Two machines are being taken into consideration for the manufacturing of a selected component for...
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Two machines are being taken into consideration for the manufacturing of a selected component for which there's a protracted term-demand. Machine A value P50,000.00 and is anticipated to final three years and feature a P10,000 salvage value. Machine B expenses P75,000.00 and is anticipated to final 6 years and feature 0 salvage value. Machine A can produce a component in 18 seconds; Machine B calls for simplest 12 seconds in step with component. The out-of-pocket hourly value of operation is P38.00 for A and P30.00 for B. Monthly Maintenance value are P200.00 for A and P220.00 for B. If hobby on invested capital is 25%, decide the range of components in step with yr. at which the machines are similarly economical. If the anticipated range of components in step with yr. is extra than this break-even quantity, which gadget might be favored?
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