Question: Complete the following problem and submit both files to the drop box by the due date as indicated in the schedule. The following annual costs

Complete the following problem and submit both files to the drop box by the due date as indicated in the schedule. The following annual costs are associated with two new extruder machines being considered for use in a Styrofoam cup plant Data X-Trud Useful Life, Years 13 $2,300,000 $82,000 $580,000 $2,780,000 $118,000 $670,000 First Cost Salvage Value Annual Benefit (S/year) Operations and Maintenance Costs. $65,000 $78,000 $/year $15,000 $11,000 Operations & Maintenance Gradient, $/year (starting at year 2) The company's interest rate (MARR) is 12%. Which extruder should the Styrofoam company choose? Use Annual Cash Flow Analysis. Complete the problem using the following methods: 1. By hand calculations on Engineering Computation Paper a. IPE Approach, Interpretation will be a cash flow diagram for each b. Communicate your formulas correctly, showing the variables; followed by the data; followed by the value you used. (Example: In separate lines of the solution your equations should read as follows: i. .F(p/f,i%,n).. ii....$40,000(p/f,4%,5).. $40,000(0.8219) + iii. 2. In Excel a. Use cell references and formulas for all calculations Name the worksheet "Unit 6
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
