Ink Jet Printers Analysis

Ink Jet Printers
Ink jet printer works with the same logic as dot matrix printer, however the dots are made of tiny droplets of ink. If dot matrix printer create character by hit through the hammer, then ink jet printer form character by spraying the ink from tiny nozzles through an electrical field that arranges charged ink particles into characters with speed approximately 250 characters per second. The ink sprayed to the paper will also dry instantly as it absorbed into the paper and various color of ink is available. The nozzles in the print head emit a steady stream of ink drops which are electrically charged after leaving the nozzles which are guided to the paper through deflecting plates. If a droplet is not needed for the character

Pujawan (2004) define economic life as juncture or point of time where yearly total cost (consist of equivalent yearly cost of investment as well as operational and maintenance yearly cost) on minimum point, on the other hand, service life is defined as period where assets can be operated well. In a competitive industry nowadays, maintaining assets effectively will be the key success factors of competing with other industries. The life of an assets can be viewed in different perspective. The question is when to stop using existing asset. The economic life of an asset may lengthen or shorten depends on how one is prepared to spend enough money for it. Economic life of individual equipment depends fundamentally on the cash flows that can be associated with the asset like maintenance, repairs, utility consumption, and operating labor. Generally, assets economic life in a plant or business is influenced by wide range of factors such as diseconomies of scale, technology obsolesce, operating cost, product substitution, etc. (Asselbergs & Dijk,

Physical life can be well defined by the illustration if a pump worn out beyond repair due to corrosion. In other case, a limit must be set on how long the company prepared to pay in order to keep the asset in service. Thus, the company should not incur losses when it keeps continuing operating the asset. Therefore, economic life can be defined as the money saved after the assets is abandoned.
Based on the illustration given above, it can be said that physical life is always greater than or equal to economic life. In order to calculate economic life, a financial analysis regarding the cash flows and market value of assets in future years should be made by using Discounted Cash Flow Analysis, whereas the cash flow can be simply defined as.
Cash Flow=earning after tax+depreciation-investment during the year
Commonly, discounted cash flow analyzed the cash flow generated by operating an asset over its service life and compared with the asset’s initial investment outlay to see whether the money is brought in on an overall basis. In order to compare correctly time value of money, the so-called present values of future cash flows are computed by a process called discounting using formula below.