solve by hand A firm is trying to decide which of the two automated packaging equipment...
A firm is trying to decide which of the two automated packaging equipment to install. For the first option a company can save $44,000 per year in labor but will incur an additional maintenance parts cost after the 3-year warranty period. In year 4, the maintenance parts will cost $900 and will increase in year 5 to 8 by $125 per year. For the second option, the company can save $49,000 per year but will incur additional yearly maintenance parts...
A firm is trying to decide which technology to replace a critical machine. The first choice is a new automated welding machine which costs $400,000. Items produced with the automated welding machine will have a variable cost of $4 per item to produce. The other technology involves a manual machine for $120,000. The manual machine produces parts at a variable cost of $8 per unit. Calculate the indifference point Suppose Marketing determines the following forecast with probabilities: Units Demanded =...
Foster Inc. is trying to decide whether to lease or purchase a piece of equipment needed for the next ten years. The equipment would cost $49,000 to purchase, and maintenance costs would be $5,200 per year. After ten years, Foster estimates it could sell the equipment for $27,000. If Foster leases the equipment, it would pay $13,000 each year, which would include all maintenance costs. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value...
solve by hand Two pumps are being considered for purchase and will be needed as a continuing requirement. The initial cost of the first pump is $5,600, and it has a salvage value at the end of its 5 year life of $1,000. Maintenance cost is estimated to be $800 the first year and increase $50 per year to the end of its 5 year life. The other pump costs $6000 and has a salvage value at the end of...
Your company is trying to decide which of the two following devices should be selected. Device A: costs $1,000 but can save $300 annually Device B: costs $1,350 but can save $300 the first year, but savings is increased $50 annually thereafter. Both devices have 5-year useful life and no salvage value a) Draw cash flow diagram for each option b) If interest rate is 7%, which device should your company purchase?
thats all the info that is given. Save Homework: Chapter 6 HW Score: 0 of 1 pt Problem 6-5 (algorithmic) 4 of 11 (8 complete) HW Score: 38.78%, 4.27 of 11 pts I Question Help Your company is environmentally conscious and is considering two heating options for a new research building, What you know about each option is below, and your company will use an annual interest rate (MARR) of 8% for this decision. Which is the lower cost option...
solve only 2.24 .... 2.23 The Automated Assembly Company is considering three different methods for assembly of parts in a production line. Method 1 has an initial cost of $40,000, an annual cost of $9,000, and a two-year life. Method 2 has an initial cost of $80,000, with a 4-year life and an annual operating cost of $6,000. Method 3 is a longer-life alternative, lasting 8 years with an initial cost of $160,000 and annual operating costs of $2,000. Methods...
X Company is trying to decide whether to continue using old equipment to make Product A or replace it with new equipment that will have lower operating costs. The following information is available: The new equipment will cost $46,000. Disposal value at the end of its 5-year useful life will be $6,000. The old equipment was purchased 3 years ago for $24,000. It can be sold immediately for $5,000 but will have zero disposal value in 5 years. Maintenance work,...
X Company is trying to decide whether to continue using old equipment to make Product A or replace it with new equipment that will have lower operating costs. The following information is available: The new equipment will cost $45,000. Disposal value at the end of its 5-year useful life will be $5,000. The old equipment was purchased 3 years ago for $24,000. It can be sold immediately for $10,000 but will have zero disposal value in 5 years. Maintenance work,...
X Company is trying to decide whether to continue using old equipment to make Product A or replace it with new equipment that will have lower operating costs. The following information is available: The new equipment will cost $52,000. Disposal value at the end of its 6-year useful life will be $5,500. The old equipment was purchased 3 years ago for $23,000. It can be sold immediately for $10,000 but will have zero disposal value in 6 years. Maintenance work,...