FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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?___________

CASE STUDY
PEFORMING ROR ANALYSIS FOR 3D PRINTER AND IIOT TECHNOLOGY
Background
Software used in 30 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 on
board monitoring sensors detect that a part is about to fail, or it is time to replace one of several high-profile parts, the JITII 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 II 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.
Server 1
Server 2
Server 3
First cost 5
100,000
100,000
150000
50,000 year 1. plus 5000 per
year for years 2, 3, and 4
(gradient)
Net cash flow, siyear
35,000
25000
70,000 maximum for years
5 on, even if the server is
replaced
ife, years
3
4.
rase Stud Fxercises
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Transcribed Image Text:CASE STUDY PEFORMING ROR ANALYSIS FOR 3D PRINTER AND IIOT TECHNOLOGY Background Software used in 30 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 on board monitoring sensors detect that a part is about to fail, or it is time to replace one of several high-profile parts, the JITII 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 II 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. Server 1 Server 2 Server 3 First cost 5 100,000 100,000 150000 50,000 year 1. plus 5000 per year for years 2, 3, and 4 (gradient) Net cash flow, siyear 35,000 25000 70,000 maximum for years 5 on, even if the server is replaced ife, years 3 4. rase Stud Fxercises
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