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(Bonus Question) You purchased $100,000 worth horizontal milling machine in your ongoing project. You expect to save labour costs by $50,000 in year 1, $15,000
(Bonus Question) You purchased $100,000 worth horizontal milling machine in your ongoing project. You expect to save labour costs by $50,000 in year 1, $15,000 in year 2 and $60,000 in year 3. This machine will have different operating hours over three years: 1,000 hours between year 0 (now) and year 1, 3,500 hours between year 1 and year 2 and 2,000 hours between year 2 and year 3. Using the information above, determine the equivalent savings per machine hour at MARR=7%. a) Between $0.62 and $0.65 b) Between $0.66 and $0.69 c) Between $0.48 and $0.51 d) None of the answers is correct e) Between $0.58 and $0.61
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