A Slip Sheet Manufacturer Is Considering Two Machines

question 10

Essay

A slip sheet manufacturer is considering two machines. An engineer is asked to perform analyses to select the best machine. She prepares the following information for the evaluation. All machines have a useful life of 5 years. If the company's MARR is 4% per year, which machine should be selected. $$\begin{array} { | l | l | l | } \hline \text { Machine } & X & Y \\\hline \text { First costs } & \$ 52,000 & \$ 37,000 \\\hline \text { Annual expenses } & \$ 5750 & \$ 8050 \\\hline \text { Annual revenue } & \$ 15,250 & \$ 15,750 \\\hline \text { Salvage value } & \$ 23,400 & \$ 5550 \\\hline \text { IRR } ( \% ) & 9.10 & 5.62 \\\hline\end{array}$$

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Definitions:

Calcium Deficiency

A condition where the body does not have enough calcium, leading to weakened bones and other health issues.

Health

A state of complete physical and mental or social well-being.

Well-Being

A state of being comfortable, healthy, or happy, encompassing physical, mental, and emotional health.

Chemical Additives

Substances added to products to enhance or preserve their properties, such as flavor, color, or shelf life.