ellobanders are important machines that put cellophane bands on the necks of plastic bottles and other packages. Those cellophane bands prevent product tampering. In the case of over-the-counter medic
ellobanders are important machines that put cellophane bands on the necks of plastic bottles and other packages. Those cellophane bands prevent product tampering. In the case of over-the-counter medications, tamper resistance is absolutely necessary to ensuring consumer product integrity and safety.
In this problem you are the manager of a generic pharmaceutical manufacturer. You are faced with the problem of predicting the useful economic life of a new Cellobander, in order to provide accurate capital budgeting input to your company’s ten-year strategic plan. Here, “useful economic life” means the number of years that the machine remains in service before its depreciated value falls below 5.0000% of its original purchase price. (Afra Alharbi, 81293.202070)
Statement of the situation:
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- A new Cellobander machine will be installed at the beginning of year 1 in your manufacturing plant.
- Its original purchase price (initial value) is $7,280,000.00, and depreciation is 13.0000% per year.
- In year 6 the machine will receive a one-time refurbishment that will immediately add $560,000.00 to its value.
- Starting from year 11 the machine will begin processing a new bottle type that will require affixing bottles with a double-sized celloband, thus increasing wear and tear on the machine. As a result, at the end of year 11, depreciation will increase from 13.0000% per year to 21.0000% per year.
- Minor in-service repairs in year 13 will add $68,000.00 to the machine’s value that year.
Note: You MUST use a while loop to solve this problem. The logic statement in the while can be written as:
Worth(t) > (0.05 * Worth(1))