Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Metal recyclers needs to purchase a new magnetic pickup device for moving scrap metal around the yard. The complete device will cost $62,000 and have

Metal recyclers needs to purchase a new magnetic pickup device for moving scrap metal around the yard. The complete device will cost $62,000 and have an 8 year life and a salvage value of $1500. Annual maintenance, fuel and overhead costs are estimated at $ 0.50 per metric ton moved. Labor cost will be $8 per hour for regular wages and $12 for overtime. A total of 25 tons can be moved in an 8 hour period. The salvage yard has handled in the past anywhere from 10 to 30 tons of scrap per day. If the company uses a MARR of 10%

Requried

plot a graph the sensitivity of present worth of costs to the annual volume moved. Assume the operator is paid for 200 days of work per year.

Use a 5 metric ton increment for the graph.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

15th Edition

978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960

More Books

Students also viewed these Accounting questions

Question

how to choose the appropriate test to analyse your data.

Answered: 1 week ago

Question

one-tailed and two-tailed hypotheses

Answered: 1 week ago

Question

how probability distributions form the basis of statistical tests

Answered: 1 week ago