kindly solve these problems
A crashing machine that is a basic component of a metal recycling operation is wearing out faster than expected. The machine was purchased 2 years ago for $400,000. At that time, the buyer thought the machine would serve its needs for at least 5 years, at which time the machine would be sold to a smaller independent recycler for $30,000. Now, however, the company thinks the market value of the diminished machine is only $50,000. If it is kept, the machine's operating cost will be $37,000 per year for the next 2 years, after which it will be scrapped for $1000. If it is kept for only 1 year, the market value is estimated to be $10,000. Altema- tively, the company can of nice the process now for a fixed cost of $56,000 per year. At an interest rate of 10%% per year, should the company continue with the current machine or o arce the process? The data associated with operating and maintain- ing an asset are shown below. The company man- ager has already decided to keep the machine for I more year (ie., until the end of year 1), but you have been asked to determine the cost of keeping it more year after that. At an interest rate of 10% ber year, estimate the AW of keeping the machine from year I to year 2. Operating Cost. Year Market Value, $ $ per Year 30,000 -15,000 25,000 -15,000 14,000 -15,000 10,000 -15,000The table below shows present worth calculations of the costs associated with using a presently owned machine ( defender) and a possible replace- ment (challenger) for different numbers of years. Determine when the defender should be replaced using an interest rate of 10%% per year and a 3-year study period. Show solutions (a) by hand and (b) by spreadsheet. FW If Kept/Used Stated Number of Years Number of Years, $ Kept/Used Defender Challenger -36,000 -84,DO0 -75,DO0 -96,000 -125,00D - 102,DO0 -166,000 -217,DOD -149,000In 2008, Amphenol Industrial purchased a new quality inspection system for $530,000. The esti- mated salvage value was $30,000 after 8 years. Currently the expected remaining life is 3 years with an AOC of $27,000 per year and an estimated salvage value of $30,000. The new president has recommended early replacement of the system with one that costs $400,000 and has a 5-year economic service life, a $45,000 salvage value, and an estimated AOC of $50,000 per year. If the MARR for the corporation is 12% per year, find the minimum trade-in value now necessary to make the president's re economically advantageous A CNC milling machine purchased by Proto Tool and Die 10 years ago for $75,000 can be used for } more years. Estimates are an annual operating cost of $63,000 and a salvage value of $25,000. A chal- longer will cost $130,000 with an economic life of 6 years and an operating cost of $32,000 per year Its salvage value will be $45,000. On the basis ofDetermine the breakeven point for each plant. Estimate the minimum revenue per hundredweight required for next year if breakeven values and variable costs remain constant, but fixed costs increase by 10%% During this year, the French plant sold 950 units in Europe, and the U.S. plant sold $50 units. Deter- mine the year's profit (loss) for each plant. Hambry's president has a goal of $1 million profit next year at each plant with no revenue or fixed most increases Determine the decreases in dollar amounts and percewages in variable cost neces- sary to meet this goal, if the wamber of units sold is the same as this year.\f
