Question Solved1 Answer Consider the four plastic molding presses of Example 6-2. Suppose that each press is still capable of producing 120,000 total units per year, but the estimated reject rate is different for each alternative. This means that the expected revenue will differ among the alternatives since only non-defective units can be sold. The data for the four presses are summarized below. The life of each press (and the study period) is five years. Press P1 P2 P4 Capital investment $24,000 $30,400 $49,600 $52,000 Total annual expenses $31,200 $29,128 $25,192 $22,880 Reject rate 8.4% 0.3% 2.6% 5.6% P3 If all non-defective units can be sold for $0.375 per unit, which press should be chosen? Solve for PW, AW, and FW with a MARR of 5% of each press.

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Transcribed Image Text: Consider the four plastic molding presses of Example 6-2. Suppose that each press is still capable of producing 120,000 total units per year, but the estimated reject rate is different for each alternative. This means that the expected revenue will differ among the alternatives since only non-defective units can be sold. The data for the four presses are summarized below. The life of each press (and the study period) is five years. Press P1 P2 P4 Capital investment $24,000 $30,400 $49,600 $52,000 Total annual expenses $31,200 $29,128 $25,192 $22,880 Reject rate 8.4% 0.3% 2.6% 5.6% P3 If all non-defective units can be sold for $0.375 per unit, which press should be chosen? Solve for PW, AW, and FW with a MARR of 5% of each press.
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Transcribed Image Text: Consider the four plastic molding presses of Example 6-2. Suppose that each press is still capable of producing 120,000 total units per year, but the estimated reject rate is different for each alternative. This means that the expected revenue will differ among the alternatives since only non-defective units can be sold. The data for the four presses are summarized below. The life of each press (and the study period) is five years. Press P1 P2 P4 Capital investment $24,000 $30,400 $49,600 $52,000 Total annual expenses $31,200 $29,128 $25,192 $22,880 Reject rate 8.4% 0.3% 2.6% 5.6% P3 If all non-defective units can be sold for $0.375 per unit, which press should be chosen? Solve for PW, AW, and FW with a MARR of 5% of each press.
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The problem can be effectively and easily solved using Excel. The image from excel along ... See the full answer