AMI, Inc., IS Considering the purchase ot a digital camera tor maintenance of design specitfications by teeding digital pictures directiy into an engineering workstation where computer-aided design files can be superimposed over the digital pIctures. Dittferences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $326,000; market value at end of year six=$122,000, annual revenues = $122,000; annual expenses = $8,000; equipment life = 6 years; effective income tax rate = 25%, and after-tax MARR=8% per year. MACRS depreciation will be used with a five-year recovery period. b. Compute the PW of the equipment's ATCFs.
AMI, Inc., IS Considering the purchase ot a digital camera tor maintenance of design specitfications by teeding digital pictures directiy into an engineering workstation where computer-aided design files can be superimposed over the digital pIctures. Dittferences between the two images can
be noted, and corrections, as appropriate, can then be made by design engineers
a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $326,000; market value at end of year six=$122,000, annual revenues = $122,000; annual expenses = $8,000; equipment life = 6 years;
effective income tax rate = 25%, and after-tax MARR=8% per year. MACRS
b. Compute the PW of the equipment's ATCFs.
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