Case 10 modified_2_

Case 10 modified_2_ - MIKEBURCHAM MachineA MachineB...

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MIKE BURCHAM Machine A Machine B Machine C Machine D Purchase Cost ($18,000) ($27,000) ($64,000) ($120,000) Annual Maintenance Cost ($1,350) ($2,430) ($4,250) ($14,400) Number of Operators 1 1 0.5 0 Pieces per Hour 6 12 30 30 Production quota (per year) 120,000 120,000 120,000 120,000 Opering hours (per year) 2,000 2,000 2,000 2,000 Operato pay (per hour) ($20) ($20) ($20) ($20) Interest Rate 15% 15% 15% 15% Amount of machines Needed 10 5 2 2 Revenue per unit $5  $5  $5  $5  Material cost/unit ($0.50) ($0.50) ($0.50) ($0.50) Shipping cost/unit ($1) ($1) ($1) ($1) Total Cost per year ($593,500) ($392,150) ($228,500) ($208,800) Total Revenue per year $600,000  $600,000  $600,000  $600,000  NPV Machine A Machine B Machine C Machine D NPV(t=0) -180000 -135000 -128000 -240000 NPV(t=1) 5652.17 180739.13 323043.48 340173.91 NPV(t=2) 4914.93 157164.46 280907.37 295803.4 NPV(t=3) 4273.86 136664.75 244267.28 257220.35 NPV(t=4) 3716.4 118838.91 212406.33 223669.87
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Case 10 modified_2_ - MIKEBURCHAM MachineA MachineB...

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