Y6

2. Two alternatives for an assembly line include a fully automatic systems at an initial cost of $300,000 with annual operating costs of $36,000 and a semi automatic system with an initial cost of $150,000 with annual operating costs of $54,000. The variable cost of each product is $ 3.75 for first alternative and $5.25 for the second alternative. What is the point of indifference between these two alternatives? MARR-10% and both systems work for 10 years with no salvage value