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A consulting engineer firm is considering installing a 3D PRINTER system at a cost of $300000....

A consulting engineer firm is considering installing a 3D PRINTER system at a cost of $300000. With this, the company will have an expectation to save $250000 per year. The training and opearting costs is about $50000 per year. The system has a 5-years useful life and can be depreciated as Capital Cost Allowance (CCA) class 43 property with d=30%. The system will have an estimated salvage value of $5000. The firm's marginal tax rate is 40%.

a) determine the net-after-tax cash flows for the investiment year by year;

b) determine weather the project is acceptable if the firm's MARR is 15%.

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Answer #1

a.

b. Since IRR is greater than MARR of 15%, the project is acceptable to the firm

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