A company is contemplating replacing an older machine with a new efficient model. While the old unit
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A company is contemplating replacing an older machine with a new efficient model. While the old unit continues to work, it requires frequent repairs averaging $ per month and is slow. In addition to being shiny, the new unit will not breakdown and has more power. Since these machines are used the entire year, the company owner is hoping a new machine makes financial sense.
The existing machine costs an average of $ an hour to operate. A new unit can purchased $ and will cost an average of $ per hour to operate. What is the crossover point in hours for these options? round your answer to the nearest whole number
Related Book For
Financial Management Theory and Practice
ISBN: 978-0176517304
2nd Canadian edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
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