A carton packaging manufacturer considers 2 alternative machines in its production process, namely automatic machines and semi-automatic machines. The price of the automatic machine is Rp. 23 billion with an estimated salvage value of Rp. 4M after 10 years. If an automatic machine is selected, an operational cost of Rp. 12 million per hour and a maintenance fee of IDR 3.5 billion per year. While the engine output is 8 tons per hour. Semi-automatic machines can be purchased for Rp. 8M with an estimated useful life of 5 years, without salvage value. If a semi-automatic machine is selected, an operational cost of Rp. 24 million per hour and a maintenance fee of Rp. 1.5M per year. While the engine output is 6 tons per hour. Question : If the MARR used is 10%, calculate: a. How many tons of product must be produced each year so that automatic machines are more economical than semi-automatic machines? b. If the company decides to produce 1,500 tonnes per year, which machine should it choose?
A carton packaging manufacturer considers 2 alternative machines in its production process, namely automatic machines and semi-automatic machines.
The price of the automatic machine is Rp. 23 billion with an estimated salvage value of Rp. 4M after 10 years. If an automatic machine is selected, an operational cost of Rp. 12 million per hour and a maintenance fee of IDR 3.5 billion per year. While the engine output is 8 tons per hour.
Semi-automatic machines can be purchased for Rp. 8M with an estimated useful life of 5 years, without salvage value. If a semi-automatic machine is selected, an operational cost of Rp. 24 million per hour and a maintenance fee of Rp. 1.5M per year. While the engine output is 6 tons per hour.
Question :
If the MARR used is 10%, calculate:
a. How many tons of product must be produced each year so that automatic machines are more economical than semi-automatic machines?
b. If the company decides to produce 1,500 tonnes per year, which machine should it choose?
Step by step
Solved in 4 steps
