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Exercise The following two machines are considered: Automatic First Cost (5) 23000 Salvage Value (s) 4000 Life (years) 10 Operators 1 at $12/hr O&M (9)

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Exercise The following two machines are considered: Automatic First Cost (5) 23000 Salvage Value (s) 4000 Life (years) 10 Operators 1 at $12/hr O&M (9) 3500 Output 8 tons/hr MARR 10% Manual Feed 8000 0 5 3 at $8/hr each 1500 6 tons/hr 10% How much sheet metal must be finished per year to justify the automatic? If the production is at 2000 tons/year, which machine should be purchased

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