Triple Play Innovators Corporation (TPIC) plans to offer IPTV (Internet Protocol TV) service to North American customers starting soon. Perform an AW analysis of the EVA series for the two alternative suppliers available for the hardware and software. Use Te = 30%, after-tax MARR = 8%, a study period of 8 years, and SL depreciation (for simplicity, omit the half-year convention and MACRS). Use a spreadsheet.
Depreciation is SL: Hong Kong: 4.2 million/8 = $525,000
Vietnam: 3.6 million/5 = $720,000
The Vietnam supplier indicates a larger AW of EVA; however, the difference is small
given the size of the order.
(Note: The CFAT series and AW of CFAT are shown for information only.)
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