Two types of metal sheets can be used in the manufacture of container vans that require 20 m2 of material. Steel sheets which cost P500.00/m2 may be used but will have to be painted at a cost of P200.00m2, with repainting done every 4 years. Aluminum which costs P1000.00/m2 and is guaranteed to last for 16 years may also be used. If aluminum is used the vans may be sold at P10 000.00 higher than the steel vans at any time. If steel is used repainting has to be done before the vans are sold. If the vans are to be sold after 8 years, determine the material to be used using FW analysis and a 15% MARR. (Ans. Use aluminum, FTA= -P51 180.46)
16. Two types of metal sheets can be used in the manufacture of container vans that require 20 m2 of material. Steel sheets which cost P500.00/m2 may be used but will have to be painted at a cost of P200.00m2, with repainting done every 4 years. Aluminum which costs P1000.00/m2 and is guaranteed to last for 16 years may also be used. If aluminum is used the vans may be sold at P10 000.00 higher than the steel vans at any time. If steel is used repainting has to be done before the vans are sold. If the vans are to be sold after 8 years, determine the material to be used using FW analysis and a 15% MARR.
(Ans. Use aluminum, FTA= -P51 180.46)
17. If the vans in Prob. No. 16 are to be sold after 16 years with all other data remaining the same, determine the material to be used.
(Ans. Use steel, FTS= -P1175 639.81)
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