Please answer accordingly, P'll upvote. Two lathes are being considered in the manufacture of certain parts. Data is given below: Lathe a Lathe b First cost 40,000 56,000 Salvage value 5,000 7,000 Annual 2,000 2,800 maintenance Operation, cost/hr 4 3.5 Life, in years 10 12 Time per part 0.40 0.25 (hours) a. Determine the number of machine parts/year that could be produced so that 2 lathes will be equally economical if the MARR is 18%. Use AWM b. If the number of parts is 10,000 units, which lathe will you recommend? Use ROR c. If the number of parts is 10,000 units, which lathe will you recommend? Use PWM d. If the number of parts is 10,000 units, which lathe will you recommend? Use EUAC
Please answer accordingly, P'll upvote. Two lathes are being considered in the manufacture of certain parts. Data is given below: Lathe a Lathe b First cost 40,000 56,000 Salvage value 5,000 7,000 Annual 2,000 2,800 maintenance Operation, cost/hr 4 3.5 Life, in years 10 12 Time per part 0.40 0.25 (hours) a. Determine the number of machine parts/year that could be produced so that 2 lathes will be equally economical if the MARR is 18%. Use AWM b. If the number of parts is 10,000 units, which lathe will you recommend? Use ROR c. If the number of parts is 10,000 units, which lathe will you recommend? Use PWM d. If the number of parts is 10,000 units, which lathe will you recommend? Use EUAC
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Please answer accordingly, P'll upvote.
Two lathes are being considered in the manufacture of certain parts. Data is given below:
Lathe a
Lathe b
First cost
40,000
56,000
Salvage value
5,000
7,000
Annual
2,000
2,800
maintenance
Operation, cost/hr
4
3.5
Life, in years
10
12
Time per part
0.40
0.25
(hours)
a. Determine the number of machine parts/year that could be produced so that 2 lathes will be equally
economical if the MARR is 18%. Use AWM
b. If the number of parts is 10,000 units, which lathe will you recommend? Use ROR
c. If the number of parts is 10,000 units, which lathe will you recommend? Use PWM
d. If the number of parts is 10,000 units, which lathe will you recommend? Use EUAC
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