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You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy bars as detailed below. ( a ) Using
You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy bars as detailed below.
(a) Using an AW analysis, determine which should be selected at i = 15% per year.
(b) Assume you want machine D to be selected and are willing to extend its estimated life, if necessary. Perform this analysis to ensure Ds selection using a spreadsheet.
Machine | C | D | |
First cost, $ | 40,000 | 65,000 | |
Annual cost, $/year | 10,000 | 12,000 | |
Salvage value, $ | 12,000 | 25,000 | |
Life, years | 3 | 6 |
b) Enter n (the estimated life) in xx.xx format
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