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Question 1 (10 points) Saved The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. First cost, S
Question 1 (10 points) Saved The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. First cost, S Annual cost, S/year Salvage value, S Life, years (Source: Blank and Tarquin) Machine C -50,000 9,000 12,000 Machine D 65,000 -10,000 25,000 6 Based on the data provided and using an interest rate of 8% per year, the correct equation to calculate the Capital Recovery "CR" of Machine C is: CRC = -50,000(P/A, 8%, 3) + 12,000(F/A, 8%, 3) CRC = -50,000(A/P, 8%, 3) + 12,000(A/F, 8%, 3) -9,000(A/P, 8%, 3) CRC = -50,000(A/P, 8%, 3) + 12,000(A/F, 8%, 3) -9,000 CRC = -50,000(A/P, 8%, 3) + 12,000(A/F, 8%, 3) Question 2 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. First cost, S Annual cost, S/year Salvage value. S Life. years (Source: Blank and Tarquin) Machine C -50,000 -9,000 12,000 3 Machine D 65,000 10,000 25.000 Based on the data provided and using an interest rate of 8% per year, the Capital Recovery "CR" of Machine C is closest to: (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) CRC = $15.705 CRC = -523,098 CRC = $19.402 CRC = $10,882
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