Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 11 Part 3 ACME Inc. is considering two catapult assembly machines: Super Glue and Ribbit. Super Glue has an initial cost of $85,000, a

image text in transcribed
Problem 11 Part 3 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: From the equations identified in Parts 1 and 2, calculate the annual production quantity when the two machines are equally attractive and have a MARR of 12% and enter in the space below the amount Note: Enter the answer in the format 1234.00 (using absolute values only, don't worry about negative values), without commas, or any symbol leg. $. +..etc.) Problem 11 Part 3 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: From the equations identified in Parts 1 and 2, calculate the annual production quantity when the two machines are equally attractive and have a MARR of 12% and enter in the space below the amount Note: Enter the answer in the format 1234.00 (using absolute values only, don't worry about negative values), without commas, or any symbol leg. $. +..etc.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Define Management or What is Management?

Answered: 1 week ago

Question

What do you understand by MBO?

Answered: 1 week ago