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}

An Uninterruptible Power System Used in a Small Production Facility

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