oftware used in 3D printer systems manufactured by Spectrum LASER Corp. is currently able to automatically develop hollows, shells, and "tree upports to save development time. Network printing for use on multiple machines and at different locations globally is available. New software, alled JIT II, is being beta tested that will allow lloT-type (industrial Internet of Things) connections between machines at distant locations. When onb and monitoring sensors detect that a part is about to fail, or it is time to replace one of several high-profile parts, the JIT Il software will utomatically queue the part's manufacturing code onto a 3D printer that is detected to be locally idle or ready. The company believes it can design nd produce the IT Il software, the 3D printers, and the accompanying computer equipment necessary to place this technology in a wide variety of arsh environments-chemically toxic to humans, in flight, underground in mines, on the ocean floor, in war-torn areas, etc. formation or this case, we will analyze the available computers that can provide the server function necessary to make this interlinking available and accessful. The first cost and other parameter estimates, including expected contribution to annual net cash flow, are summarized below. First cost, $ Net cash flow, $/year Server 1 100,000 35,000 Server 2 100,000 25000 Server 3 150000 50,000 year 1, plus 5000 per year for years 2, 3, and 4 (gradient) 70,000 maximum for years 5 on, even if the server is replaced

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
PEFORMING ROR ANALYSIS FOR 3D PRINTER AND I1OT TECHNOLOGY
Background
Software used in 3D printer systems manufactured by Spectrum LASER Corp. is currently able to automatically develop hollows, shells, and "tree
supports to save development time. Network printing for use on multiple machines and at different locations globally is available. New software,
called JIT II, is being beta tested that will allow lloT-type (Industrial Internet of Things) connections between machines at distant locations. When onb
oard monitoring sensors detect that a part is about to fail, or it is time to replace one of several high-profile parts, the JIT Il software will
automatically queue the part's manufacturing code onto a 3D printer that is detected to be locally idle or ready. The company believes it can design
and produce the JIT Il software, the 3D printers, and the accompanying computer equipment necessary to place this technology in a wide variety of
harsh environments-chemically toxic to humans, in flight, underground in mines, on the ocean floor, in war-torn areas, etc.
Information
For this case, we will analyze the available computers that can provide the server function necessary to make this interlinking available and
successful. The first cost and other parameter estimates, including expected contribution to annual net cash flow, are summarized below.
First cost, $
Net cash flow, $/year
Life, years
Server 1
100,000
35,000
3
Server 2
100,000
25000
4
Case Study Exercises
Use spreadsheet analysis to determine the following:
B- The ROR for each option, answer the below questions:
1. The ROR for server1 over 3 years operation equal -
2. The ROR for server2 over 4 years operation equal -
3. The ROR for server3 over 5 years operation equal -
4. Based on the ROR for each option which option we should select?
Server 3
150000
50,000 year 1, plus 5000 per
year for years 2, 3, and 4
(gradient)
70,000 maximum for years
5 on, even if the server is
replaced
5
Transcribed Image Text:PEFORMING ROR ANALYSIS FOR 3D PRINTER AND I1OT TECHNOLOGY Background Software used in 3D printer systems manufactured by Spectrum LASER Corp. is currently able to automatically develop hollows, shells, and "tree supports to save development time. Network printing for use on multiple machines and at different locations globally is available. New software, called JIT II, is being beta tested that will allow lloT-type (Industrial Internet of Things) connections between machines at distant locations. When onb oard monitoring sensors detect that a part is about to fail, or it is time to replace one of several high-profile parts, the JIT Il software will automatically queue the part's manufacturing code onto a 3D printer that is detected to be locally idle or ready. The company believes it can design and produce the JIT Il software, the 3D printers, and the accompanying computer equipment necessary to place this technology in a wide variety of harsh environments-chemically toxic to humans, in flight, underground in mines, on the ocean floor, in war-torn areas, etc. Information For this case, we will analyze the available computers that can provide the server function necessary to make this interlinking available and successful. The first cost and other parameter estimates, including expected contribution to annual net cash flow, are summarized below. First cost, $ Net cash flow, $/year Life, years Server 1 100,000 35,000 3 Server 2 100,000 25000 4 Case Study Exercises Use spreadsheet analysis to determine the following: B- The ROR for each option, answer the below questions: 1. The ROR for server1 over 3 years operation equal - 2. The ROR for server2 over 4 years operation equal - 3. The ROR for server3 over 5 years operation equal - 4. Based on the ROR for each option which option we should select? Server 3 150000 50,000 year 1, plus 5000 per year for years 2, 3, and 4 (gradient) 70,000 maximum for years 5 on, even if the server is replaced 5
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education