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Required information Problem 05.030 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS An electric switch manufacturing company is trying to decide between three different assembly methods.
Required information Problem 05.030 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated rst cost of $47,000. an annual operating cost (AOC) of $8,000. and a service life of2 years. Method B will cost $87,000 to buy and will have an AOC of $4.000 over its 4eyear service life. Method C costs $117,000 initially with an AOC of $6,500 over its 8year life. Methods A and B will have no salvage value. but Method C will have equipment worth 13% of its rst cost. Problem 05030.3 Future Worth Analysis Perform a future worth analysis to select the method at r'= 8% per year. The future worth of method A is $ The future worth of method B is $ The future worth of method C is $ Method C O is selected
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