The Ecology Group wishes to purchase a piece of equipment for recycling of various metals. Machine 1
Question:
The Ecology Group wishes to purchase a piece of equipment for recycling of various metals. Machine 1 costs $123,000, has a life of 10 years, an annual cost of $5000, and requires one operator at a cost of $24 per hour. It can process 10 tons per hour. Machine 2 costs $70,000, has a life of 6 years, an annual cost of $2500, and requires two operators at a cost of $24 per hour each to process 6 tons per hour. Assume i = 7% per year and 2080 hours per work year. Determine the annual breakeven tonnage of scrap metal at i = 7% per year and select the better machine for a processing level of 1500 tons per year.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: