Nipha Electronics can purchase a needed service for $ 170 per unit. The same service can be provided by equipment that costs $ 50,000 and that will have a salvage value of 0 at the end of 10 years. Annual operating costs for the equipment will be $7,000 per ear plus $25 per unit produced. MARR is 12%/year.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Based on an annual worth analysis, should the equipment be purchased if the expected production is 440 units/year?
Yes
Annual Worth: $
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +10.
Determine the breakeven value for annual production that will return MARR on the investment in the new equipment.
units
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest unit. The tolerance is ±2.
Transcribed Image Text:Based on an annual worth analysis, should the equipment be purchased if the expected production is 440 units/year? Yes Annual Worth: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +10. Determine the breakeven value for annual production that will return MARR on the investment in the new equipment. units Carry all interim calculations to 5 decimal places and then round your final answer to the nearest unit. The tolerance is ±2.
Alpha Electronics can purchase a needed service for $ 170 per unit. The same service can be provided by equipment that costs $
150,000 and that will have a salvage value of 0 at the end of 10 years. Annual operating costs for the equipment will be $7,000 per
year plus $25 per unit produced. MARR is 12%/year.
Click here to access the TVM Factor Table Calculator
Based on an annual worth analysis, should the equipment be purchased if the expected production is 340 units/year?
Yes
Annual Worth: $
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10.
Transcribed Image Text:Alpha Electronics can purchase a needed service for $ 170 per unit. The same service can be provided by equipment that costs $ 150,000 and that will have a salvage value of 0 at the end of 10 years. Annual operating costs for the equipment will be $7,000 per year plus $25 per unit produced. MARR is 12%/year. Click here to access the TVM Factor Table Calculator Based on an annual worth analysis, should the equipment be purchased if the expected production is 340 units/year? Yes Annual Worth: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10.
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