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Question 12 O pts Silph Co. is considering two manufacturing machines for manufacturing balls and scopes, two equally profitable products to the company. Machine 1
Question 12 O pts Silph Co. is considering two manufacturing machines for manufacturing balls and scopes, two equally profitable products to the company. Machine 1 has an initial cost of $135,000, a salvage value of $12,000, and an annual maintenance cost of $7,500. Machine 1 manufactures 25 balls per hour and has a useful life of 9 years. Machine 2 has an initial cost of $92,000, salvage value of $7,000, and an annual maintenance cost of $6,500. Machine 2 manufactures 40 scopes per hour, and has a useful life of 6 years. Machine 1 requires one operator that is paid $14 per hour, and Machine 2 requires 2 operators, each paid $10 per hour. Determine the annual production quantity when the two machines are equally attractive and have a MARR of 10%, assuming project repeatability holds. Grading Criteria: Setup: 3.00 points Calculations: 1.00 point Answer: 0.50 points Statement: 0.50 points
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