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Note: if possible please write it on paper, it much easier to understand, thankyou Problem 3 Kaiyukan Lychee is planning to install an automated food
Note: if possible please write it on paper, it much easier to understand, thankyou
Problem 3 Kaiyukan Lychee is planning to install an automated food can sealing machine to enhance its production. Two different brand sealing machines with same output capacity i.e. 120,000 total units per year and selling price $0.375 per unit are proposed. Both machines have different estimated reject rates and no market values at the end of their 7 years useful lives. a) Determine which sealing machine should be chosen at MARR 11% if the present worth analysis is used as basis? b) Calculate an equivalent annual worth by using the relationship AW = PW (A/P, 1%, n). c) If the estimated reject rate is ignored, predict which machine should be selected if the future worth analysis is used as basis. d) Give your reflections on the machine selection in questions a) and c). POYO 44.900 FOOD CAN SEALING MACHINE HAUK Capital investment ($) 27,400 Annual expenses ($) 26,520 Insurance ($) 614 Estimated reject rate (%) 1.7 19,840 1023 5.4 Problem 3 Kaiyukan Lychee is planning to install an automated food can sealing machine to enhance its production. Two different brand sealing machines with same output capacity i.e. 120,000 total units per year and selling price $0.375 per unit are proposed. Both machines have different estimated reject rates and no market values at the end of their 7 years useful lives. a) Determine which sealing machine should be chosen at MARR 11% if the present worth analysis is used as basis? b) Calculate an equivalent annual worth by using the relationship AW = PW (A/P, 1%, n). c) If the estimated reject rate is ignored, predict which machine should be selected if the future worth analysis is used as basis. d) Give your reflections on the machine selection in questions a) and c). POYO 44.900 FOOD CAN SEALING MACHINE HAUK Capital investment ($) 27,400 Annual expenses ($) 26,520 Insurance ($) 614 Estimated reject rate (%) 1.7 19,840 1023 5.4Step by Step Solution
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