Quiz6_Spring08 - I ~ C , , \ I ~~~f )-\-' t> I...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
CHEE 5369 / 6369 Quiz # 6 (Closed book) Tuesday February 26, 2008 Biotech, a medical imaging and modeling company, must purchase a bone cell analysis system for use by a team of bioengineers and mechanical engineers studying bone density in athletes. This particular part of a 3 - y ear contract with the NBA will provide a gross income of $100,000 per year. The effective tax rate _ i U S%. The following information is given: - --- First cost = $150,000 Operating expenses = $30,000 per year MACRS recovery = 5 y ears The unit will be sold after 3"' y ears at a price of $1. 3 .0 - l !!QO (MACRS depreciation rates for n = 5 are 20%, 32%,19.2%,11 . 52%,11.52%, and 5.76% for years 1 to 6, respectively) G 1 - - - - -\ \ o (j ,( lC ' Jo I '/r ~ -= - \ '$1 ) 0 0 0 , E ~ $ 30, o uc + d . 2 _ . - L L ~ _ ~ __ ~ f ( ) 0 (j I I S C ,Cd O I , ; _ ZO 3 0 / 0 C i o I \LO /WO 1 100 ,000 3 0,Oc6 C / O /O OO Z , , ) z . l/ z so c >O ' 7 L . , O VO I )OC , t l OO ~ O I OOO 2 .. 2,D() U ~ , 1 ' Ie 12 - "' l ~ :t . :>! _ LO O 1 100 , 000 ,0,, , , ,0 \2-'i > OV\ ) Y ,, ~(T l Z - , O ~S/ q ' L j D i 4'\ l d\~1 \1l -- ~ ( ) !" i ; (, ~ i ) / . oS - 1r o \ C ( ) LP \ . {( ) 0 f I f I - -' ------ - - - TIC h) C J r-i - ro. . )( . , e. ~
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: I ~ C , , \ I ~~~f )-\-' t> I <, C8 f\-Tc . < . ) / . ~\ ~ , < ; r Q ~: . ~ \ ~ ( D C ;-~ ~ l2 . .. C > _ ~-. !~ ' 30 __ ~ _ ~ ~ i . ~ ~ : : ~ ~ _ ~ ~ ~ : ~-( ! ' ~ V-:: :-\ S D / O ' \-S ( o CX)O( ~ I /lCO/ t l j 1) o f-lo t /;) 00 (( l IF , } ( ) "/o, 2. ) f-1' S , : > zoo(}ff ( 0/ /)/ 3) ~ vJ : : '-' \ ~ ,00 +-S DU e > O . <tOq l) +-(02 .. /3(1 ( ) l o . ~"Gl a lf) ' +-S ' ~ 2 O C ) ( . 7$ " /3 ) ~C n 89q~ Using an after tax MARR of 10% as the appropriate interest rate, calculate the present worth (PW) and the annual worth (AW) of CF AT for the 3-year contract . (f I H :: : . ( 1 1- E-lAx t 1 >t " S P \ " \-\50 00 S lo 000 C o 2-30 ( ) \ S SLo U ~...
View Full Document

Ask a homework question - tutors are online