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hi please help me, thanks so much. 2. Consider four plastic molding presses. Suppose that each press is still capable of producing 120,000 total units
hi please help me, thanks so much.
2. Consider four plastic molding presses. Suppose that each press is still capable of producing 120,000 total units per year, but the estimated reject rate is different for each alternative. This means that the expected revenue will differ among the alternatives since only nondefective units can be sold. The data for the four presses are summarized below. The life of each press (and the study period) is five years. Press P1 P2 P3 P4 Capital investment Total annual expenses Reject rate $24,000 $30,400 $49,600 $49,600 $52,000 $31,200 $29,128 $25,192 $25,192 $22,880 8.4% 0.3% 2.6% 5.6% If all nondefective units can be sold for $0.375 per unit, which press should be chosenStep by Step Solution
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