An international textile company's North America Division must decide which type of fabric cutting machines it will use-a straight knife or a round knife. The estimates are summarized below. Compare them on the basis of annual worths at /= 9%. Round Knife $-250,000 Straight Knife $-180,000 First Cost $-36,000 $36,000 AOC, per Year Overhaul in Year 2 $-16.000 Salvage Value $36,000 $20,000 Life 6 years 4 years The round knife type of fabric cutting machine will be used by the company.

An international textile company's North America Division must decide which type of fabric cutting machines it will use-a straight knife or a round knife. The estimates are summarized below. Compare them on the basis of annual worths at /= 9%. Round Knife $-250,000 Straight Knife $-180,000 First Cost $-36,000 $36,000 AOC, per Year Overhaul in Year 2 $-16.000 Salvage Value $36,000 $20,000 Life 6 years 4 years The round knife type of fabric cutting machine will be used by the company.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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