A CNC milling machine has a purchase price of £120,000 and it is considered from an accounting standpoint to be depreciated to zero value over a period of 5 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/repay the costs over the 5 year period? To make the calculation simpler, you can assume that over the 5 year period you will be required to pay back 8% interest on the sum borrowed. Express your answer in § / hour rounded up to the nearest penny
A CNC milling machine has a purchase price of £120,000 and it is considered from an accounting standpoint to be depreciated to zero value over a period of 5 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/repay the costs over the 5 year period? To make the calculation simpler, you can assume that over the 5 year period you will be required to pay back 8% interest on the sum borrowed. Express your answer in § / hour rounded up to the nearest penny
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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A CNC milling machine has a purchase price of £120,000 and it is considered from an accounting standpoint to be depreciated to zero value over a period of 5 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/repay the costs over the 5 year period?
To make the calculation simpler, you can assume that over the 5 year period you will be required to pay back 8% interest on the sum borrowed.
Express your answer in § / hour rounded up to the nearest penny
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