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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 21%, an after-tax MARR of 18%, and SL depreciation. Assume that each has a life of five years and no BV or MV.
First Degree Cost A $10,000 B $16,000 C $22,000 D $31,000
Annual Labor Expense $8,500 $6,500 $5,000 $3,500
Annual Power and Maintenance Expense $400 $700 $1,100 $1,700
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Calculate the AW value for the Degree A
AWA (18%) = $(Round to the nearest dollar.)
Discrete Compounding; i=18% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA A/F 1.1800 0.8475 1.0000 0.8475 1.0000 1.3924 0.7182 2.1800 1.5656 0.4587 1.6430 0.6086 3.5724 2.1743 0.2799 1.9388 0.5158 5.2154 2.6901 0.1917 2.2878 0.4371 7.1542 3.1272 0.1398 2.6996 0.3704 9.4420 3.4976 0.1059 3.1855 0.3139 12.1415 3.8115 0.0824 3.7589 0.2660 15.3270 4.0776 0.0652 4.4355 0.2255 19.0859 4.3030 0.0524 5.2338 0.1911 23.5213 4.4941 0.0425
Capital Recovery Factor To Find A Given P AIP 1.1800 0.6387 0.4599 0.3717 0.3198 0.2859 0.2624 0.2452 0.2324 0.2225
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