Question
A firm wants to establish a new production line. He plans to sell this production line, which he will build, as second-hand when the line
A firm wants to establish a new production line. He plans to sell this production line, which he will build, as second-hand when the line ends or sooner. Two alternatives are available for line installation. Determine which production line is more economical using the Future Value Analysis (FW) method. The annual MARR value determined by the firm is 15% for A Initial investment cost -62,000 Annual operating expense (AOC), Dolar/Year
-15,000 Scrap value Dolar 8,000 Life, year 3
for B Initial investment cost -77000 Annual operating expense (AOC), Dolar/Year
-21000 Scrap value Dolar 10000 Life, year 6
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