Wiring company is considering comparing between 2 Machines Assume Machine service life is 10 years Semi-Automated...

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Wiring company is considering comparing between 2 Machines Assume Machine service life is 10 years Semi-Automated $400,000 $10,000 $10,000 increasing by $1000 each year $20/ operating hr follow a straight-line depreciation with an annual charge of $15,000 The nominal MARR is 16% per year compounded monthly a) Find the salvage value for the machines from Semi-Automated & Fully- Automated First cost Material cost/ yr Labor cost/yr Annual saving / hr Salvage value Fully-Automated $500,000 $10,000 $15,000 increasing by 5% each year $30/ hr b) If the Company works 300 day/yr and 8 hrs/day compare the two devices using: 1. Future worth 2. Present worth 3. Annual worth follow a declining balance depreciation with a rate of 10% Wiring company is considering comparing between 2 Machines Assume Machine service life is 10 years Semi-Automated $400,000 $10,000 $10,000 increasing by $1000 each year $20/ operating hr follow a straight-line depreciation with an annual charge of $15,000 The nominal MARR is 16% per year compounded monthly a) Find the salvage value for the machines from Semi-Automated & Fully- Automated First cost Material cost/ yr Labor cost/yr Annual saving / hr Salvage value Fully-Automated $500,000 $10,000 $15,000 increasing by 5% each year $30/ hr b) If the Company works 300 day/yr and 8 hrs/day compare the two devices using: 1. Future worth 2. Present worth 3. Annual worth follow a declining balance depreciation with a rate of 10%

Answer rating: 100% (QA)

a Salvage Value for SemiAutomated Machine The salvage value for the SemiAutomated machine can be calculated using the straightline depreciation method The salvage value is equal to the initial cost mi... View the full answer