You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy

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You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy bars as detailed below.

(a) Using an AW analysis, determine which should be selected at i = 15% per year.

(b) Assume you want machine D to be selected and are willing to extend its estimated life, if necessary. Perform this analysis to ensure D€™s selection using factors or a spreadsheet.

D Machine First cost, $ -40,000 -65,000 Annual cost, $/year Salvage value, $ Life, years -10,000 -12,000 12,000 3 25,000

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Dec 24, 2018 09:21 AM

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You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy

Question:

D Machine First cost, $ -40,000 -65,000 Annual cost, $/year Salvage value, $ Life, years -10,000 -12,000 12,000 3 25,000 6.

Step by Step Answer:

a AW C 40000AP153 10000 12000AF153 40000043798 10000 12000028798 ...View the full answer

Engineering Economy

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