Problem 11 Part 2 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 Ribbit: EUAWIR) --55,000"(A/P. 12%, 16) +6,000 (A/F.12%. 16) - 5,500 - [($15/12) * XI ONPWR) --55,000 (PIA, 12% 4)+ 6,000 (P/E 12%, 4) - 5,500 - $15/12) XI EUAWER) -55,000 (A/P, 12% 4 +6,000" (A/F, 12%, 4) - 5,500 - (($15/12) XI NPWR) - -55,000"/A/P. 12% 4) + 6,000" (A/F. 12%, 4) - 5,500 - $($15/12) XI Problem 11 Part 2 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 Ribbit: EUAWIR) --55,000"(A/P. 12%, 16) +6,000 (A/F.12%. 16) - 5,500 - [($15/12) * XI ONPWR) --55,000 (PIA, 12% 4)+ 6,000 (P/E 12%, 4) - 5,500 - $15/12) XI EUAWER) -55,000 (A/P, 12% 4 +6,000" (A/F, 12%, 4) - 5,500 - (($15/12) XI NPWR) - -55,000"/A/P. 12% 4) + 6,000" (A/F. 12%, 4) - 5,500 - $($15/12) XI