A young industrial engineer analyzed some equip- ment to replace one production worker. The present worth of employing one less production worker just equaled the present worth of the equipment costs, assuming a 10-year useful life for the equipment. It was decided not to buy the equipment. 0022 A short time later, the production workers won a new 3-year union contract that granted them an immediate 40¢-per-hour wage increase, plus an addi- tional 25¢-per-hour wage increase in years 2 and 3. Assume that in future years, a 25¢-per-hour wage increase will be granted. 129 (a) By how much does the present worth of replac- ing one production employee increase? Assume an interest rate of 8%, a single 8-hour shift, and 250 days per year. (b) What are the ethical issues of replacing workers with advanced technologies from the firm's, the workers', and society's perspective?

A young industrial engineer analyzed some equip- ment to replace one production worker. The present worth of employing one less production worker just equaled the present worth of the equipment costs, assuming a 10-year useful life for the equipment. It was decided not to buy the equipment. 0022 A short time later, the production workers won a new 3-year union contract that granted them an immediate 40¢-per-hour wage increase, plus an addi- tional 25¢-per-hour wage increase in years 2 and 3. Assume that in future years, a 25¢-per-hour wage increase will be granted. 129 (a) By how much does the present worth of replac- ing one production employee increase? Assume an interest rate of 8%, a single 8-hour shift, and 250 days per year. (b) What are the ethical issues of replacing workers with advanced technologies from the firm's, the workers', and society's perspective?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: WORD PROBLEM:An employee works 2080 hours per year. They receive benefits that are 25% of their…

Q: Suppose you start saving for retirement when you are 45 years old. You invest $4,000 the first year…

Q: Enthle works in a call centre in Woodstock, Cape Town for 45 hours per week. Enthle earns a total of…

A: Employment rent is the benefits earned by the worker when the net value of employment exceeds the…

Q: None

A: To calculate the future tuition for GSC in 30 years with a tuition inflation rate of 6%, we'll use…

Q: s AED 5300/- Direct labor cost per day is AED 8200.00 and factory over head is AED 4200.00 . If he…

A: Factory Costs are the expenses that are incurred by the business to manufacture goods that are…

Q: Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $10 million and…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A new CNC lathe machine requires an investment of $300,000 today and it returns $69,000 per year for…

A: here we calculate the equivalent cost of the machine by using the given information , so the…

Q: n flexibility (horizontal axis) and wage (vertical axis), isoprofit curves slope downward because…

Q: None

Q: ) Citizens of the country of Blackland produce and export oil and import food. In 2000 they produced…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: How many future dollars would you need 5 years from now just to have the same buying power as…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Given that Q = Q(K, L) = (aK" + (1– a)L")F represents a production function, where Q is output, and…

A: Since, parts a and b are solved in the question. We know: dK/dL = (α-1)/α (L/K)r-1 This is the…

Q: You would like to buy carcar t is currently on the market at $85,000, but you cannot afford it right…

Q: A homebuilder’s advertising had the caption, “Inflation to Continue for Many Years.” The ad…

A: Inflation refers to the general increase in prices of goods and services in an economy over time.…

Q: Zyleron Corp. shows monthly fixed costs of RM 37,210 and a per-unit cost of RM 34.79. It sells 275…

A: Break even price are those price at which the firm earn only normal profit . Normal profit refers to…

Q: A baseball team has signed a draft pick to a two year contract. The player's expected marginal…

A: Sports economics is a branch of economics that investigates the monetary elements of the sports…

Q: consumption (units/year) 2500 2000 1500 1000 500 05 10 15 20 25 30 35 40 45 leisure (weeks/year) Ron…

A: Labour market consists demand and supply for a labour and interaction between them give rise to…

Q: In the short run, a tool manufacturer has a fixed amount of capital with labor as its primary…

A: A production function illustrates the relationship between the inputs used and the output produced…

Q: Illustrate the procedure used to convert the units into equivalent annual units?

A: Work-in-progress units are often referred as partially completed units which are converted to…

Question

A young industrial engineer analyzed some equip-
ment to replace one production worker. The present
worth of employing one less production worker just
equaled the present worth of the equipment costs,
assuming a 10-year useful life for the equipment. It
was decided not to buy the equipment.
A short time later, the production workers won
a new 3-year union contract that granted them an
immediate 40¢-per-hour wage increase, plus an addi-
tional 25¢-per-hour wage increase in years 2 and 3.
Assume that in future years, a 25¢-per-hour wage
increase will be granted.
(a) By how much does the present worth of replac-
ing one production employee increase? Assume
an interest rate of 8%, a single 8-hour shift, and
250 days per year.
(b) What are the ethical issues of replacing workers
with advanced technologies from the firm's, the
workers', and society's perspective?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

None
please calculate highlighted fields?
I will split this question into two parts per the Q&A guidlines and leave a like for your assistance, thank you.Background:New Pumper system equipment is under consideration by a gulf coast chemical processing plant. One crucial pump moves highly corrosive liquids from specially lined tanks on intercoastal barges into storage and preliminary refining facilities dockside. Beacuse of the variable quality of the raw chemical and the igh pressures imposed on the pump chassis and impellers, a close log is maintained on the number of hours per year that the pump operates safety records and pump componenet deterioration are considered critical control points for this system. As currently planned, rebuild and M&O cost estimates are increased accordingly when cummulative operating time reaches the 6000-hour mark. Information:- First cost: $800,000- Rebuild Cost: $150,000 whenever 6000 cumulative hours are logged. Each rework will cost 20% more than the previous one. A maximum of three…
i will 10 upvotes urgent