Pigs-R-Us Example 4 (Incremental B-C Analysis)

Pigs-R-Us Example 4 (Incremental B-C Analysis) - year to...

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Pigs-R-Us Example 4 (Incremental B-C Analysis) Pigs-R-Us is evaluating three machines to automate their meat packing operation. Each machine has a useful life of 10 years and will benefit the company by providing $50,000 per year in labor savings. Machine A costs $200,000 and has a salvage value of $10,000. It costs $9000 per year to operate and maintain. Machine B is more energy efficient and will only cost $6000 per
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Unformatted text preview: year to operate, but it costs $20,000 more. It has a salvage value of $20,000. Machine C is a bare-bones model. It costs $170,000 to purchase and $13,000 per year to operate and maintain. It has no salvage value. Use incremental B-C analysis with MARR = 10% to select the best machine if any ....
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This note was uploaded on 12/07/2011 for the course CIVL 4111 taught by Professor Moore,l during the Fall '08 term at U. Memphis.

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