Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 05 Feb 2018 My Price 5.00

automatic feed machine

8.2 A small aerospace company is evaluating two alternatives: the purchase of an automatic feed machine and a manual feed machine for a finishing process. The auto-feed machine has an initial cost of $23,000, an estimated salvage value of

 

$4000, and a predicted life of 10 years. One person will operate the machine at a rate of $24 per hour. The expected output is 8 tons per hour. Annual mainte- nance and operating cost is expected to be   $3500.

 

The alternative manual feed machine has a first cost of $8000, no expected salvage value, a 5-year life, and an output of 6 tons per hour. However, three workers will be required at $12 per hour each. The machine will have an annual maintenance and operation cost of $1500. All projects are expected to   generate a return of 10% per year. How many tons per year must be finished in order to justify the higher purchase cost of the auto-feed    machine?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 05 Feb 2018 10:02 PM My Price 5.00

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