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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a present worth analysis. Show ( a ) hand and ( b ) spreadsheet solutions.
Â
|
 |
Machine X |
Machine Y |
|
First cost, $ |
250,000 |
430,000 |
|
Annual operating cost, $ per year |
60,000 |
40,000 |
|
Salvage value, $ |
70,000 |
95,000 |
|
Life, years |
3 |
6 |
Â
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