In: Civil Engineering
The machines shown below are under consideration for an improvement to an automated candy bar wrapping process. Determine which machine should be selected on the basis of an Annual Worth Analysis using an interest rate of 8% per year. (50 points)
Machine C |
Machine D |
|
First cost, $ |
–40,000 |
–65,000 |
Annual cost, $/year |
–10,000 |
–12,000 |
Salvage value, $ |
12,000 |
25,000 |
Life, years |
3 |
6 |