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Problem 05.030 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS An electric switch manufacturing company is trying to decide between three different assembly methods. Method A
Problem 05.030 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $37.000, an annual operating cost (AOC) of $9,000, and a service life of 2 years. Method B will cost $78,000 to buy and will have an AOC of $10,000 over its 4-year service life. Method C costs $141,000 initially with an AOC of $4,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 10% of its first cost. Problem 05.030.a Future Worth Analysis Perform a future worth analysis to select the method at i = 12% per year. The future worth of method A is $ -65492.8 The future worth of method B is $ The future worth of method C is $ Method (Click to select) is selected
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