FootballComm LLC is a manufacturer of devices for football coaches and their coaching staffs that enables them to quickly and effectively communicate with one another during a game through a wireless sideline headset system. Currently, the company purchases all of the headsets included in their systems from a China-based supplier, but they have experienced a significant decrease in overall headset quality. To correct the problem, the company is considering producing their own headsets in-house. The company estimates that the transition will take place over 12 months. The system is expected to have an eight-year service life and produce savings and expenditures given in the table below. f the firm's MARR is 15%, use the NPW method to calculate the economic worth of producing the headsets in house. Click the icon to view the table for the savings and expenditures of the system. E Click the icon to view the interest factors for discrete compounding when MARR = 15% per year. The economic worth of producing the headsets in house is $ 10192940 thousand. (Round to the nearest whole number.)

FootballComm LLC is a manufacturer of devices for football coaches and their coaching staffs that enables them to quickly and effectively communicate with one another during a game through a wireless sideline headset system. Currently, the company purchases all of the headsets included in their systems from a China-based supplier, but they have experienced a significant decrease in overall headset quality. To correct the problem, the company is considering producing their own headsets in-house. The company estimates that the transition will take place over 12 months. The system is expected to have an eight-year service life and produce savings and expenditures given in the table below. f the firm's MARR is 15%, use the NPW method to calculate the economic worth of producing the headsets in house. Click the icon to view the table for the savings and expenditures of the system. E Click the icon to view the interest factors for discrete compounding when MARR = 15% per year. The economic worth of producing the headsets in house is $ 10192940 thousand. (Round to the nearest whole number.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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