Problem 1 Part 1 ACME Inc. is considering two catapult assembly machines: Super Glue and Ribbit. Super Glue has an initial cost of $85,000, a salvage value of $10.000, and an annual maintenance costs of $8,500. Super Glue has the capacity to manufacture 15 catapults per hour and has a useful life of 8 years. Ribbit has an initial cost of $55.000, salvage value of $6,000, and an annual maintenance cost of $5,500. Ribbit has the capacity to manufacture 12 catapults per hour, and has a useful life of 4 years. Both machines require one operator paid $15 per hour during production Determine the annual production quantity when the two machines are equally attractive and have a MARR of 12% Instructions: Draw cash flow diagrams and identify the problem set-ups for each machine. From the equations below, select the one that best describes the setup for Super Glue: NPWISG) - 85.000* (P/A, 12%, 8) + 10,000 (P/F. 12%, 8) - 8,500 - ($15/15) * XI EUAWISG) --85,000 (A/P 12%. 16) + 10,000 (A/F. 12%, 16) - 8,500 - ($15/15) NPW(SG) --85.000 * (A/P, 12%, 8) + 10,000 (A/F. 12%, 8) - 8,500 - ($15/15) X O EUAWISG) --85.000 (A/P 12%, 8) + 10,000 (A/F, 12%, 8) - 8,500 - ($15/15) X