Chapter-13 Question 2: (1.5 point) A certain Toys Company is considering the following two options with MARR = 15% : Option-1: Manufacture the toys: Purchasing two new machines (A and B) Machine (A) Machine (B) First Cost ($) 18,000 12,000 Salvage Value ($) 2,000 5,000 Life (years) 6 4 O&M ($/year) 6,000 5,000 The above option (purchasing 2 machines) requires hiring four workers at $2.5/hr each (8 hr shift per day). Both machines produce 1000 toys/day (total). Option-2: Buying the toys at $0.5 per toy (a) How many toys should be produced to reach the breakeven point? (b) If the production is 75000 toys/year, which alternative would you choose? Chapter-13 Question 2: (1.5 point) A certain Toys Company is considering the following two options with MARR = 15% : Option-1: Manufacture the toys: Purchasing two new machines (A and B) Machine (A) Machine (B) First Cost ($) 18,000 12,000 Salvage Value ($) 2,000 5,000 Life (years) 6 4 O&M ($/year) 6,000 5,000 The above option (purchasing 2 machines) requires hiring four workers at $2.5/hr each (8 hr shift per day). Both machines produce 1000 toys/day (total). Option-2: Buying the toys at $0.5 per toy (a) How many toys should be produced to reach the breakeven point? (b) If the production is 75000 toys/year, which alternative would you choose