You recently noticed that there is a bottleneck in the production line where the finished products...

 

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You recently noticed that there is a bottleneck in the production line where the finished products are not transported immediately to the packing station. After some discussion with the operations manager, installing a conveyor system from the end of the production line to the packing station seems like a possible solution. If MARR is 20% and the study period is 10 years, select the best conveyor system from the following table using the incremental IRR analysis. Calculate the internal rate of return of the final selected conveyor system. Conveyor systems Initial cost Productivity (RM) Maintenance (RM/year) cost (RM) Salvage value (RM) Slider Bed or Belt over Roller 600000 155000 1300 every year 80000 Live Roller AC 650000 174000 1500 every year 50000 Chain Driven Live Roller 680000 164000 (CDLR) AC 1200 every year + 3000 every 5 years 120000 Gravity Flexible 500000 118000 1000 every year none You recently noticed that there is a bottleneck in the production line where the finished products are not transported immediately to the packing station. After some discussion with the operations manager, installing a conveyor system from the end of the production line to the packing station seems like a possible solution. If MARR is 20% and the study period is 10 years, select the best conveyor system from the following table using the incremental IRR analysis. Calculate the internal rate of return of the final selected conveyor system. Conveyor systems Initial cost Productivity (RM) Maintenance (RM/year) cost (RM) Salvage value (RM) Slider Bed or Belt over Roller 600000 155000 1300 every year 80000 Live Roller AC 650000 174000 1500 every year 50000 Chain Driven Live Roller 680000 164000 (CDLR) AC 1200 every year + 3000 every 5 years 120000 Gravity Flexible 500000 118000 1000 every year none