Question

Question 7 (10 points) The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Machine C Machine D First cost, $ -50,000 -65,000 Annual cost, $/year 9,000 - 10,000 Salvage value, s 12,000 25,000 Life, years (Source: Blank and Tarquin) Based on the data provided and using an interest rate of 8% per year, the correct equation to calculate the Annual Worth of Machine D is: AWD--65,000(P/A, 8%, 6) +25,000(F/A, 8%, 6) -10,000 AWD=-65,000(A/P, 8%, 6) +25,000(A/F, 8%, 6)-10,000 AWD -65,000(A/P, 8%, 6) +25,000(A/F, 8%, 6) -10,000(A/P, 8%, 6) AWD- -65,000(A/P, 8%, 6) + 12,000(A/F, 8%, 6) -9,000

Answer 1

nswer: Answers Đ Given that Machinec Machine D - 50.000 -65000 Fierst cost, $ Annual cost $1 year Salvage value, $ Life, years -9.000 --10000 12000 25000 take machine D values. to know all of machine D. Frost cost $ = -65006 Annual Cost #lyear = -10000 Salinge value $ - 25000 Life.years 6 An interest rate = 8% [year. . then, ... Annual worth can be calculated by cesing equation. AWO = -65000 CAIP, 81,65+25 000 CAIF $40,6). -10000

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