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pls dont use excel. show step by step solution plsss. 1. A company purchased a numerically controlled machine for a manufacturing process 3 years ago.
pls dont use excel. show step by step solution plsss.
1. A company purchased a numerically controlled machine for a manufacturing process 3 years ago. It is expected to be used for 3 more years with annual operating cost of P4,500. However, due to rapid technological improvement of such machines, better machines are now available. Data for two possible replacement, Machine A and B and the defender are as follows: Defender Mach A Mach B First Cost $32,000 $45,000 Salvage Value $5000 $9000 Life in years 3 10 15 Annual Operating Cost $4500 $3200 $3600 $10,000 $12,000 Trade in Value of the defender If invested capital must earn 16%, determine which machine is more economical. Make a short discussion of your recommendationStep by Step Solution
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