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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Mehmet Group wants to produce the M machines used in the casting industry in the Big Industry. The planned annual production and sales amount is 20,000 units and the sales price is calculated as "cost x 1.35". Information about this investment and production is given below. What is the sales price per unit of this project? What is the present and future value of the project's profit? TABLE: Workshop building and outbuildings 1.000.000 Usd Machine facilities 4,000,000 usd Staff is 380,000 usd and increasing by 40,000 usd every year Energy 180,000 usd and increasing by 15% every year Financing expenses 750,000 usd and decreasing by 10% each year Management and sales expenses decrease by 280,000 usd and 10,000 usd every year Raw material and auxiliary material 1.700 usd per unit Operation cost is 200,000 usd each year Major repair-maintenance is 150,000 usd in the 10th year Scrap value 8,000,000 usd in the 20th year Economic life 20 years Capital cost 25%
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