Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $47.000, an annual

image text in transcribed
An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $47.000, an annual operating cost (AOC) of $8,000, and a service life of 2 years, Method B will cost $88,000 to buy and will have an AOC of $7,500 over its 4 -year service life. Method C costs $129,000 initially with an AOC of $4,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 10% of its first cost. Perform a future worth analysis to select the method at i=14% per year. The future worth of method A is S The future worth of method B is $ The future worth of method C is S Method is selected

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

11.2 Write simple instructions that are easy to follow

Answered: 1 week ago

Question

Define policy making?

Answered: 1 week ago

Question

Define co-ordination?

Answered: 1 week ago

Question

What are the role of supervisors ?

Answered: 1 week ago