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be engine than engine has any 10%, what would P14-08 500 P14-05 (M.E. Board, March 1978) A manufacturing firm supplies a certain product which is

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be engine than engine has any 10%, what would P14-08 500 P14-05 (M.E. Board, March 1978) A manufacturing firm supplies a certain product which is being made on an engine lathe to a progressive car manufacturing con pany. A turret lathe is now available. The data for the two lathes are as follows: Engine Lathe Turret Lathe First cost P36,000 P48,000 Installation cost 800 Salvage value at end of life 4,000 5,000 Trade-in value 12,000 Production time per piece, minutes 30 20 Labor cost per hour P2.00 2.50 Overhead per hour 5.00 4.50 Estimated life in years 10 8 Present age, years 5 Taxes and insurance 4% 4% There are 2,400 working hours each year on the old engine lathe. If money is worth 10% to the company, should replacement be made now? (M.E. * oid machine be replaced by 257,000. The 13,000. It is 5 more years w the new machin cost of mainte P be P1,500 more return of 8% a sine whether i replace it. 0 (M.E. P14-09 trucking com 10-wheeler tru the provinces Chan be engine than engine has any 10%, what would P14-08 500 P14-05 (M.E. Board, March 1978) A manufacturing firm supplies a certain product which is being made on an engine lathe to a progressive car manufacturing con pany. A turret lathe is now available. The data for the two lathes are as follows: Engine Lathe Turret Lathe First cost P36,000 P48,000 Installation cost 800 Salvage value at end of life 4,000 5,000 Trade-in value 12,000 Production time per piece, minutes 30 20 Labor cost per hour P2.00 2.50 Overhead per hour 5.00 4.50 Estimated life in years 10 8 Present age, years 5 Taxes and insurance 4% 4% There are 2,400 working hours each year on the old engine lathe. If money is worth 10% to the company, should replacement be made now? (M.E. * oid machine be replaced by 257,000. The 13,000. It is 5 more years w the new machin cost of mainte P be P1,500 more return of 8% a sine whether i replace it. 0 (M.E. P14-09 trucking com 10-wheeler tru the provinces Chan

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