Waterways is considering the replacement of an antiquated machine that has been slowing dowm production because of breakdomis and added maintenance The operations manager estimates that this machine still has $2$ more years of possible use. The machine produces an average of $5000$ units per day at a unit cost of $$600,$ whereas other similar machines are producing twice that much. The urits sell for $$8\mathrm{.}80.$ Sales ane equal to production on these units, and production runs for $260$ days each vear. The replacement machipe would cost $$75,500$ and have a $2-$year life.

Given the infiormation above, what are the consequences of Watenwys replacirg the machine that is slowing down production because of breakdouns?

Mill result in a of $

Waberways keep the old machine

ETexthook and Media

Attempts: unlimited