Two numerically controlled drill presses are being considered by the production department of Zunnis Manufacturing; one must

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Two numerically controlled drill presses are being considered by the production department of Zunni’s Manufacturing; one must be selected. Comparison data is shown in the table below. MARR is 10 percent/year.

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a. What is the present worth of each drill press?

b. Which drill press should be recommended?

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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Question Posted: Mar 27, 2024 02:03 AM

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Two numerically controlled drill presses are being considered by the production department of Zunnis Manufacturing; one must

Question:

Drill Press T Drill Press M Initial Investment Estimated Life Estimated Salvage Value $20,000 $30,000 10 years 10 years $5,000 $7,000 Annual Operating Cost $12,000 $6,000 Annual Maintenance Cost $2,000 $4,000

Step by Step Answer:

Based on the information provided in the table Drill Press T appears to be the better choice for Zunnis Manufacturing Heres why Present Worth Analysis ...View the full answer

Principles Of Engineering Economic Analysis

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