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# 1. Bailey, Inc., is considering buying a new gang punch that would allow them

Question: 1. Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of \$110,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase \$2,400 using the gang punch, but annual raw material costs would1. Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of \$110,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase \$2,400 using the gang punch, but annual raw material costs would decrease \$13,000. MARR is 5%/year.
What is the future worth of this investment?
2. A new homeowner, Ms. Dee Young, needs to decide whether to install R-11 or R-19 insulation in the attic of her new home. The insulated area is 1,550 square feet. The upgrade from R-11 to R-19 insulation costs \$0.05 per square foot. The upgraded insulation is expected to save Ms. Dee Young approximately 360 kilowatt hours of energy usage per year. The planning horizon is 25 years and electricity costs \$0.06/kWh. MARR is 9% per year.
The future worth of R-19 insulation is ?
No-1) Future worth of investment = -\$110000*(F/P, 5% ,15) (\$13000-\$2…View the full answer

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