Three products will be manufactured in a new facility. They each require an identical manufacturing operation, but different production times, on a broaching machine. Two alternative types of broaching machines (M1 and M2) are being considered for purchase. One machine type must be selected. For the same level of annual demand for the three products, annual production requirements (machine hours) and annual operating expenses (per machine) are listed on the right. Click the icon to view the additional information. Click the icon to view the GDS Recovery Rates (r_k) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. Calculate the AW value for Machine M1. AW_M1(11%) - $ (Round to the nearest hundreds.) Calculate the AW value for Machine M2. AW_M2(11%) - $ (Round to the nearest hundreds.) Based on the AW values, select Machine Assumptions-. The facility will operate 2,000 hours per year. Machine availability is 85% for Machine M1 and 80% for Machine M2. The yield of Machine M1 is 95%, and the yield of Machine M2 is 85%. Annual operating expenses are based on an assumed operation of 2,000 hours per year, and workers are paid during any idle time of Machine M1 or Machine M2. Market values of both machines are negligible. Work this problem on an after-tax basis when the MARR is 11% per year. The effective income tax rate is 40%, and MACRS depreciation is appropriate with a property class of five years. Recall that the market values of M1 and M2 are zero at the end of years five and eight, respectively. Three products will be manufactured in a new facility. They each require an identical manufacturing operation, but different production times, on a broaching machine. Two alternative types of broaching machines (M1 and M2) are being considered for purchase. One machine type must be selected. For the same level of annual demand for the three products, annual production requirements (machine hours) and annual operating expenses (per machine) are listed on the right. Click the icon to view the additional information. Click the icon to view the GDS Recovery Rates (r_k) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. Calculate the AW value for Machine M1. AW_M1(11%) - $ (Round to the nearest hundreds.) Calculate the AW value for Machine M2. AW_M2(11%) - $ (Round to the nearest hundreds.) Based on the AW values, select Machine Assumptions-. The facility will operate 2,000 hours per year. Machine availability is 85% for Machine M1 and 80% for Machine M2. The yield of Machine M1 is 95%, and the yield of Machine M2 is 85%. Annual operating expenses are based on an assumed operation of 2,000 hours per year, and workers are paid during any idle time of Machine M1 or Machine M2. Market values of both machines are negligible. Work this problem on an after-tax basis when the MARR is 11% per year. The effective income tax rate is 40%, and MACRS depreciation is appropriate with a property class of five years. Recall that the market values of M1 and M2 are zero at the end of years five and eight, respectively
