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The cash flows in the table below represent the potential annual savings associated with two different types of production processes, each of which requires an
The cash flows in the table below represent the potential annual savings associated with two different types of production processes, each of which requires an investment of $43,000. Assume an interest rate of 12%
a)The equivalent annual savings for process A are $( )
b)The equivalent annual savings for process B are $( )
c)Determine the hourly savings for each process, assuming 2000 hours of operation per year.
d)which process should be selected
More Info ith two different t 2% per year n More Info Single Payment Compound Present Amount Worth Factor Factor (F/P, i, N) (P/F, i, N) 1.1 200 0.8929 2544 0.7972 1.4049 0.7118 5735 0.6355 1.7623 0.5674 2.2107 0.4 0.4039 2.7731 terest rate of 12% Process A Process B $43,000 $43,000 $18,600 $19,250 $18,600 $16,740 $18,600 $14,230 $11,720 $18,600 Equal Payment Series Gradient Series Compound Sinking Present Capital Gradient Gradient Amount Fund Worth Recovery Uniform Present Factor Factor Factor Factor Series Worth (FA, i, N) (A/F, i, N) (PIA, i, N) (A/P, i, N) (AMG, i, N) (P/G, i, N) 0.8929 0.0000 0000 1.0000 1200 0.0000 2.1200 6901 0.4717 0.4717 0.5917 0.7972 3.3744 2.4018 0.9246 2.2208 0.2963 0.4163 3.0373 4.7793 1.3589 0.2092 0.3292 4.1273 6.3528 3.6048 1.7746 0.1574 0.2774 6.3970 4.5638 10.0890 12.2997 0.0813 4.9676 14.7757 0.0677 3.2574 17.3563 3.5847 20.2541 17.5487 0.0570 5.6502 0.1770Step by Step Solution
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