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A new manutactunng facility will produce two products, each of which requires a dniling operation duning processing. Two alternative types of drilling machines (D1 and D2) are being considered for purchase Ono of these machines must be selected For the same annual demand, the annual production requirements (machine hours) and the annual operating expenses (per machine) are listed in the table below Which machine should be selected if the MARR is 18% per year? Assumptions The facility will operate 2,250 hours per year Machine availability is 85% for Machine 01 and 80% for Machine 02 The yiold of Df is 00%, and the yield of D2 is 80% Annual operating expenses are based on an assumed operabion of 2,250 hours per year, and workers are paid during any idle time of Machine Df or Machine D2 Assume repeatability Click the icon to view the allernatives description Click the icon to view the interost and annuty table for discrete compounding when 18% per year The total equivalent annual cost of owning a required number of machines 0f is $ (Round to the nearest hundreds) The total oquivalent annual cost of owning a required number of machines 02 is $ (Round to the nearest hundreds) Which machine should be selected? Choose the correct answer below O DI O D2 Data Table Product Machine 01 Machine D2 750 hours 1,550 hours 2,300 hours 24,000/machino eight yoars 7,500/machine 5,000/machine R-43 2,250 hours T-22 1,100 hours 3,350 hours 15,000machine Captal investment Useful life Annual expenses Sx years 5,500/machine 2,500/machine Market value

A new manutactunng facility will produce two products, each of which requires a dniling operation duning processing. Two alternative types of drilling machines (D1 and D2) are being considered for purchase Ono of these machines must be selected For the same annual demand, the annual production requirements (machine hours) and the annual operating expenses (per machine) are listed in the table below Which machine should be selected if the MARR is 18% per year? Assumptions The facility will operate 2,250 hours per year Machine availability is 85% for Machine 01 and 80% for Machine 02 The yiold of Df is 00%, and the yield of D2 is 80% Annual operating expenses are based on an assumed operabion of 2,250 hours per year, and workers are paid during any idle time of Machine Df or Machine D2 Assume repeatability Click the icon to view the allernatives description Click the icon to view the interost and annuty table for discrete compounding when 18% per year The total equivalent annual cost of owning a required number of machines 0f is $ (Round to the nearest hundreds) The total oquivalent annual cost of owning a required number of machines 02 is $ (Round to the nearest hundreds) Which machine should be selected? Choose the correct answer below O DI O D2 Data Table Product Machine 01 Machine D2 750 hours 1,550 hours 2,300 hours 24,000/machino eight yoars 7,500/machine 5,000/machine R-43 2,250 hours T-22 1,100 hours 3,350 hours 15,000machine Captal investment Useful life Annual expenses Sx years 5,500/machine 2,500/machine Market value

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A new manutactunng facility will produce two products, each of which requires a dnilling operation during processing Two alternative types of drilling machines (D1 and D2) are being considered for purchase. One of these machines must be selected For the same annual demand, the annual production requirements (machine hours) and the annual operating expenses (per machine) are listed in the table below Which machine should be selected if the MARR is 18% per year? Assumptions The facility will operate 2,250 hours per year Machine availability is 85% for Machine D1 and 80% for Machine D2 The yield of Df is 90%, and the yield of D2 is 80% Annual operating expenses are based on an asşsumed operation of 2,250 hours per year, and workers are paid during any idle time of Machine D1 or Machine D2 Assume repeatability Click the icon to view the allternatives descrption Click the icon to view the interest and annuity table for discrete compounding when i= 18% per year The total oquivalent annual cost of owning a required number of machines Df is $ (Round to the nearest hundreds ) The total oquivalent annuai cost of owning a required number of machines D2 is $ (Round to the nearest hundreds) Which machine should be selected? Choose the correct answer below O Df - X Data Table O D2 Product Machine D1 Machine D2 R-43 2,250 hours 750 hours 1,550 hours 2,300 hours 24,000/machino eight years 7,500/machine 5,000/machine T-22 1,100 hours 3,350 hours 15,000/machine Capital investment Useful life Annual expenses Sx years 5,500/machine 2,500/machine Market value
Transcribed Image Text:A new manutactunng facility will produce two products, each of which requires a dnilling operation during processing Two alternative types of drilling machines (D1 and D2) are being considered for purchase. One of these machines must be selected For the same annual demand, the annual production requirements (machine hours) and the annual operating expenses (per machine) are listed in the table below Which machine should be selected if the MARR is 18% per year? Assumptions The facility will operate 2,250 hours per year Machine availability is 85% for Machine D1 and 80% for Machine D2 The yield of Df is 90%, and the yield of D2 is 80% Annual operating expenses are based on an asşsumed operation of 2,250 hours per year, and workers are paid during any idle time of Machine D1 or Machine D2 Assume repeatability Click the icon to view the allternatives descrption Click the icon to view the interest and annuity table for discrete compounding when i= 18% per year The total oquivalent annual cost of owning a required number of machines Df is $ (Round to the nearest hundreds ) The total oquivalent annuai cost of owning a required number of machines D2 is $ (Round to the nearest hundreds) Which machine should be selected? Choose the correct answer below O Df - X Data Table O D2 Product Machine D1 Machine D2 R-43 2,250 hours 750 hours 1,550 hours 2,300 hours 24,000/machino eight years 7,500/machine 5,000/machine T-22 1,100 hours 3,350 hours 15,000/machine Capital investment Useful life Annual expenses Sx years 5,500/machine 2,500/machine Market value
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