No excel, please, thank you dearly Angle Iron (AI), Inc. just purchased a new angle bending machine for foundation bases of their storagetank division. The company expects to bend 3,000 beams at $100 dollars a beam revenue in each of thefirst 2 years while it is learning how to use the equipment. After this 24-month run-in period, it anticipatescapabilities to bend 6,000 beams at $150 dollars a beam revenue for the next 8 years before it will thenhave to replace the equipment or vacate the product line. Assume that the MARR is 15% per year.a. Draw and label the cash flow diagramb. What is the present worth of the expected angle iron revenue?c. If AI purchased this equipment new for $1 Million Dollars; what was the pay-back period in years forthis investment. (Hint: Find the equivalent annual worth for use in determining)

1. Revenue for first two years is 3000 beams * 100 per beam= $300,000 Revenue for next 8 years is…

Answered: Angle Iron (AI), Inc. just purchased a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section: Chapter Questions

Problem 41P: At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 =...

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