Question
Metal recyclers needs to purchase a new magnetic pick up device for moving scrap metal around the yard. The complete device will cost $62,000 and
Metal recyclers needs to purchase a new magnetic pick up device for moving scrap metal around the yard. The complete device will cost $62,000 and have an 8 year life and salvage value of $1500. Annual maintenance, fuel and overhead cost are estimated at $0.50 per metric ton moved. Labour cost will be $8 per hour for regular wages and $ 12 for overtime.A total of 25 tonnes can be moved in an 8 hour period. The salvage yard has hundred in the past everywhere from 10 to 30 tonnes of scrap per day. The company uses a MARR of 10% plot the sensitivity of present worth of the costs to the annual volume moved. Assume the operator is paid for 200 days of work every year. Use the 5 metric ton increment for the Graph.
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