Question
In: Finance
A company needs a modern material handling system for facilitating access to and from a busy...
A company needs a modern material handling system for facilitating access to and from a busy warehouse. If the company’s management use a MARR (given in the below table) in their economic decisions.The company found two systems, the first system is a second-hand and the second system is a new system. The economic consequences of both systems are given in the below table for each group. PART1: For the second-hand system alternative:
a).Calculate the simple and discounted payback periods.
b).What are the annual savings required for the system to breakeven?
investment cost :192,500$
annual expenses: 51,800$
annual savings: 104,500$
useful life: 8 years
salvage value: 68,000$
MARR: 21.6% per year
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A company needs a modern material handling system for facilitating access to and from a busy...
A company needs a modern material handling system for
facilitating access to and from a busy warehouse. If the company’s
management use a MARR (given in the below table for each group) in
their economic decisions.The company found two systems, the first
system is a second-hand and the second system is a new system. The
economic consequences of both systems are given in the below table
for each group. PART 2: Considering the two mutually exclusive
alternatives and assume permanent...
A company needs a modern material handling system for facilitating access to and from a busy...
A company needs a modern material handling system for
facilitating access to and from a busy warehouse. If the company’s
management use a MARR in their economic decisions.
The company found two systems, the first system is a second-hand
and the second system is a new system.
The economic consequences of both systems are given in the below
table.
Answer the following questions:
MARR= 22.5% per year
For Second-Hand system:
Investment Cost= $146,600
Annual expenses=$17,300
Annual savings= $61,000
Useful Life...
A company needs a modern material handling system for facilitating access to and from a busy...
A company needs a modern material handling system for
facilitating access to and from a busy warehouse. If the company’s
managementuse a MARR (given in the below table) in their economic
decisions.
The company found two systems, the first system is a second-hand
and the second system is a new system. The economic consequences of
both systems are given in the below table.
MRR=17.1% per year
For Second-Hand system:
Investment Cost= 164500$
Annual expenses=46700$
Annual savings= 82600$
Useful Life =...
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