2. Proposal for Decommissioning and Replacement of Automated Cutting Device Fernando Cabrera Shahid Lakhwani Fred Mazzeo Leah Smith Valerie Volpe

3. Introduction: n Air n Air Cruisers Company: –Manufacturer –Manufacturer of: n Evacuation n Evacuation Equipment for aerospace industry –inflatable –inflatable evacuation slides –life –life jackets rafts –helicopter –helicopter floats

4. Introduction: (Contd) n Cutting Devices: –Three Choices (+ 1 old machine for reference) - Gerber GGT S-95 - CEI DCS-3500 - Gerber GGT S-3200 - Eastman Cutting Systems EC3X2

5. Cutting Devices: I CEI Corporation: DCS-3500

6. Cutting Devices: II Gerber S-3200

7. Cutting Devices: III Eastman EC3X2 Dual Gantry Cutting System

8. Initial Selection of Machines: n Initial & Maintenance costs: – available for: n Gerber (current machine) n Gerber S-3200 n CEI DCS-3500 –not available for: n Eastman EC3X2 Eastman EC3X2 not considered for purchase

9. Assumptions: n Repeatability n MARR 20% n All machines have EQUAL output n Pre-tax calculations n Ten year life cycle n Do nothing NOT an option Buyers perspective

10. Cash Flow Diagrams: Current Machine PW(i%) = I + ( X(P/F, i%, n) ) n = year of cost MARR = 20% AW(i%) = PW(i%) (A/P, i%, N) Gerber GGT-S95

11. Cash Flow Diagrams: Alternative I PW(i%) = I + ( X(P/F, i%, n) ) n = year of cost MARR = 20% AW(i%) = PW(i%) (A/P, i%, N) CEI DCS-3500

12. Cash Flow Diagrams: Alternative II MARR = 20% PW (i%) = I + X(P/A, i%, N) I = Initial investment X = Annuity value N = time in Years AW(i%) = PW(i%) (A/P, i%, N) Gerber S-3200

13. Present Worth, Annual Worth: I n Current Machine: –Gerber GGT-S95: n PW (10%) = - $ 266,240.00 n PW (20%) = - $ 259,310.00 n PW (30%) = - $ 255,900.00 n AW (10%) = - $ 43,330.00 n AW (20%) = - $ 61,850.00 n AW (30%) = - $ 82,770.00

14. Present Worth, Annual Worth: II n Alternative I: –CEI, DCS-3500: n PW (10%) = - $ 244,980.00 n PW (20%) = - $ 213,180.00 n PW (30%) = - $ 193,990.00 n AW (10%) = - $ 39,860.00 n AW (20%) = - $ 50,850.00 n AW (30%) = - $ 62,750.00

15. Present Worth, Annual Worth: III n Alternative II: –Gerber S-3200: n PW (10%) = - $ 191,928.00 n PW (20%) = - $ 176,701.00 n PW (30%) = - $ 168,114.00 n AW (10%) = - $ 31,235.00 n AW (20%) = - $ 42,147.00 n AW (30%) = - $ 54,379.00

16. Summary: Annual Worth Present Worth Therefore Choose Gerber S-3200 to Minimize Costs

17. Questions ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?