2. A company has to choose one of three different assembly methods. Method A will have...
! Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $35,000, an annual operating cost (AOC) of $6,000, and a service life of 2 years. Method B will cost $78,000 to buy and will have an AOC of $4,500 over its 4-year service life. Method C costs $115,000 initially with an AOC of $7,000 over its 8-year life. Methods A and B will have no...
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...
One of two methods must be used to produce expansion anchors. Method A costs $55,000 initially and will have a $6,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Method B will have a first cost of $110,000, an operating cost of $6,000 per year, and a $39,000 salvage value after its 3-year life. The interest rate for both the methods is 10%. Which method should be used on the basis of...
One of two methods must be used to produce expansion anchors. Method A costs $70,000 initially and will have a $9,000 salvage value after 3 years. The operating cost with this method will be $33,000 per year. Method B will have a first cost of $125,000, an operating cost of $9,000 per year, and a $42,000 salvage value after its 3-year life. The interest rate for both the methods is 13%.
2. A machine can be made by using two different methods. Method X will have a first cost of W, an operating cost of $32,000 per year, and a $9000 salvage value after 4 years. Method will have a first cost of $140,000, an operating cost of $24.000 per year, and a $19.000 salvage value after its 4-year life. At an interest rate of 10% per year, which method should be used on the basis of an annual worth analysis?
One of two methods must be used to produce expansion anchors. Method A costs $75,000 initially and will have a $16,000 salvage value after 3 years. The operating cost with this method will be $25,000 per year. Method B will have a first cost of $150,000, an operating cost of $16,000 per year, and a $34,000 salvage value after its 3-year life. The interest rate for both the methods is 11%. What is the present worth of A PWA =...
One of two methods must be used to produce expansion anchors. Method A costs $50,000 initially and will have a $20,000 salvage value after 3 years. The operating cost with this method will be $29,000 per year. Method B will have a first cost of $105,000, an operating cost of $20,000 per year, and a $38,000 salvage value after its 3-year life. The interest rate for both the methods is 15%. Which method should be used on the basis of...
Required information One of two methods must be used to produce expansion anchors. Method A costs $50,000 initially and will have a $11,000 salvage value after 3 years. The operating cost with this method will be $40,000 per year. Method B will have a first cost of $125,000, an operating cost of $11,000 per year, and a $50,000 salvage value after its 3-year life. The interest rate for both the methods is 12%. Which method should be used on the...
Two methods can be used to produce expansion anchors. Method A costs $90,000 initially and will have a $16,000 salvage value after 3 years. The operating cost with this method will be $26,000 in year 1, increasing by $3200 each year. Method B will have a first cost of $106,000, an operating cost of $6000 in year 1, increasing by $6000 each year, and a $36,000 salvage value after its 3-year life. At an interest rate of 14% per year,...
wo methods can be used to produce solar panels for electric power generation. Method 1 will have an initial cost of $720,000, an AOC of $180,000 per year, and $130,000 salvage value after its 3-year life. Method 2 will cost $850,000 with an AOC of $130,000 and a $160,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period. You estimate the...