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Question 3 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Machine C Machine D
Question 3 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Machine C Machine D First cost, $ -50.000 -65,000 Annual cost, S/year -9,000 -10,000 Salvage value, S 12.000 25,000 Life. years (Source: Blank and Tarquin) Based on the data provided and using an interest rate of 8% per year, the correct equation to calculate the Annual Worth "AW" of Machine C is: AWC-50,000(P/A, 8%, 3) + 12,000(F/A, 8%, 3) -9,000 AWc = -50,000(A/P, 8%, 3) + 12.000(A/F, 8%, 3) -9,000(A/P, 8%, 3) AWC = -50,000(A/P, 8%, 3) + 12,000(A/F, 8%, 3) -9,000 AWC = -50,000(A/P, 8%, 3) + 25,000(A/F, 8%, 3) -10,000 Question 4 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. First cost, $ Annual cost, S/year Salvage value, Life, years (Source: Blank and Tarquin) Machine C --50,000 9,000 12.000 Machine D 65,000 -10,000 25,000 Based on the data provided and using an interest rate of 8% per year, the Annual Worth AW" of Machine C is closest to: (All the alternatives presented below were calculated using compound interest factor tables including all decimal places) AWC= $25,882 O AWC = -$24,705 AWC = -$19,402 AWC-$28,402 Question 5 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. First cost, $ Annual cost, $/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 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 D is: CRD=-65,000(P/A, 8%, 6) + 25,000(F/A, 8%, 6) CRp=-65,000(A/P, 8%, 6) +25,000(A/F, 8%, 6) -10,000 CRp=-65,000(A/P, 8%, 6) +25,000(A/F, 8%, 6)-10,000(A/P, 8%, 6) CRp 65,000(A/P, 8%, 6) + 25,000(A/F, 8%, 6)
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