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A businessman wants to increase production capacity to meet the demand of customers. Therefore, 6 new machines with similar production capacity were considered. The details of the new machines are as follows.MUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT Details of the 6 new machines that will be purchased more Comparative point Initial investment (million baht) Operation cost Salvage value (million baht) Machine life (years) More details 1 -4.0 -0.043 million baht per month 0.3 3 2 -6.6 -0.54 million baht per year 0.3 6 3 What decisions should this businessman make? Machines -9.1 -0.2 million baht per quarter 0.38 3 3 6 KMUTT KMUIT KMUTI KMUIT KMUTT - Minimum required rate of return (MARR) 12% per annum, semi-annual compounding MUTT - One machine is enough to increase production capacity.UTT KMUTT KMUTT KMUTT 4 -7.3 -0.35 million baht per 6 month 0.42 4 5 -2.5 -0.105 million baht per quarter 0.2 6 -4.2 -0.53 million baht per year 0.29 - If this businessperson wants to know the results of the analysis through the Comparative Rate of Return (ROR) method. KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT

A businessman wants to increase production capacity to meet the demand of customers. Therefore, 6 new machines with similar production capacity were considered. The details of the new machines are as follows.MUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT Details of the 6 new machines that will be purchased more Comparative point Initial investment (million baht) Operation cost Salvage value (million baht) Machine life (years) More details 1 -4.0 -0.043 million baht per month 0.3 3 2 -6.6 -0.54 million baht per year 0.3 6 3 What decisions should this businessman make? Machines -9.1 -0.2 million baht per quarter 0.38 3 3 6 KMUTT KMUIT KMUTI KMUIT KMUTT - Minimum required rate of return (MARR) 12% per annum, semi-annual compounding MUTT - One machine is enough to increase production capacity.UTT KMUTT KMUTT KMUTT 4 -7.3 -0.35 million baht per 6 month 0.42 4 5 -2.5 -0.105 million baht per quarter 0.2 6 -4.2 -0.53 million baht per year 0.29 - If this businessperson wants to know the results of the analysis through the Comparative Rate of Return (ROR) method. KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A businessman wants to increase production capacity to meet the demand of customers. Therefore, 6 new machines with similar production capacity were considered. The details of the new machines are as follows.MUTT KMUTT Details of the 6 new machines that will be purchased more KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT Comparative point Initial investment (million baht) Operation cost Salvage value (million baht) Machine life (years) More details 1 -4.0 -0.043 million baht per month 0.3 3 2 -6.6 -0.54 million baht per year 0.3 What decisions should this businessman make? 3 6 Machines -7.3 -0.35 million baht per 6 month 0.42 4 4 -2.5 -0.105 million baht per quarter 0.2 5 -9.1 -0.2 million baht per quarter 0.38 3 6 3 KMUTT KMUTT KMUTT KMUTT KMUTT - Minimum required rate of return (MARR) 12% per annum, semi-annual compounding MUTT - One machine is enough to increase production capacity.UTT KMUTT KMUTT KMUTT - If this businessperson wants to know the results of the analysis through the Rate of Return (ROR) method. 6 -4.2 -0.53 million baht per year 0.29 the Comparative T KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUITT KMUTT
Transcribed Image Text:A businessman wants to increase production capacity to meet the demand of customers. Therefore, 6 new machines with similar production capacity were considered. The details of the new machines are as follows.MUTT KMUTT Details of the 6 new machines that will be purchased more KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT Comparative point Initial investment (million baht) Operation cost Salvage value (million baht) Machine life (years) More details 1 -4.0 -0.043 million baht per month 0.3 3 2 -6.6 -0.54 million baht per year 0.3 What decisions should this businessman make? 3 6 Machines -7.3 -0.35 million baht per 6 month 0.42 4 4 -2.5 -0.105 million baht per quarter 0.2 5 -9.1 -0.2 million baht per quarter 0.38 3 6 3 KMUTT KMUTT KMUTT KMUTT KMUTT - Minimum required rate of return (MARR) 12% per annum, semi-annual compounding MUTT - One machine is enough to increase production capacity.UTT KMUTT KMUTT KMUTT - If this businessperson wants to know the results of the analysis through the Rate of Return (ROR) method. 6 -4.2 -0.53 million baht per year 0.29 the Comparative T KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUTT KMUITT KMUTT
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