. An electric switch manufacturing company has to choose one of three different assembly methods. Method A will have a first cost of $40,000, an annual operating cost of $9000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6000 over its 4-year service life. Method C will cost $130,000 initially with an annual operating cost of $4000 over its 8-year life. Methods A and B will have no salvage value, but method C will have some equipment worth an estimated $12,000. Which method should be selected? Use present worth analysis at an interest rate of 10% per vear.
. An electric switch manufacturing company has to choose one of three different assembly methods. Method A will have a first cost of $40,000, an annual operating cost of $9000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6000 over its 4-year service life. Method C will cost $130,000 initially with an annual operating cost of $4000 over its 8-year life. Methods A and B will have no salvage value, but method C will have some equipment worth an estimated $12,000. Which method should be selected? Use present worth analysis at an interest rate of 10% per vear.
Residential Construction Academy: House Wiring (MindTap Course List)
4th Edition
ISBN:9781285852225
Author:Gregory W Fletcher
Publisher:Gregory W Fletcher
Chapter19: Service Panel Trim-out
Section: Chapter Questions
Problem 19RQ
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.Recommended textbooks for you
Residential Construction Academy: House Wiring (M…
Civil Engineering
ISBN:
9781285852225
Author:
Gregory W Fletcher
Publisher:
Cengage Learning
Residential Construction Academy: House Wiring (M…
Civil Engineering
ISBN:
9781285852225
Author:
Gregory W Fletcher
Publisher:
Cengage Learning