The Ecology Group wishes to purchase a piece of equipment for various metals recycling, Machine 1 costs $123,000, has a life of 10 years, has an AOC of $5,000, and requires one operator at a cost of $24 per hour to process 16 tons per hour. Machine 2 costs $70,000, has a life of 6 years, has an AOC of $2,500, and requires two operators at a cost of $26 per hour for each operator to process 6 tons per hour. Determine the breakeven tonnage of scrap metal at /= 7% per year and select the better machine for a processing level of 1,000 tons per year. The breakeven tonnage of scrap metal is machine 1 V. tons, and the better machine for a processing level of 1000 tons per year is

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The Ecology Group wishes to purchase a piece of equipment for various metals recycling. Machine 1 costs $123,000, has a life of 10
years, has an AOC of $5,000, and requires one operator at a cost of $24 per hour to process 16 tons per hour. Machine 2 costs
$70,000, has a life of 6 years, has an AOC of $2,500, and requires two operators at a cost of $26 per hour for each operator to
process 6 tons per hour. Determine the breakeven tonnage of scrap metal at /= 7% per year and select the better machine for a
processing level of 1,000 tons per year.
The breakeven tonnage of scrap metal is
SA
machine 1
tons, and the better machine for a processing level of 1000 tons per year is
Transcribed Image Text:The Ecology Group wishes to purchase a piece of equipment for various metals recycling. Machine 1 costs $123,000, has a life of 10 years, has an AOC of $5,000, and requires one operator at a cost of $24 per hour to process 16 tons per hour. Machine 2 costs $70,000, has a life of 6 years, has an AOC of $2,500, and requires two operators at a cost of $26 per hour for each operator to process 6 tons per hour. Determine the breakeven tonnage of scrap metal at /= 7% per year and select the better machine for a processing level of 1,000 tons per year. The breakeven tonnage of scrap metal is SA machine 1 tons, and the better machine for a processing level of 1000 tons per year is
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