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And please include a cashflow. 4. An engineer is considering three machines for disposing of chemical sludge. The details of each machine are shown in
And please include a cashflow.
4. An engineer is considering three machines for disposing of chemical sludge. The details of each machine are shown in the following table. Indicators Machine A Machine B Machine C First cost (Rp) 150 million 240 million 310 million Operating cost in year 1 (Rp) 80 million 60 million 48 million Increase in operating cost each year 3 million 2.5 million 1 million (Rp/year) Salvage value (Rp) 20 million 32 million 36 million Life (years) 3 5 6 (a) (ELO 2, 15%, 25 minute) Determine which machine has the most economical value for company on the basis of a present worth comparison at interest rate 16% per year. (b) (ELO 2, 15%, 20 minute) Compare the annual worth value for each alternative and find the best machine valueStep by Step Solution
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