Widget Example 3 (Breakeven Analysis)

Widget Example 3 (Breakeven Analysis) - $2,300,000 Salvage...

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Widget Example 3 (Breakeven Analysis) ACME Corporation is considering making widgets to diversify their product line. They are comparing two widget-making machines whose costs and capacities are shown below: Item A B Initial Cost $2,000,000
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Unformatted text preview: $2,300,000 Salvage Value $200,000 $250,000 Service Life 10 yrs 12 yrs O&M Cost $140,000/yr $80,000/yr Variable Cost $100/each $110/each Assuming a 15% MARR, at what annual production level would you choose Machine B over Machine A?...
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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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