A company is considering buying an automatic machine for a certain process. The machine has an initial cost of 23,000, a residual value of 4,000 and a useful life of 10 years. The production of this machine is 8 tons per hour. You need an operator that makes $ 12.00 per hour. The annual cost of operation and maintenance is 3,500

As a second alternative you can buy a small machine for 8,000 that has a residual value of 0 and a useful life of 5 years. This requires three operators to earn $ 8.00 per hour per operator. Its maintenance cost is $ 1500 per year. This produces 6 tons per hour. MARR = 10%.

How many tons per year should be processed to justify buying the most expensive? N is the number of tons processed per year

Economical analysis for engineers