Question: 2) Alpha Electronics can purchase a needed service for $90 per unit. The same service can be rovided by equipment that costs $115,000 and that
2) Alpha Electronics can purchase a needed service for $90 per unit. The same service can be rovided by equipment that costs $115,000 and that will have a salvage value of zero at the end 10 years. Annual operating costs for the equipment will be $7,000 per year plus $15 per unit roduced. MARR is 15.5% year. (25) a) What is the future worth of the equipment after 10 years if the expected production is 200 units/year? b) If the production were increased to 400 units/year, what would be the EUAW of the equipment? c) Determine the breakeven value for annual production that will return MARR on the investment in the new equipment, relative to the alternative of purchasing the service
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
