Question: 5 points You are newly appointed Technical Manager at the mine. Your General Manager tasked you with a decision to choose between sinking a shaft

 5 points You are newly appointed Technical Manager at the mine.

5 points You are newly appointed Technical Manager at the mine. Your General Manager tasked you with a decision to choose between sinking a shaft or using dump trucks to transporto from undergroud to surface of the mine. Dump trucks will have an operating costs of R597,152 per month with the first cost of R711.136 Income is expected to be 16 month with expenses for utility, labour, taxes, etc expected to average R801475 per month. Alternatively, shaft will cost R2.757,787 to sink and 1792.897 per month to operate is expected to be 923.491. If the salvage values are assumed to be 10% of the first cost for dump trucks and 35 of the first cost of the shaft after a year planning period determine al worth for shaft sinking at an interest rate of 12% per year, compounded monthly

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