Question

Poly-Chem Plastics is considering two types of injection molding machines—hydraulic and electric. The hydraulic press (HP) will have a first cost of $600,000, annual costs of $200,000, and a salvage value of $70,000 after 5 years. Electric machine technology (EMT) will have a first cost of $800,000, annual costs of $150,000, and a salvage value of $130,000 after 5 years.

Plot the AW versus i graph using spreadsheet for each alternative’s cash flows, and utilize it to determine the largest MARR that will justify the EMT extra investment of $200,000.

Answer 1

copied it as it a spread sheet data.

Answer:

AW versus i graph using spreadsheet for each alternative’s cash flows, and utilize it to determine the largest MARR that will justify the EMT extra investment of $200,000 is: