0 0 JACLE, an industrial company in Jubail, is considering to install a new automated plastic-molding press system. Four

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0 0 Jacle An Industrial Company In Jubail Is Considering To Install A New Automated Plastic Molding Press System Four 1 (82.26 KiB) Viewed 84 times

0 0 JACLE, an industrial company in Jubail, is considering to install a new automated plastic-molding press system. Four (4) different alternatives are available. Relevant information for these mutually exclusive alternatives are provided below. MARR=18%. Applying the Engineering Economic Analysis Method, which alternative would you recommend? Alternatives D Amount of Investment - Year 0 (5) 3,000,000 6,000,000 4,000,000 2,500,000 Amount of Investment - Year 1 (5) 0 2,500,000 Production Capacity (units per year) 1,500,000 2,100,000 1,800,000 2,200,000 Machine Efficiency (%) 95 97 98 96 Selling Price (5 per unit) 2.50 2.50 2.50 2.50 Variable Cost ($ per unit) 1.20 0.60 0.90 0.80 Annual Fixed Costs ($) 450,000 120,000 210,000 100,000 Residual Value (S) 600,000 1,200,000 800,000 920,000 Useful Life (years) 10 10 10 10 Note: The first annual revenue and annual costs for Alternative D will occur at the end of year 2. Show Calculation Use the economic measure in the next table 1. Discounted Payback Period dPBP 2. Present Worth Analysis PWA 3. Future Worth Analysis FWA 4. Annual Equivalence AE IRR 5. Rate of Return - Internal Rate of Return 6. Compound Annual Growth Rate Method 7. Other Rate of Return Method CAGR ROR ACA 8. Annual Cost Analysis 9. Break-even Analysis 10. Risk Analysis BE