A CNC milling machine has a purchase price of £100,000 and it is considered from an accounting standpoint to be depreciated to zero value over a period of 6 years. If the machine is to be used for 2 shifts with each shift working for 37 hours/week and 45 weeks/ year. What is the machine cost/ hr which must be charged in order to amortise the costs over the 6 year period? Express your answer in £/ hour but just write the numerical answer rounded up to the nearest penny. To make the calculation simpler ignore the effects of compound interest, you can assume that over the 6 year period you will be required to pay back borrowed money for the machine purchase amounting to 6% interest on the sum borrowed.
A CNC milling machine has a purchase price of £100,000 and it is considered from an accounting standpoint to be depreciated to zero value over a period of 6 years. If the machine is to be used for 2 shifts with each shift working for 37 hours/week and 45 weeks/ year. What is the machine cost/ hr which must be charged in order to amortise the costs over the 6 year period? Express your answer in £/ hour but just write the numerical answer rounded up to the nearest penny. To make the calculation simpler ignore the effects of compound interest, you can assume that over the 6 year period you will be required to pay back borrowed money for the machine purchase amounting to 6% interest on the sum borrowed.
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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Transcribed Image Text:A CNC milling machine has a purchase price of £100,000 and it is considered from an accounting
standpoint to be depreciated to zero value over a period of 6 years. If the machine is to be used for 2
shifts with each shift working for 37 hours/week and 45 weeks/ year. What is the machine cost/ hr which
must be charged in order to amortise the costs over the 6 year period? Express your answer in £/ hour
but just write the numerical answer rounded up to the nearest penny.
To make the calculation simpler ignore the effects of compound interest, you can assume that over the 6
year period you will be required to pay back borrowed money for the machine purchase amounting to 6%
interest on the sum borrowed.
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