Question: 49. Two numerically controlled drill presses are being considered by the production department of Zunnis Manufacturing; one must be selected. Comparison data is shown in

49. 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.

Drill Press T Initial Investment Estimated Life Estimated Salvage Value $20,000 10

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

b. Which drill press should be recommended?

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

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