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A business firm is contemplating the installation of a material handling system, and two designs are being considered. The first design is an automated guided

A business firm is contemplating the installation of a material handling system, and two designs are being considered. The first design is an automated guided vehicle system (AGVS). THE second design is a pallet conveyor system The estimated costing data for the two systems are shown below; AGVS (000) Conveyor (000) Initial cost 280 360 Annual operating costs 50 35

The estimated salvage values are;

Year AGVS (000) Conveyor(000) 1 230 300 2 185 245 3 145 200 4 110 160 5 80 125 A MARR of 10% is used. 1. Using a PV technique, determine the breakeven value for the planning horizon

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