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ass07_due101408(2) - ISE460 Fall 2008 Session 13 Assignment...

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ISE460 Fall 2008 Session 13 10/07/08 Assignment 07 Due 10/14/08 Individual assignment! No.1 (1 1/2 points) Covington Corporation purchased a vibratory finishing machine for $19,000 in year 0. The useful life of the machine is 10 years, at the end of which the machine is estimated to have a salvage value of zero. The machine is capable of making 700,000 parts per year. The revenue per unit part is $0.0095. The annual operating and maintenance expenses are estimated to be $500. If Covington’s MARR is 25%, how many years will it take before this machine becomes profitable? No.2 (1 ½ points) An electronics company purchased a soldering machine for $300,000. Its life is 5 years and salvage value is $80,000. If they produce one million printed circuit boards a year, how much will this purchase add to the cost of each board? (ignore depreciation and taxes) (Use an interest rate of 15%) No. 3 (1 ½ points) An airline is considering two types of engine systems for use in its planes. Each has the same life and the same maintenance and repair record.
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