Question: Please answer Problem 2 and 3 Problem 2. White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration,
Problem 2. White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking, and HNAC equipment with newer models in one entire center built 9 years ago. The original purchase price of the equipment was $638,000 nine years ago and the operating cost has averaged $240,000 per year. Determine the equivalent annual cost of the equipment if the company can now sell it for $184,000. The company/s MARR is 25% per year. Problem 3. You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy bars as detailed below. (a) Using an AW analysis, determine which should be selected at i=15% per year. (b) Assume you want machine D to be selected and are willing to extend its estimated life, if necessary. Perform this analysis to ensure D's selection using factors
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