John as a senior project manager is looking for a new plant as an expansion project...

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John as a senior project manager is looking for a new plant as an expansion project for his company. He has considered two alternatives with the following financial information. In both plants the production capacity is 15 units per day. Project A is for 30 years. Project B will be repeated in the future at the same cost. Calculate the cost of each unit of production for each project assuming 300 days of production per year at an MARR of 12%. Investment annual operation Salvage Annual income tax service life Project A 1,500,000 70,000 50,000 30,000 30 years Project B 850,000 90,000 40,000 20,000 10 years John as a senior project manager is looking for a new plant as an expansion project for his company. He has considered two alternatives with the following financial information. In both plants the production capacity is 15 units per day. Project A is for 30 years. Project B will be repeated in the future at the same cost. Calculate the cost of each unit of production for each project assuming 300 days of production per year at an MARR of 12%. Investment annual operation Salvage Annual income tax service life Project A 1,500,000 70,000 50,000 30,000 30 years Project B 850,000 90,000 40,000 20,000 10 years

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To calculate the cost of each unit of production for each project we need to consider the initial in... View the full answer