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)
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
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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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)

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
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