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For D8=7,Thanks Machines that have the following costs are under consideration for a robotized welding process. Machine X Machine Y Machine Z $(427,000 + D8
For D8=7,Thanks
Machines that have the following costs are under consideration for a robotized welding process. Machine X Machine Y Machine Z $(427,000 + D8 1,000) $(300,000 + D8 x 1,000) Initial cost $(250,000 + D8 x 1,000) $(60,000 + D8 ~ 1,000) $(36,000 + D8 ~ 1,000) $(50,000 + D8 ~ 1,000) Annual operating cost Salvage value Life $(200,000 + D8 ~ 1,000) $(70,000+ D8 ~ 1,000) 6 $(80,000 + D8 x 1,000) 6 6 Assume the interest rate is 10% per year. (a) Find the present worth of each machine. (9 marks) (b) Find the annual worth of each machine. (9 marks) (c) Find the future worth of each machine. (9 marks) (d) Which machine should be chosen? Why? (3 marks) (e) If Machine Y needs to replace a special part ($1,100) at the end of Year 3, will you change your decision? Why? (4 marks)Step by Step Solution
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