$1\mathrm{.}7$ A production machine operates in a semi$-$automatic cycle but a worker must tend the machine $100\%$ of the time to load parts. Unloading is accomplished automatically. The worker's cost rate $=$$$\frac{27}{h}r$ including applicable labor overhead rate. The equipment cost rate of the machine $=$$$\frac{18\mathrm{.}00}{h}r$ including applicable overhead costs. Cost of the starting parts $=$$$\frac{0\mathrm{.}15}{p}c.$ The job runs several months so the effect of setup can be ignored. Each cycle, the actual process time $=24sec,$ and time to load the part $=6sec.$ Automatic unloading takes $3sec.$ A proposal has been made to install an automatic parts$-$loading device on the machine. The device would cost $$36,000$ and would reduce the part loading time to $3$ sec each cycle. Its expected life $=4$ years. The device would also relieve the worker from full$-$time attention to the machine. Instead, the worker could tend four machines, effectively reducing the labor cost to $25\%$ of its current rate for each machine. The operation runs $250$ days per year, eight hours per day. Assume availability $=100\%$ and scrap rate $=0.$