Machines that have the following costs are under consideration for a robotized welding process. Using an interest
Question:
Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of a present worth analysis. Show
(a) Hand
(b) Spreadsheetsolutions.
Transcribed Image Text:
Machine X Machine Y First cost, S 250,000 430,000 Annual operating cost, $ per year-60,000 Salvage value, S Life, years -40,000 70,000 95,000
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