A new robot has a first cost of $380,000, and an annual operating cost of $88,000 in years 1 and 2, increasing by $10000 per year thereafter. The salvage value of the system is $25,000 regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 14% per year, determine the ESL and the respective AW value of the system ESL: a) 1 year b) 4 years c) 5 years d) 3 years AW value of system: a) $204,860 b) $336,284 c) $97,953 d) $496,200
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A new robot has a first cost of $380,000, and an annual operating cost of $88,000 in years 1 and 2, increasing by $10000 per year thereafter. The salvage value of the system is $25,000 regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 14% per year, determine the ESL and the respective AW value of the system
ESL:
a) 1 year
b) 4 years
c) 5 years
d) 3 years
AW value of system:
a) $204,860
b) $336,284
c) $97,953
d) $496,200
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- An injection molding system has a first cost of $200,000 and an annual operating cost of $85,000 in years 1 and 2, increasing by $4,500 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 9% per year, determine the ESL and the respective AW value of the system. The ESL is year(s) and AW value of the system is $An injection molding system has a first cost of $175,000 and an annual operating cost of $95,000 inyears 1 and 2, increasing by $6,000 per year thereafter.The salvage value of the system is 25% ofthe first cost regardless of when the system is retired within its maximum useful life of 5 years.Using a MARR of11% per year, determine the ESL and the respective AW value of the system.I need the solution in handwriting The following are the cost of a system and the useful life is five years. The salvage value for depreciation purpose is equal to 25% of the hardware cost Item Cost Hardware $170,000 Training Installation $18,000 $18,000 a) What is the book value of the system at the end of year three if Straight line method is used? b) Suppose that after depreciation of the system for two years with straight line, the company decides to switch to the decline method for the reminder of the system life (depreciation rate 30%). What is the system Book Value at the end of four years? (
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