Question: 4. A manufacturing process can be designed for varying degrees of automation. The following is rele- vant cost information: Annual Power and Maintenance Expense Degree

 4. A manufacturing process can be designed for varying degrees of

4. A manufacturing process can be designed for varying degrees of automation. The following is rele- vant cost information: Annual Power and Maintenance Expense Degree A B First Cost $10,000 14,000 20,000 30,000 Annual Labor Expense $9,000 7,500 5,000 3,000 $500 800 1,000 1,500 D USE CLASSICAL-SL FOR Determine which is best by after-tax analysis using an DEPRECIATION income tax rate of 40%, an after-tax MARR of 15%, and SL depreciation. Assume that each has a life of five years and no BV or MV. USE ATCF-PW-TO SELECT BEST ALTERNATIVE

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