3. Machine A costs $2,000, has zero salvage value at any time, and has an associated labor of $11.4 for each piece produced on it. Machine B costs $36,000, has zero salvage value at any time, and has an associated labor cost of $8.3. Neither machine can be used except to produce the produce described. If the interest rate is 6% and the annual rate of production is 3,000 units, how many years will it take for the cost of the two machines to break even?

3. Machine A costs $2,000, has zero salvage value at any time, and has an associated labor of $11.4 for each piece produced on it. Machine B costs $36,000, has zero salvage value at any time, and has an associated labor cost of $8.3. Neither machine can be used except to produce the produce described. If the interest rate is 6% and the annual rate of production is 3,000 units, how many years will it take for the cost of the two machines to break even?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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