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An airport needs a modern material handling system for facilitating access to and from a busy maintenance hanger. A second-hand system will cost dollar 75,000.
An airport needs a modern material handling system for facilitating access to and from a busy maintenance hanger. A second-hand system will cost dollar 75,000. A new system with improved technology can decrease labor hours by 20 percent compared to the used system. The new system will cost dollar 150,000 to purchase and install. Both systems have a useful life of five years. The market value of the used system is expected to be dollar 15,000 in five years, and the market value of the new system is anticipated to be dollar 50,000 in five years. Current maintenance activity will require the used system to be operated 8 hours per day for 20 days per month. If labor costs dollar 40 per hour and the MARR is 2 percent per month, which system should be recommended? Click the icon to view the interest and annuity table for discrete compounding when i = 2 percent per month. The PW of the difference between the old and new systems is dollar (Round to the nearest dollar.)
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