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Q.3. What are the conventional and modified Benefit to Cost ratios and how these are used in capital investment decisions. Check in your workplace where
Q.3. What are the conventional and modified Benefit to Cost ratios and how these are used in capital investment decisions. Check in your workplace where equipment can be replaced by alternative brand with different price to buy and/ or different salvage value/ resale value/ disposal cost at the end of life, might have different cost to operate due to different energy rating, power consumption, spare parts etc. and different capacity/ production rate and/ or quality resulting different price of products from alternative options. Alternatively consider that two alternative machines will produce the same product, but one will produce higher quality items which can be expected to return greater revenue Given the following data, determine which machine is better. Use the B/C method, a study period of 10 years, and a MARR of 10% Machine A $20,000 120,000 Machine B First cost: Salvage value Annual receipts: Annual disbursements: $30,000 0 150,000 140,000 2,000 110,000 Determine the B/C values for each machine by using both the conventional and the modified formulations Use excel and attach file as embedded file in word document/ upload file in Moodle for your analysis Q.3. What are the conventional and modified Benefit to Cost ratios and how these are used in capital investment decisions. Check in your workplace where equipment can be replaced by alternative brand with different price to buy and/ or different salvage value/ resale value/ disposal cost at the end of life, might have different cost to operate due to different energy rating, power consumption, spare parts etc. and different capacity/ production rate and/ or quality resulting different price of products from alternative options. Alternatively consider that two alternative machines will produce the same product, but one will produce higher quality items which can be expected to return greater revenue Given the following data, determine which machine is better. Use the B/C method, a study period of 10 years, and a MARR of 10% Machine A $20,000 120,000 Machine B First cost: Salvage value Annual receipts: Annual disbursements: $30,000 0 150,000 140,000 2,000 110,000 Determine the B/C values for each machine by using both the conventional and the modified formulations Use excel and attach file as embedded file in word document/ upload file in Moodle for your analysis
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