TECHNOLOGY Background Software used in 3D printer systems manufactured by Spectrum LASER Corp. is currently able to automatically develop hollows, shells, and "tree supports to save development time. Network printing for use on multiple machines and at different locations globally is available. New software, called JIT II, is being beta tested that will allow lloT-type (Industrial Internet of Things) connections between machines at distant locations. When onb oard monitoring sensors detect that a part is about to fail, or it is time to replace one of several high-profile parts, the JIT Il software will automatically queue the part's manufacturing code onto a 3D printer that is detected to be locally idle or ready. The company believes it can design and produce the JIT Il software, the 3D printers, and the accompanying computer equipment necessary to place this technology in a wide variety of harsh environments-chemically toxic to humans, in flight, underground in mines, on the ocean floor, in war-torn areas, etc. Information For this case, we will analyze the available computers that can provide the server function necessary to make this interlinking available and successful. The first cost and other parameter estimates, including expected contribution to annual net cash flow, are summarized below. First cost, $ Net cash flow, $/year Life, years Server 1 100,000 35,000 3 Server 2 100,000 25000 1. The PW for server 1 (3 years) LCM cash flow- 2. The PW for server 2 (4 years) LCM cash flow- 3. The PW for server 3 (5 years) LCM cash flow- 4. Based on the PW analysis which option should be selected? Case Study Exercises Use spreadsheet analysis to determine the following: 4 B- The ROR for each option, answer the below questions: 1.The ROR for server1 over 3 years operation equal - 2. The ROR for server2 over 4 years operation equal - 3. The ROR for server3 over 5 years operation equal - 4. Based on the ROR for each option which option we should select? Server 3 150000 50,000 year 1, plus 5000 per year for years 2, 3, and 4 (gradient) Case Study Exercises Use spreadsheet analysis to determine the following: A-If the MARR = 12%, which server should be selected based on PW method to make the selection, (Hint: You have to use LCM for PW calculation s) answer the below questions: 70,000 maximum for years 5 on, even if the server is replaced 5 C-Use incremental ROR analysis between server 2 and server 3 to decide which is the best option at MARR-12%. Answer the below questions 1. As per the Descartes rule of signs for the NCF between servers 283, what is the maximum number of real_number Delta_i" that exist? 2. As per the Norstroms criterion, is there a one real-positive Delta_* exist (enter yes or no)? 3. What is the value of Delta_ between server 2 & 3 if exist? 4. Based on the incremental analysis which option we should select if incremental analysis is applicable?
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