Freeport Brothers have recently purchased a process management system. Cabling installed in the plant connects data collection nodes to a central server. The costs of this system included the following: Five data collection nodes S4500 each New server Se000 60-metre cable $11.40 per metre Cabling hardware $188 $1190 per node Node software Server software $1950 10 hours of hardware installer time $20 per hour 25 hours of software installer time S60 per hour If Freeport Brothers wanted to calculate a replacement interval for such a process management system, what would be the capital cost for the first year at a depreciation rate of 30 percent?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Freeport Brothers have recently purchased a process management
system. Cabling installed in the plant connects data collection nodes to a
central server. The costs of this system included the following:
Five data collection nodes
$4500 each
New server
$6000
60-metre cable
$11.40 per metre
Cabling hardware
$188
Node software
$1190 per node
Server software
$1950
10 hours of hardware installer time
$20 per hour
25 hours of software installer time
$60 per hour
If Freeport Brothers wanted to calculate a replacement interval for such a
process management system, what would be the capital cost for the first year
at a depreciation rate of 30 percent?
Transcribed Image Text:Freeport Brothers have recently purchased a process management system. Cabling installed in the plant connects data collection nodes to a central server. The costs of this system included the following: Five data collection nodes $4500 each New server $6000 60-metre cable $11.40 per metre Cabling hardware $188 Node software $1190 per node Server software $1950 10 hours of hardware installer time $20 per hour 25 hours of software installer time $60 per hour If Freeport Brothers wanted to calculate a replacement interval for such a process management system, what would be the capital cost for the first year at a depreciation rate of 30 percent?
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