Triple Play Innovators Corporation (TPIC) plansto offer

Chapter 17, Problem 17.66

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Triple Play Innovators Corporation (TPIC) plansto offer IPTV (Internet Protocol TV) service toNorth American customers starting soon. Performan AW analysis of the EVA series for the twoalternative suppliers available for the hardware andsoftware. Use Te = 30%, after-tax MARR = 8%, astudy period of 8 years, and SL depreciation (forsimplicity, omit the half-year convention andMACRS). Use a spreadsheet.Vendor Hong Kong VietnamFirst cost, $ 4.2 million 3.6 millionRecovery period, years 8 5Salvage value, $ 0 0GI OE, $ per year 1,500,000 in year 1; increasingby 300,000 per year up to 8 years

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