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Suppose that you have just completed the mechanical design of a high-speed automated palletizer that has an investment cost of S3,100,000. The existing palletizer is quite old and has no salvage value. The market value for the new palletizer is estimated to be $210,000 after seven years. One million pallets will be handled by the palletizer each year during the seven-year expected project life. What net savings per pallet (i.e, total savings less expenses) will have to be generated by the palletizer to justify this purchase in view of a MARR of 19% per year? Use the AW method A Click the icon to view the interest and annulty table for discrete compounding when the MARR is 19% per year. The net savings required to be generated by the new palletizer to justify its purchase are S per pallet. (Round to the nearest cent)

Suppose that you have just completed the mechanical design of a high-speed automated palletizer that has an investment cost of S3,100,000. The existing palletizer is quite old and has no salvage value. The market value for the new palletizer is estimated to be $210,000 after seven years. One million pallets will be handled by the palletizer each year during the seven-year expected project life. What net savings per pallet (i.e, total savings less expenses) will have to be generated by the palletizer to justify this purchase in view of a MARR of 19% per year? Use the AW method A Click the icon to view the interest and annulty table for discrete compounding when the MARR is 19% per year. The net savings required to be generated by the new palletizer to justify its purchase are S per pallet. (Round to the nearest cent)

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
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Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...
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Suppose that you have just completed the mechanical design of a high-speed automated palletizer that has an investment cost of S3,100,000. The existing palletizer is quite old and has no salvage value. The market value for the new palletizer is estimated to be $210,000 after seven years. One million pallets will be handled by the palletizer each year during the seven-year expected project life. What net savings per pallet (i.e, total savings less expenses) will have to be generated by the palletizer to justify this purchase in view of a MARR of 19% per year? Use the AW method. A Click the Icon to view the interest and annulty table for discrete compounding when the MARR is 19% per year The net savings required to be generated by the new palletizer to justify its purchase are S per pallet. (Round to the nearest cent)
Transcribed Image Text:Suppose that you have just completed the mechanical design of a high-speed automated palletizer that has an investment cost of S3,100,000. The existing palletizer is quite old and has no salvage value. The market value for the new palletizer is estimated to be $210,000 after seven years. One million pallets will be handled by the palletizer each year during the seven-year expected project life. What net savings per pallet (i.e, total savings less expenses) will have to be generated by the palletizer to justify this purchase in view of a MARR of 19% per year? Use the AW method. A Click the Icon to view the interest and annulty table for discrete compounding when the MARR is 19% per year The net savings required to be generated by the new palletizer to justify its purchase are S per pallet. (Round to the nearest cent)
ose that you have just completed the mechanical desi 000 after seven years. One million palets will be hand ww of a MARR of 19% per year? Use the AW method. salvage value The market value for the ngw palefizer is entie penses) will have to be generated by the paletizer to jusily thi Discrele Compouniling: 19% Click the icon to view the interest and annuity table for Single Poyment Compotend Amount Factor To Find F Giyan P Uanitom Series Compound Sinking Present Worthi Factor To Find PN To Had F Given f Capital Recovery Factor net savings required to be generated by the new pallet Present Worth Fector Factor To Find P Given u To Flod A Glven P Geven A 1.1900 0 6466 1.1900 0.8403 1.0000 0.8403 1.0000 0.4566 0 2773 2. 2. 1900 1 5465 2.1399 1.4161 0.7062 3 16852 0.5934 3.6061 0.4673 4 2.0053 0.4987 5.2913 2.6386 0.1890 0.3790 3 0576 0.13/1 0.3271 0 2933 2.3864 0.4190 7.2966 6 2.8398 0.3521 9.6830 3.4098 0.1033 7. 3.3793 0.2959 12.5227 3.7057 0 0799 0.2699 8 4.0214 0.2487 15.9020 3 9544 0.0629 0.2529 0 0502 0.0405 0.2090 0.2402 19.9234 24.7089 4. 1633 4.3389 4.7854 5 6947 6.7767 10 0.1756 0.2305 11 0.0329 30.4035 37.1802 0.1476 44865 0.2229 0 1240 0. 1042 12 8.0642 46105 0.0269 0.2169 13 9.5964 45 2445 47147 0.0221 0.2121 14 11.4198 0.0876 54,8409 4,8023 0:0182 0.2082 0.0736 0.0618 0.0520 15 13.5895 66.2607 4 8759 00151 0.2051 0.2025 4.9377 4.9897 0.0125 0.0104 16 16.1715 79.8502 17 19.2441 96.0218 0.2004 Print Done Enter your answer in the answer box.
Transcribed Image Text:ose that you have just completed the mechanical desi 000 after seven years. One million palets will be hand ww of a MARR of 19% per year? Use the AW method. salvage value The market value for the ngw palefizer is entie penses) will have to be generated by the paletizer to jusily thi Discrele Compouniling: 19% Click the icon to view the interest and annuity table for Single Poyment Compotend Amount Factor To Find F Giyan P Uanitom Series Compound Sinking Present Worthi Factor To Find PN To Had F Given f Capital Recovery Factor net savings required to be generated by the new pallet Present Worth Fector Factor To Find P Given u To Flod A Glven P Geven A 1.1900 0 6466 1.1900 0.8403 1.0000 0.8403 1.0000 0.4566 0 2773 2. 2. 1900 1 5465 2.1399 1.4161 0.7062 3 16852 0.5934 3.6061 0.4673 4 2.0053 0.4987 5.2913 2.6386 0.1890 0.3790 3 0576 0.13/1 0.3271 0 2933 2.3864 0.4190 7.2966 6 2.8398 0.3521 9.6830 3.4098 0.1033 7. 3.3793 0.2959 12.5227 3.7057 0 0799 0.2699 8 4.0214 0.2487 15.9020 3 9544 0.0629 0.2529 0 0502 0.0405 0.2090 0.2402 19.9234 24.7089 4. 1633 4.3389 4.7854 5 6947 6.7767 10 0.1756 0.2305 11 0.0329 30.4035 37.1802 0.1476 44865 0.2229 0 1240 0. 1042 12 8.0642 46105 0.0269 0.2169 13 9.5964 45 2445 47147 0.0221 0.2121 14 11.4198 0.0876 54,8409 4,8023 0:0182 0.2082 0.0736 0.0618 0.0520 15 13.5895 66.2607 4 8759 00151 0.2051 0.2025 4.9377 4.9897 0.0125 0.0104 16 16.1715 79.8502 17 19.2441 96.0218 0.2004 Print Done Enter your answer in the answer box.
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