1. Compare the difference between purchasing and operating of machine operated as given table (Minimum Acceptable Rate of Table 4.13 Cost estimation of integrated machine option Integrated metal casting production with core knock- Half integrated metal casting production with core knock- production without core out system. Machining will be knock-out system and Solely metal casting out system and CNC machining center outsource CNC machining center (outsource) Purchasing cost, $ 500000 220000 150000 Annual maintenance, salary and operating cost (together with outsourcing cost), $ 90000 55000 10000 Annual revenue. $ 150000 75000 50000 Salvage value, $ 2000 25000 30000 5 Life years 10
1. Compare the difference between purchasing and operating of machine operated as given table (Minimum Acceptable Rate of Table 4.13 Cost estimation of integrated machine option Integrated metal casting production with core knock- Half integrated metal casting production with core knock- production without core out system. Machining will be knock-out system and Solely metal casting out system and CNC machining center outsource CNC machining center (outsource) Purchasing cost, $ 500000 220000 150000 Annual maintenance, salary and operating cost (together with outsourcing cost), $ 90000 55000 10000 Annual revenue. $ 150000 75000 50000 Salvage value, $ 2000 25000 30000 5 Life years 10
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:1. Compare the difference between purchasing and operating of machine operated as given table (Minimum Acceptable Rate of Return, MARR = 10%).
Table 4.13
Cost estimation of integrated machine option
Integrated metal casting
Half integrated metal casting
Solely metal casting
production with core knock-
production with core knock- production without core
out system. Machining will be
out system and CNC
knock-out system and
CNC machining center
machining center
outsource
(outsource)
Purchasing cost, $
500000
220000
150000
Annual maintenance, salary
and operating cost (together
with outsourcing cost), $
90000
55000
10000
Annual revenue, $
150000
75000
50000
Salvage value, $
2000
25000
30000
Life years
5.
10
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