A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information. Determine which is best by after-tax analysis using an income tax rate of 29%, an after-tax MARR of 16%, and SL depreciation. Assume that each has a life of six years and no BV or MV. D Degree A B C D Click the icon to view the interest and annuity table for discrete compounding when the MARR is 16% per year. First Cost $12,000 13,000 20,000 27,000 Annual Labor Expense $8,500 7,500 4,000 2,500 Annual Power and Maintenance Expense $500 800 1,100 1,600

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  • Calculate the AW for the Degree A, B, C, D
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A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information. Determine which is best by after-tax analysis using an income tax rate of 29%, an after-tax MARR of 16%, and SL depreciation. Assume that each has a life of
six years and no BV or MV.
Degree
A
B
C
D
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 16% per year.
More Info
N
1
2
3
4
5
6
7
8
9
10
Single Payment
Compound
Amount
Factor
To Find F
Given P
FIP
1.1600
1.3456
1.5609
1.8106
2.1003
Discrete Compounding; i = 16%
Compound
Amount
Factor
To Find F
Given A
FIA
1.0000
2.1600
3.5056
5.0665
6.8771
8.9775
11.4139
14.2401
17.5185
21.3215
2.4364
2.8262
3.2784
3.8030
4.4114
Present
Worth Factor
To Find P
Given F
PIF
0.8621
0.7432
0.6407
0.5523
0.4761
0.4104
0.3538
0.3050
0.2630
0.2267
Print
Uniform Series
Present
Worth Factor
To Find P
Given A
PIA
0.8621
1.6052
2.2459
2.7982
3.2743
3.6847
4.0386
4.3436
4.6065
4.8332
Done
Sinking
Fund
Factor
To Find A
Given F
A/F
1.0000
0.4630
0.2853
0.1974
0.1454
0.1114
0.0876
0.0702
0.0571
0.0469
Capital
Recovery
Factor
To Find A
Given P
AIP
1.1600
0.6230
0.4453
0.3574
0.3054
0.2714
0.2476
0.2302
0.2171
0.2069
-
First
Cost
$12,000
13,000
20,000
27,000
X
Annual
Labor
Expense
$8.500
C
7,500
4,000
2.500
Q
Annual Power
and Maintenance
Expense
$500
800
1,100
1,600
Transcribed Image Text:A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information. Determine which is best by after-tax analysis using an income tax rate of 29%, an after-tax MARR of 16%, and SL depreciation. Assume that each has a life of six years and no BV or MV. Degree A B C D Click the icon to view the interest and annuity table for discrete compounding when the MARR is 16% per year. More Info N 1 2 3 4 5 6 7 8 9 10 Single Payment Compound Amount Factor To Find F Given P FIP 1.1600 1.3456 1.5609 1.8106 2.1003 Discrete Compounding; i = 16% Compound Amount Factor To Find F Given A FIA 1.0000 2.1600 3.5056 5.0665 6.8771 8.9775 11.4139 14.2401 17.5185 21.3215 2.4364 2.8262 3.2784 3.8030 4.4114 Present Worth Factor To Find P Given F PIF 0.8621 0.7432 0.6407 0.5523 0.4761 0.4104 0.3538 0.3050 0.2630 0.2267 Print Uniform Series Present Worth Factor To Find P Given A PIA 0.8621 1.6052 2.2459 2.7982 3.2743 3.6847 4.0386 4.3436 4.6065 4.8332 Done Sinking Fund Factor To Find A Given F A/F 1.0000 0.4630 0.2853 0.1974 0.1454 0.1114 0.0876 0.0702 0.0571 0.0469 Capital Recovery Factor To Find A Given P AIP 1.1600 0.6230 0.4453 0.3574 0.3054 0.2714 0.2476 0.2302 0.2171 0.2069 - First Cost $12,000 13,000 20,000 27,000 X Annual Labor Expense $8.500 C 7,500 4,000 2.500 Q Annual Power and Maintenance Expense $500 800 1,100 1,600
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