a. Compare the probable part cost from Machine A and Machine B, assuming that each will make the part to the same specification. Which machine yields the lowest part cost? Assume that the MARR = 10% per %3D year. (6.5) b. If the cost of labor can be cut in half by using part-time employees, recommended? (6.5) which machine should be

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Labor cost per hour
Maintenance cost per year
6-39.
a. Compare the probable part cost from Machine A and
Machine B, assuming that each will make the part
to the same specification. Which machine yields the
lowest part cost? Assume that the MARR = 10% per
%3D
year. (6.5)
b. If the cost of labor can be cut in half by using
part-time employees, which machine should be
recommended? (6.5)
Machine A Machine B
Initial capital investment
Life
$35,000
10 years
$3.500
10,000
$16
$150,000
8 years
$15,000
10,000
$20
Market value
Parts required per year
Labor cost per
Time to make one part
10 minutes
20 minutes
Maintenance cost per year
$3,000
$1,000
Transcribed Image Text:Labor cost per hour Maintenance cost per year 6-39. a. Compare the probable part cost from Machine A and Machine B, assuming that each will make the part to the same specification. Which machine yields the lowest part cost? Assume that the MARR = 10% per %3D year. (6.5) b. If the cost of labor can be cut in half by using part-time employees, which machine should be recommended? (6.5) Machine A Machine B Initial capital investment Life $35,000 10 years $3.500 10,000 $16 $150,000 8 years $15,000 10,000 $20 Market value Parts required per year Labor cost per Time to make one part 10 minutes 20 minutes Maintenance cost per year $3,000 $1,000
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