Question: 1. Suppose that the average utilization of the CVD tool increased to 90%; however, the operating hours of the fabrication plant were decreased from 168 hours to 150 hours. What are the corresponding impacts on the PW and breakeven point, respectively?
2. A specialized automatic machine costs $300,000 and is expected to save $111,837.50 per year while in operation. Using a 12% interest rate, what is the discounted payback period?