Michelin is considering going "lights-out" in the mixing area of the business that operates 24/7. Currently, personnel with a loaded cost of $480,000 per year are used to manually weigh real rubber, synthetic rubber, carbon black, oils, and other components prior to manual insertion in a Banbary mixer that provides a homogeneous blend of rubber for making tires (rubber products). New technology is available that has the reliability and consistency desired to equal or exceed the quality of blend now achieved manually. It requires an investment of $1,900,000, with $75,000 per year operational costs and will replace all the manual effort described above. The planning horizon is 8 years, and there will be a $180,000 salvage value at that time for the new technology. Marginal taxes are 25%, and the after-tax MARR is 10%. The new investment relates to the 7-Year Property Class. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Part a Your answer is incorrect. Determine the annual cost of purchasing the new technology. $ I Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±50. Attempts: 1 of 3 used Submit Answer Save for Later
Michelin is considering going "lights-out" in the mixing area of the business that operates 24/7. Currently, personnel with a loaded cost of $480,000 per year are used to manually weigh real rubber, synthetic rubber, carbon black, oils, and other components prior to manual insertion in a Banbary mixer that provides a homogeneous blend of rubber for making tires (rubber products). New technology is available that has the reliability and consistency desired to equal or exceed the quality of blend now achieved manually. It requires an investment of $1,900,000, with $75,000 per year operational costs and will replace all the manual effort described above. The planning horizon is 8 years, and there will be a $180,000 salvage value at that time for the new technology. Marginal taxes are 25%, and the after-tax MARR is 10%. The new investment relates to the 7-Year Property Class. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Part a Your answer is incorrect. Determine the annual cost of purchasing the new technology. $ I Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±50. Attempts: 1 of 3 used Submit Answer Save for Later
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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paras
Michelin is considering going "lights-out" in the mixing area of the business that operates 24/7. Currently, personnel with a loaded
cost of $480,000 per year are used to manually weigh real rubber, synthetic rubber, carbon black, oils, and other components prior to
manual insertion in a Banbary mixer that provides a homogeneous blend of rubber for making tires (rubber products). New technology
is available that has the reliability and consistency desired to equal or exceed the quality of blend now achieved manually. It requires
an investment of $1,900,000, with $75,000 per year operational costs and will replace all the manual effort described above. The
planning horizon is 8 years, and there will be a $180,000 salvage value at that time for the new technology. Marginal taxes are 25%,
and the after-tax MARR is 10%. The new investment relates to the 7-Year Property Class.
Click here to access the TVM Factor Table Calculator
Click here to access the MACRS-GDS table.
Part a
Your answer is incorrect.
Determine the annual cost of purchasing the new technology. $
I
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±50.
Attempts: 1 of 3 used Submit Answer
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.
QUAN
AIRT
NASHLE TN 370
30 KK 20
Cynther
1917 West Aven
overtare
Dattan, 64 3720
1
QUAY
S
CHI
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