Blue Whale Moving and Storage recently purchased a warehouse building in Santiago. The manager has two good options for moving palletsof stored goods in and around the facility. Alternative 1 includes a 4000-pound capacity, electric forklift (P = $-30,000; n = 12 years; AOC =$-1000 per year; S = $8000) and 500 new pallets at $10 each. The forklift operator’s annual salary and indirect benefits are estimated at $32,000.Alternative 2 uses two electric pallet movers (“walkies”) each with a 3000-pound capacity (for each mover, P = $-2000; n = 4 years; AOC = $-150 per year; no salvage) and 800 pallets at $10 each. The two operators’ salaries and benefits will total $55,000 per year. For both options, new palletsare purchased now and every two years that the equipment is in use. (a) If the MARR is 8% per year, use tabulated factors to determine which alternative is better. (b) Rework using a spreadsheet solution.
Blue Whale Moving and Storage recently purchased a warehouse building in Santiago. The manager has two good options for moving pallets
of stored goods in and around the facility. Alternative 1 includes a 4000-pound capacity, electric forklift (P = $-30,000; n = 12 years; AOC =
$-1000 per year; S = $8000) and 500 new pallets at $10 each. The forklift operator’s annual salary and indirect benefits are estimated at $32,000.
Alternative 2 uses two electric pallet movers (“walkies”) each with a 3000-pound capacity (for each mover, P = $-2000; n = 4 years; AOC = $-150 per year; no salvage) and 800 pallets at $10 each. The two operators’ salaries and benefits will total $55,000 per year. For both options, new pallets
are purchased now and every two years that the equipment is in use. (a) If the MARR is 8% per year, use tabulated factors to determine which alternative is better. (b) Rework using a spreadsheet solution.
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)