As Ford Motor Company retools an old trick assembly plant in Michigan to produce a fuel...

 

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As Ford Motor Company retools an old trick assembly plant in Michigan to produce a fuel efficient economy model which is the Ford Focus. Ford and its suppliers are seeking additional sources for light, long-life transmissions. Automatic transmission component manufacturers' use highly finished dies for precision forming of internal gears and other moving parts. Two United States-based vendors make the required dies. Use per unit estimates below and a MARR of 12% 7 per year to select the more economical vendor bid. "Hint: Alternative B is expected to repeat itself from years 5 to 10" Alternative Initial cost ($) Annual cost ($) Salvage value ($) Life (years) A 8,000 3,500 0 10 B 13,000 1,600 2,000 5 As Ford Motor Company retools an old trick assembly plant in Michigan to produce a fuel efficient economy model which is the Ford Focus. Ford and its suppliers are seeking additional sources for light, long-life transmissions. Automatic transmission component manufacturers' use highly finished dies for precision forming of internal gears and other moving parts. Two United States-based vendors make the required dies. Use per unit estimates below and a MARR of 12% 7 per year to select the more economical vendor bid. "Hint: Alternative B is expected to repeat itself from years 5 to 10" Alternative Initial cost ($) Annual cost ($) Salvage value ($) Life (years) A 8,000 3,500 0 10 B 13,000 1,600 2,000 5

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