You just purchased a pin-inserting machine to relieve some bottleneck problems that have been created in manufacturing a PC board. The machine cost $53,000 and has an estimated service life of six years. At that time, the estimated salvage value would be $5,700. The machine is expected to operate 3,200 hours per year. The expected annual operating and maintenance cost would be $6,400. If your firm's interest rate is 11%, what would be the machine cost (owning and operating) per hour? Click the icon to view the interest factors for discrete compounding when /= 11% per year. The machine cost per hour would be $ (Round to the nearest cent.)

You just purchased a pin-inserting machine to relieve some bottleneck problems that have been created in manufacturing a PC board. The machine cost $53,000 and has an estimated service life of six years. At that time, the estimated salvage value would be $5,700. The machine is expected to operate 3,200 hours per year. The expected annual operating and maintenance cost would be $6,400. If your firm's interest rate is 11%, what would be the machine cost (owning and operating) per hour? Click the icon to view the interest factors for discrete compounding when /= 11% per year. The machine cost per hour would be $ (Round to the nearest cent.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You just purchased a pin-inserting machine to relieve some bottleneck problems that have been created in manufacturing a PC board. The machine cost $53,000 and
has an estimated service life of six years. At that time, the estimated salvage value would be $5,700. The machine is expected to operate 3,200 hours per year. The
expected annual operating and maintenance cost would be $6,400. If your firm's interest rate is 11%, what would be the machine cost (owning and operating) per
hour?
Click the icon to view the interest factors for discrete compounding when /= 11% per year.
The machine cost per hour would be $. (Round to the nearest cent.)

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