(d) What should be the total annual operating & maintenance cost of the machine in order to breakeven at the A company is considering to buy a new machine for the production of its product. Currently the company is producing 1,000 products per hour with 5 workers that are paid $10 per hour each. The price of the new machine under produce 1,500 products per hour. If the company uses MARR of 8% p.a., answer the following: consideration is $22,000 with useful life of 10 years and the salvage value is estimated to be $500. The annual operating & maintenance cost of the new machine is $2,000 and requires one skilled operator, that will be paid from $24 per hour, and can (e) If the company needs 180,000 products per year, should they buy the machine? Show all work. per h (a) What is the breakeven point? (use AW). (b) What is the interpretation of this breakeven point? Explain. production level of 200,000 products? Note: You should first define your variable. toch wore thrs 20o prdctael

(d) What should be the total annual operating & maintenance cost of the machine in order to breakeven at the A company is considering to buy a new machine for the production of its product. Currently the company is producing 1,000 products per hour with 5 workers that are paid $10 per hour each. The price of the new machine under produce 1,500 products per hour. If the company uses MARR of 8% p.a., answer the following: consideration is $22,000 with useful life of 10 years and the salvage value is estimated to be $500. The annual operating & maintenance cost of the new machine is $2,000 and requires one skilled operator, that will be paid from $24 per hour, and can (e) If the company needs 180,000 products per year, should they buy the machine? Show all work. per h (a) What is the breakeven point? (use AW). (b) What is the interpretation of this breakeven point? Explain. production level of 200,000 products? Note: You should first define your variable. toch wore thrs 20o prdctael

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Evaluate the two machines below, using ROR analysis. Which machine should be selected, if MARR is 10%? Remember, the ROR equation should be set up to ensure equal service. Mach B -15,000 -25,000 -400 6,000 Mach A First cost ($) AOC ($) Salvage value (4) Life (yrs) -1,600 3,000 6
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Use annual worth
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