In a manufacturing casting factory, a new machine is needed for casting machines. There are two types of machines on the market that will do the same job. The information is as follows. Machine A machine B Savings to be achieved 370,000 370,000 Buying prices 125.000 167.000 Scrap values 25,000 35,000 Annual operating expenses 8,900 5,200 Annual energy cost 40,000 32,000 Engine maintenance 7th year 12,000 7,000 Economic life 11 years 11 years Capital cost 25% 25% Which machine do you prefer? Note:Solve with Net Present Value Method (Don't use exel please )
In a manufacturing casting factory, a new machine is needed for casting machines. There are two types of machines on the market that will do the same job. The information is as follows. Machine A machine B Savings to be achieved 370,000 370,000 Buying prices 125.000 167.000 Scrap values 25,000 35,000 Annual operating expenses 8,900 5,200 Annual energy cost 40,000 32,000 Engine maintenance 7th year 12,000 7,000 Economic life 11 years 11 years Capital cost 25% 25% Which machine do you prefer? Note:Solve with Net Present Value Method (Don't use exel please )
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In a manufacturing casting factory, a new machine is needed for casting machines. There are two types of machines on the market that will do the same job. The information is as follows.
Machine A machine B
Savings to be achieved 370,000 370,000
Buying prices 125.000 167.000
Scrap values 25,000 35,000
Annual operating expenses 8,900 5,200
Annual energy cost 40,000 32,000
Engine maintenance 7th year 12,000 7,000
Economic life 11 years 11 years
Capital cost 25% 25%
Which machine do you prefer?
Note:Solve with
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