Problem 1 Part 2 ACME Inc. is considering two catapult assembly machines: Super Glue and Ribbit. Super Glue has an initial cost of $85,000, a salvage value of $10,000, and an annual maintenance costs of $8,500. Super Glue has the capacity to manufacture 15 catapults per hour and has a useful life of 8 years. Ribbit has an initial cost of $55,000, salvage value of $6,000, and an annual maintenance cost of $5,500. Ribbit has the capacity to manufacture 12 catapults per hour, and has a useful life of 4 years. Both machines require one operator paid $15 per hour during production. Determine the annual production quantity when the two machines are equally attractive and have a MARR of 12%. Instructions: Draw cash flow diagrams and identify the problem set-ups for each machine. From the equations below, select the one that best describes the setup for Ribbit: O NPW(R) = -55,000*(A/P, 12%,4) + 6,000 * (A/F, 12%, 4) - 5,500 - [($15 / 12) * X] O EUAW(R) = -55,000*(A/P, 12% ,4) + 6,000 * (A/F, 12%, 4) - 5,500 - [($15 / 12) * X] O NPW(R) = -55,000*(P/A, 12% ,4) + 6,000 * (P/F, 12%, 4) - 5,500 - [($15 / 12) * X] O EUAW(R) = -55,000*(A/P, 12%, 16) + 6,000 * (A/F, 12%, 16) - 5,500 - [($15 / 12) * X] Problem 1 Part 2 ACME Inc. is considering two catapult assembly machines: Super Glue and Ribbit. Super Glue has an initial cost of $85,000, a salvage value of $10,000, and an annual maintenance costs of $8,500. Super Glue has the capacity to manufacture 15 catapults per hour and has a useful life of 8 years. Ribbit has an initial cost of $55,000, salvage value of $6,000, and an annual maintenance cost of $5,500. Ribbit has the capacity to manufacture 12 catapults per hour, and has a useful life of 4 years. Both machines require one operator paid $15 per hour during production. Determine the annual production quantity when the two machines are equally attractive and have a MARR of 12%. Instructions: Draw cash flow diagrams and identify the problem set-ups for each machine. From the equations below, select the one that best describes the setup for Ribbit: O NPW(R) = -55,000*(A/P, 12%,4) + 6,000 * (A/F, 12%, 4) - 5,500 - [($15 / 12) * X] O EUAW(R) = -55,000*(A/P, 12% ,4) + 6,000 * (A/F, 12%, 4) - 5,500 - [($15 / 12) * X] O NPW(R) = -55,000*(P/A, 12% ,4) + 6,000 * (P/F, 12%, 4) - 5,500 - [($15 / 12) * X] O EUAW(R) = -55,000*(A/P, 12%, 16) + 6,000 * (A/F, 12%, 16) - 5,500 - [($15 / 12) * X]