New tech is in need of new jigs for some assembly equipment, Ask an Expert

Economics

New Tech is in need of new jigs for some assembly equipment. The jigs favored by the manufacturing engineer cost $30,000 and are expected to provide service for 6 years. The annual operating costs are estimated to be $2000. The industrial engineer favors a choice that costs $35,000 and that will also provide service for 6 years at an estimated annual cost of $1500. Using MACRS depreciation, a tax rate of 34%, and a MARR of 10%, which jigs should be chosen?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92638528

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