Two machines are being considered for the same task machine, Ask an Expert

Management Studies

Two machines are being considered for the same task. Machine A costs $18000 new and is estimated to last 6 years. The cost to replace machine A will be 4 percent more each year than it was the year before It will cost $1200 per year to operate and maintain machine A. It will have a trade-in (salvage) value of $1500. Machine B costs $38000 to buy, will last 12 years and will have a trade in value of $2000. The cost of operation and maintenance for Machine B is $700 per year. Compare the two option based on a present worth analysis. Include a cash flow diagram for each option and assume all interest rates are 8% per year.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92542422

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 joe a 27 yeark old man was in a car accident in july 2012

1. Joe, a 27 yeark old man, was in a car accident in July 2012. He was paralyzed from the neck down, and is now in a wheelchair. Joe graduated from college in June 2008 and got his first job in July 2008, with an annual ...

Prompt to begin you will first review a scenario about an

Prompt: To begin, you will first review a scenario about an organization that is experiencing challenges. After reading the scenario, you will then need to determine what these challenges are, consider how they should be ...

Develop a 1050-word evaluation describing business

Develop a 1,050-word evaluation describing business structure and financial statements, including the following: Identify and describe the legal categories of a business organization contrasting tax-related advantages an ...

Your organization wants to improve employee motivation the

Your organization wants to improve employee motivation. The employees already appear to have strong P-O expectancies and the outcomes valences are quite favorable for supporting strong performance. However, employees see ...

Health policy analysisdoes blue ridge paper productsrsquo

Health Policy Analysis Does Blue Ridge Paper Products’ (BRPP) policy differ from a traditional employee stock ownership plan (ESOP)? Are there any ethical concerns in the case? Why? Why not? What important lesson(s) are ...

This feature describes tescorsquos international expansion

This feature describes Tesco’s international expansion strategy. Tesco, the British grocer, has established operations in a number of foreign countries. Typically, the company seeks underdeveloped markets in developing n ...

1 you are making the case to the advisory board of your

1. You are making the case to the advisory board of your company for a business ethics program. In addition to avoiding the damage to your company’s reputation that results from unethical behavior, what are the remaining ...

1 a new full-service attendant-staffed fuel and car service

1. A new full-service, attendant-staffed fuel and car service station on Interstate 95 will service only northbound cars. The manager estimates that customers will arrive every 4 minutes and will require 6 minutes to be ...

Nbspusing workforce scheduling to lower labour costs 1

Using Workforce Scheduling to Lower Labour Costs, 1. Discuss the challenges the organisations have in relation to workforce scheduling. 2. Explain why workforce scheduling technology is particularly suitable to large org ...

1 usage segmentation in health care has been applicable in

1. Usage segmentation in health care has been applicable in situations in which: A. physicians use their skills in many different geographic locations. B. the efficacy of a pharmaceutical drug can be used in alternative ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert