3. Machine A costs $2,000, has zero salvage value at any time, and has an associated labor of $11.4 for each piece produced on it. Machine B costs $36,000, has zero salvage value at any time, and has an associated labor cost of $8.3. Neither machine can be used except to produce the produce described. If the interest rate is 6% and the annual rate of production is 3,000 units, how many years will it take for the cost of the two machines to break even?
3. Machine A costs $2,000, has zero salvage value at any time, and has an associated labor of $11.4 for each piece produced on it. Machine B costs $36,000, has zero salvage value at any time, and has an associated labor cost of $8.3. Neither machine can be used except to produce the produce described. If the interest rate is 6% and the annual rate of production is 3,000 units, how many years will it take for the cost of the two machines to break even?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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![3. Machine A costs $2,000, has zero salvage value at any time,
and has an associated labor of $11.4 for each piece produced
on it. Machine B costs $36,000, has zero salvage value at any
time, and has an associated labor cost of $8.3. Neither machine
can be used except to produce the produce described. If the
interest rate is 6% and the annual rate of production is 3,000
units, how many years will it take for the cost of the two
machines to break even?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5db4d39e-f5d7-44a5-bf32-77bce6e98171%2F69966543-06db-4b39-af12-587a20924088%2Fbx1mrc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Machine A costs $2,000, has zero salvage value at any time,
and has an associated labor of $11.4 for each piece produced
on it. Machine B costs $36,000, has zero salvage value at any
time, and has an associated labor cost of $8.3. Neither machine
can be used except to produce the produce described. If the
interest rate is 6% and the annual rate of production is 3,000
units, how many years will it take for the cost of the two
machines to break even?
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