A new manufacturing plant costs $5,500,000 to build. Operating and maintenance costs are estimated to be $41,000
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A new manufacturing plant costs $5,500,000 to build. Operating and maintenance costs are estimated to be $41,000 per year, and a salvage value of 25% of the initial cost is expected. The units the plant produces are sold for $40 each. Sales and production are designed to run 365 days per year. The planning horizon is 10 years. Find the break-even value for the number of units sold per day for each of the following values of MARR: 5% 10% 15%. Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest unit.
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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