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 purchasein 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 yearThe 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 desi000 after seven years. One million palets will be handww of a MARR of 19% per year? Use the AW method.salvage value The market value for the ngw palefizer is entiepenses) will have to be generated by the paletizer to jusily thiDiscrele Compouniling: 19%Click the icon to view the interest and annuity table forSingle PoymentCompotendAmountFactorTo Find FGiyan PUanitom SeriesCompoundSinkingPresentWorthi FactorTo Find PN To Had FGiven fCapitalRecoveryFactornet savings required to be generated by the new palletPresentWorth FectorFactorTo Find PGiven uTo Flod AGlven PGeven A1.19000 64661.19000.84031.00000.84031.00000.45660 27732.2. 19001 54652.13991.41610.70623168520.59343.60610.467342.00530.49875.29132.63860.18900.37903 05760.13/10.32710 29332.38640.41907.296662.83980.35219.68303.40980.10337.3.37930.295912.52273.70570 07990.269984.02140.248715.90203 95440.06290.25290 05020.04050.20900.240219.923424.70894. 16334.33894.78545 69476.7767100.17560.2305110.032930.403537.18020.1476448650.22290 12400. 1042128.0642461050.02690.2169139.596445 2445471470.02210.21211411.41980.087654,84094,80230:01820.20820.07360.06180.05201513.589566.26074 8759001510.20510.20254.93774.98970.01250.01041616.171579.85021719.244196.02180.2004PrintDoneEnter your answer in the answer box.

Annual worth od savings is denoted by SComputating the savings by equating annual worth of outflows…

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

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

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
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