solve it by excel and step by step clearly !! 620 You have two machines under co
ID: 2789799 • Letter: S
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solve it by excel and step by step clearly !!
620 You have two machines under consideration for an improved automated wrapping process for Snick- ers Fun Size candy bars as detailed below. (a) Using an AW analysis, determine which should be selected at 15% per year. 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 or a spreadsheet. (b) Machine First cost, $ Annual cost, S/year Salvage value, S Life, years -40,000 -10,000 12,000 -65,000 -12,000 25,000 6Explanation / Answer
b) If you want to select D over C, we need to reduce life time to make AW greater than C,but if we extend this life time, it widens the gap and B cant be selected.
a) Machine C Machine D PV of First cost @155% -34782.609 -56521.7391 PV of Salvage value @15% 3922.82129 10808.1899 Sum of PV's -30859.787 -45713.5492 Annual maintenance cost -10000 -12000 AW (40,859.79) (57,713.55)b) If you want to select D over C, we need to reduce life time to make AW greater than C,but if we extend this life time, it widens the gap and B cant be selected.
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