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Your Company needs a machine to produce 75,000 ball bearings, and then they will no longer need ball bearings. There are 2 types of machines
Your Company needs a machine to produce 75,000 ball bearings, and then they will no longer need ball bearings. There are 2 types of machines that can accomplish this task. Which machine should they choose? (MARR = 12%)
Machine 1: Requires an initial investment of $170,000 with O&M costs of $5,000 and will produce the 75,000 ball bearings in 4 years.
Machine 2: Requires an initial investment of $135,000 with O&M costs of $10,400 and will produce the 75,000 ball bearings in 6 years.
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