A Manufacturer of Printed Circuit Boards Is Considering Purchasing a New

question 3

Essay

A manufacturer of printed circuit boards is considering purchasing a new surface mount technology component placement system. Two machines are under consideration and the following information is prepared for the economic evaluation. If the company's after- tax MARR of 12% per year and MACRS with a 7- year recovery period is used, determine which alternative is preferred on the basis of their after- tax annual worth. Assume an effective tax of 35% per year.
$\begin{array}{l|c|r}\hline \text { chine } & Q & \mathrm{R} \\\hline \mathrm{t} \text { costs } & \$ 380,000 & \$ 395 \\\hline \text { annualrevenue } & \$ 150,000 \text { in year 1, increasingby } \$ 500 \text { per } & \$ 152, \\&\text { year thereafter }\\\hline \text { rket value at theend of the useful life } & \$ 4000 &0 \\\hline \text {, years } &8& 10 \\\hline\end{array}$ $\begin{array}{l|c|r}\hline \text { chine } & Q & \mathrm{R} \\\hline \mathrm{t} \text { costs } & \$ 380,000 & \$ 395 \\\hline \text { annualrevenue } & \$ 150,000 \text { in year 1, increasingby } \$ 500 \text { per } & \$ 152, \\&\text { year thereafter }\\\hline \text { rket value at theend of the useful life } & \$ 4000 &0 \\\hline \text {, years } &8& 10 \\\hline\end{array}$

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Definitions:

PET

Positron Emission Tomography, a type of imaging test that helps reveal how your tissues and organs are functioning, often used in medical diagnoses.

MRI

Magnetic Resonance Imaging, a diagnostic technique that uses magnetic fields and radio waves to produce detailed images of the body's internal structures.

Diffusion of Responsibility

A phenomenon where individuals in a group are less likely to take action or feel a sense of responsibility because the responsibility is spread across the entire group.

Distressing Situation

An event or circumstance that causes anxiety, sorrow, or pain, often triggering emotional or psychological stress.