ellobanders are important machines that put cellophane bands on the necks of

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))

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