Question: answer these problems In looking for ways to cut costs and increase profit (to make the company's stock go up), one of the company's industrial
answer these problems





In looking for ways to cut costs and increase profit (to make the company's stock go up), one of the company's industrial engineers (IEs) de- termined that the equivalent annual worth of an existing machine over its remaining useful life of 3 years will be $-70,000 per year. The IE also determined that a replacement with more ad- vanced features will have an AW of $ 80,000 per year if it is kept for 2 years or less, $-75,000 if it is kept between 3 and 4 years, and $ 65,000 if it is kept for $ to 10 years. If the engineer uses a 3-year study period and an interest rate of 13% per year, she should recommend that the existing machine bbe: [a) Replaced now (5] Replaced I year from now (c) Replaced 2 years from now fa) Notreplaced The equivalent annual worth of an existing ma- chine at American Semiconductor is estimated to be $ 70,000 per year over its remaining useful life of 3 years. It can be replaced now or later with a machine that will have an AW of $ 90,000 per year if it is kept for 2 years or less, -$65,000 if it is kept between 3 and 3 years, and $-110,000 if it is kept for 6 to 8 years. The company wants an analysis of what it should do for a 3-year study period at an interest rate of 15% per year. The re- placement must be made now or 3 years from now, according to the department supervisor. You should recommend that the existing machine be replaced: (a) Now (5) 1 year from now (c) 2 years from now a) Can't tell; must find AW of different reten- tion combinations for the two machines\f\f\f\f
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