1. Problem-A business manufactures sports wheels for automobiles. The plant wants to improve its yield from 85% to 95%. The investment in machinery to be able to reach the performance in the plant for said objective in the process is $ 2,350,000 as of today. Consider the following data: -Annual demand 10,000 units per year. Current time 20 min. - Time of new higher quality machinery 30 min. - Raw material per unit $ 500 -Labor expenses $ 100 per hour What is the total annual saving? The machinery has a useful life of 10 years, assuming a rate of 10%: - Determine what the value is current as of today of all earnings? -Determine if the investment is made and if not, consider continuing with your current methodology. -What is the Benefit-Cost ratio? Is the project economically viable? From your own conclusions. 1. Problem-A business manufactures sports wheels for automobiles. The plant wants to improve its yield from 85% to 95%. The investment in machinery to be able to reach the performance in the plant for said objective in the process is $ 2,350,000 as of today. Consider the following data: -Annual demand 10,000 units per year. Current time 20 min. - Time of new higher quality machinery 30 min. - Raw material per unit $ 500 -Labor expenses $ 100 per hour What is the total annual saving? The machinery has a useful life of 10 years, assuming a rate of 10%: - Determine what the value is current as of today of all earnings? -Determine if the investment is made and if not, consider continuing with your current methodology. -What is the Benefit-Cost ratio? Is the project economically viable? From your own conclusions