A company is planning to install a new automated concrete block making machine. Four different brands are available. The related cost information for these four brands are as follows \table[[, Brand,], [, P1, P2, P3, P4], [\ table[[Initial], [investment]], $24,000, $30, 400, $49,600,$ 52,000. Solve using excel spreadsheet!! 2. A company is planning to install a new automated concrete block making machine. Four different brands are available. The related cost information for these four brands are as follows Initial investment Brand P1 P2 P3 P4 $24,000 $30,400 $49,600 $52,000 Useful life 5 5 5 5 (years) Annual expenses Power $2,720 $2,720 $4,800 $5,040 labor $26,400 $24,000 $16,800 $14,800 Maintenance $1600 $1,800 $2,600 $3,000 Insurance $480 $608 $992 $1040 Percent of 95% 92% 96% 91% nondetective items Assume that each brand has the same capacity 120,000 units per year and has no market value at the end of useful life. Which brand should be selected if all non-defective units can be sold at a selling price of $0.875 per unit by finding Present worth, Annual worth and Future worth? Considering MARR 10 Percent, solve by spreadsheet.
A company is planning to install a new automated concrete block making machine. Four different brands are available. The related cost information for these four brands are as follows \table[[, Brand,], [, P1, P2, P3, P4], [\ table[[Initial], [investment]], $24,000, $30, 400, $49,600,$ 52,000. Solve using excel spreadsheet!! 2. A company is planning to install a new automated concrete block making machine. Four different brands are available. The related cost information for these four brands are as follows Initial investment Brand P1 P2 P3 P4 $24,000 $30,400 $49,600 $52,000 Useful life 5 5 5 5 (years) Annual expenses Power $2,720 $2,720 $4,800 $5,040 labor $26,400 $24,000 $16,800 $14,800 Maintenance $1600 $1,800 $2,600 $3,000 Insurance $480 $608 $992 $1040 Percent of 95% 92% 96% 91% nondetective items Assume that each brand has the same capacity 120,000 units per year and has no market value at the end of useful life. Which brand should be selected if all non-defective units can be sold at a selling price of $0.875 per unit by finding Present worth, Annual worth and Future worth? Considering MARR 10 Percent, solve by spreadsheet.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 5E
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Question
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![A company is planning to install a new automated
concrete block making machine. Four different brands
are available. The related cost information for these four
brands are as follows \table[[, Brand,], [, P1, P2, P3, P4], [\
table[[Initial], [investment]], $24,000, $30, 400, $49,600,$
52,000. Solve using excel spreadsheet!!
2. A company is planning to install a new automated concrete block making machine. Four
different brands are available. The related cost information for these four brands are as follows
Brand
P1
P2
P3
P4
Initial
investment
$24,000
$30,400
$49,600
$52,000
Useful life
5
5
5
5
(years)
Annual expenses
Power
$2,720
$2,720
$4,800
$5,040
labor
$26,400
$24,000
$16,800
$14,800
Maintenance
$1600
$1,800
$2,600
$3,000
Insurance
$480
$608
$992
$1040
Percent of
95%
92%
96%
91%
nondetective
items
Assume that each brand has the same capacity 120,000 units per year and has no market value
at the end of useful life. Which brand should be selected if all non-defective units can be sold at
a selling price of $0.875 per unit by finding Present worth, Annual worth and Future worth?
Considering MARR 10 Percent, solve by spreadsheet.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06c7c8d5-2c04-49b7-8fe3-106e5cab0a5d%2Fdd7133ae-54e9-40fa-8c98-16b9907dbdae%2Fbceibr9_processed.png&w=3840&q=75)
Transcribed Image Text:A company is planning to install a new automated
concrete block making machine. Four different brands
are available. The related cost information for these four
brands are as follows \table[[, Brand,], [, P1, P2, P3, P4], [\
table[[Initial], [investment]], $24,000, $30, 400, $49,600,$
52,000. Solve using excel spreadsheet!!
2. A company is planning to install a new automated concrete block making machine. Four
different brands are available. The related cost information for these four brands are as follows
Brand
P1
P2
P3
P4
Initial
investment
$24,000
$30,400
$49,600
$52,000
Useful life
5
5
5
5
(years)
Annual expenses
Power
$2,720
$2,720
$4,800
$5,040
labor
$26,400
$24,000
$16,800
$14,800
Maintenance
$1600
$1,800
$2,600
$3,000
Insurance
$480
$608
$992
$1040
Percent of
95%
92%
96%
91%
nondetective
items
Assume that each brand has the same capacity 120,000 units per year and has no market value
at the end of useful life. Which brand should be selected if all non-defective units can be sold at
a selling price of $0.875 per unit by finding Present worth, Annual worth and Future worth?
Considering MARR 10 Percent, solve by spreadsheet.
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Step 1: Define Present Worth(PW) and Annual Worth(AW)
VIEWStep 2: Calculated Present Worth and Annual Worth of P1
VIEWStep 3: Calculated Present Worth and Annual Worth of P2
VIEWStep 4: Calculated Present Worth and Annual Worth of P3
VIEWStep 5: Calculated Present Worth and Annual Worth of P4
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