Answer These Questions:

\fA small aerospace company is evaluating two alternatives the purchase of an automatic feed machine and a manual feed machine for a finishing process. The auto feed machine has an initial cost of $23,000, an estimated salvage value of $4000, and a predicted life of 10 years. at a rate of $12 per hour. The expected output is 8 tons per hour. Annual maintenance and operating cost is expected to be $3500. The alternative manual feed machine has a first cost of $8000, no expected salvage value, a S-year life, and an output of 6 tons per hour. However, three workers will be required at $8 per hour each. The machine will have an annual mail ance and operation cost of $1500. All projects are expected to generate a return of 10% per year. How many toms per year must be finished to justify the higher purchase cost of the auto feed machine? Calution\f\fIn conducting a replacement study wherein the planning horizon is unspecified, list three assump- tions that are inherent in an annual worth analysis of the defender and challenger. A civil engineer who owns his own design/build/ operate company purchased a small crane 3 years ago at a cost of $60,000. At that time, it was ex- pecied to be used for 10 years and then traded in for its salvage value of $10,000. Due to increased construction activities, the company would prefer in trade for a new, larger crane now that will cost $80 000. The company estimates that the old crane can be used, if necessary, for another 3 years, at which time it would have a $23,000 estimated market value. Its current market value is estimated in be $39,000, and if it is used for another 3 years, it will have M&O costs (exclusive of operator costs of $17,000 per year. Determine the values of P. w. S, and ADC that should be used for the exist- ing crane in a replacement analysis