An international semiconductor company increases their productivity by an investment l in $. The purchased equipment has a salvage value of SV of the life time which is t. The increased productivity will create an annual Revenue of AW. Use a spreadsheet to evaluate the IRR. Is the investment a good one if you assume an MARR of 18% per year? Create a graph which shows the PW as a function of the interest rate. For your calculation use the following values: I = your student ID e.q. S00024356 means l = 24356 $. SV = I * 0.15 AW = I * 0.25 t = last digit of your ID e.q. 6. If the last digit is less than 5 use 5.
|D||number of years (t)||6|
|F=PV-A||PW of the project||($1,705.76)||(Using excel PV function with rate=0.18, Nper=6, Pmt=6089,FV=3653.4)|
|VALUE OF PW AS A FUNCTION OF INTEREST RATE|
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