An automobile-manufacturing company is considering purchasing an industrial robot to do spot welding, which is currently done by skilled labour. The initial cost of the robot is $ 225,000 , and the annual labour savings are projected to be $ 95,000 . The robot is a Class 43 property with a CCA rate of 30%. The robot will be used for seven years, at the end of which the firm expects to sell it for $ 25,000 . The company's marginal tax rate is 35% and the after-tax MARR is 10%. Calculate the annual worth of this investment.
An automobile-manufacturing company is considering purchasing an industrial robot to do spot welding, which is currently...
An industrial engineer is considering two robots for improving efficiency in a fibre-optic manufacturing company. Robot X will have a first cost of RM88000, an annual maintenance and operation (M&O) cost of RM32000, and a RM35000 salvage value after its useful life of 6 years. A more sophisticated Robot Y will have a first cost of RM157000, an annual M&O cost of RM29800, and a RM55000 salvage value after its 6 year life. Which should be selected on the basis...
Do
part a).
Question 2 (50%) The management of a company is considering replacing a number of old looms in the mill's weave room. The looms to be replaced are two 220-cm President looms, sixteen 135-cm President looms, and twenty-two 185-cm Draper X-P2 looms. The company may either replace the old looms with new ones of the same kind or buy 21 new shutterless Pignone looms. The first alternative requires the purchase of 40 new President and Draper looms and...
The Balas Manufacturing Company is considering buying an overhead pulley system. The new systern has a purchase price of $150,000, an estimated useful life and MACRS class life of five years, and an estimated salvage value of $10,000. The system is expected to enable the company to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective products made. A total annual savings of $95,000 will be realized if the new pulley...
The Armstrong Manufacturing Company is considering two
projects, however only one project can be chosen. Prepare an
incremental analysis using the data provided. Include internal rate
of return (IRR) for each alternative. Prepare a report to be
presented to vice-president of manufacturing with your
recommendation. The company uses a depreciation. The company’s
effective income tax rate is 35%.
The Armstrong Manufacturing Company is considering two projects, however only one project can be chosen. Prepare an incremental analysis using the data...
Investment Evaluation Analysis Widget Company is considering upgrading its manufacturing equipment. The Vice-President of Production has identified three possible actions Widget could take to accomplish the upgrade, though none is required. One option would upgrade their current equipment and the other two options would replace the existing equipment with purchases of new equipment. The review committee has asked you to review each of the options to identify relevant cost data and to prepare a schedule comparing the three options to...