3. Given: Your boss has asked you to investigate purchasing new machines for a processing line. The demand is 225,000 units/year, and the plant operates for 2080 hrs per year with a desired capacity cushion of 18%.implement to improve planting efficiency. You have found two machines that will fit your needs: 1. Machine 1 produces 60 units/hr, costs $225,000, and lasts 10 years. 2. Machine 2 produces 40 units/hr, costs $245,000, and lasts 20 years. Assume i= 8.0% and the salvage value is $0. Ignore taxes and depreciation Find: a. How many of machine 1 would be required? b. How many of Machine 2 would be required? c. What is the best choice based on engineering economics?

3. Given: Your boss has asked you to investigate purchasing new machines for a processing line. The demand is 225,000 units/year, and the plant operates for 2080 hrs per year with a desired capacity cushion of 18%.implement to improve planting efficiency. You have found two machines that will fit your needs: 1. Machine 1 produces 60 units/hr, costs $225,000, and lasts 10 years. 2. Machine 2 produces 40 units/hr, costs $245,000, and lasts 20 years. Assume i= 8.0% and the salvage value is $0. Ignore taxes and depreciation Find: a. How many of machine 1 would be required? b. How many of Machine 2 would be required? c. What is the best choice based on engineering economics?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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