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A company is trying to decide between two machines for its manufacturing line. The Process1000 has an initial cost of $51427 and operating costs of
A company is trying to decide between two machines for its manufacturing line. The Process1000 has an initial cost of $51427 and operating costs of $11 per hour. It will allow the company to produce a higher quality product, providing an annual benefit of $73282. The company will use the Process1000 11894 hours per year. The Process1000 has a useful life 3 years and an estimated salvage value of $17751 at the end of its useful life The Super X has an initial cost of $76399. It is a bigger machine and can process more at a time so the company will ony need to use it for 7499 hours per year. The Super X has an estimated benefit of $84806 per year. The Super X will have a useful life of 7 years and a salvage value of $33590 at the end of its useful life. Using a MARR of 3%, what is the maximum operating cost per hour at which the Super X could run to make it equally desirable to the Process1000? Enter your answer as follows: 12.34 Round your answer to 2 decimal places. Do not use a dollar sign ("$") or any commas
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