Three products will be manufactured in the new facility at the Apex Manufacturing Company. They each require an indentical manufacturing operation, bu different production times, on broaching machine. Two alternative types of broaching machines (M1 and M2) are being considered for purchase. One machine type must be selected. For the same level of annual demand for the three products, annual production requirements (machine hours) and annual operating expenses (per machine) are listed as PRODUCT Machine M1 total 5700 hr Machine M2 total 4050 hr.Capital investiment $14,000 per Machine M1 & $24,000 per Machine M2. Expected life five years M1 eight years M2 Annual expenses $3,500 per Machine M1 $6,500 per Machine M2 Assumptions: The facility will operate 1800 hrs per year. Machine availability is 85% for Machine M1 and 80% for Machine M2. The yield of Machine M1 is 90%, and the yield for Machine M2 id 95%. Annual operating expenses are based on as assumed operation of 1800 hours per year, and workers are paid during any idle time of Machine M1 or Machine M2. Market values of both machines are negligible. Work on this problem on after-tax basis when the MARR is 15% per year. THe effective income tax rate is 50%, and MACRS depreciation is appropriate with a property class of five years. Recal that the market value of M1 and M2 are zero at the end of years five and eight, respectively. GDS Recovery Rates (rk) Year 5-Year propery class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 5 0.1152 6 0.0576 Calculate the AWM1 (15%) = Calculate the AWM2 (15%) = Based onthe values, select Machine M1 or M2? plz post a detail solution explaining how to do in excel table and put the detail solution formulas please for AW??
Discreet compounding 15% N
F/P P/F F/A P/A A/F A/P 1 1.1500 0.8696 1.0000 0.8696 1.000 1.1500 2 1.3225 0.7561 2.1500 1.6257 0.4561 0.6151 3 1.5209 0.6575 3.4725 2.2832 0.2880 0.4380 4 1.7490 0.5718 4.9934 2.8550 0.2003 0.3503 5 2.0114 0.4972 6.7424 3.3522 0.1483 0.2983 6 2.3131 0.4323 8.7537 3.7845 0.1142 0.2642 7 2.6600 0.3759 11.0668 4.1604 0.0904 0.2404 8 3.0590 0.3269 13.7268 4.4873 0.0729 0.2229 9 3.5179 0.2843 16.7858 4.7716 0.0596 0.2096 10 4.0456 0.2472 20.3037 5.0188 0.0493 0.1993
Three products will be manufactured in the new facility at the Apex Manufacturing Company. They each require an indentical manufacturing operation, bu different production times, on broaching machine. Two alternative types of broaching machines (M1 and M2) are being considered for purchase. One machine type must be selected. For the same level of annual demand for the three products, annual production requirements (machine hours) and annual operating expenses (per machine) are listed as PRODUCT Machine M1 total 5700 hr Machine M2 total 4050 hr.Capital investiment $14,000 per Machine M1 & $24,000 per Machine M2. Expected life five years M1 eight years M2 Annual expenses $3,500 per Machine M1 $6,500 per Machine M2 Assumptions: The facility will operate 1800 hrs per year. Machine availability is 85% for Machine M1 and 80% for Machine M2. The yield of Machine M1 is 90%, and the yield for Machine M2 id 95%. Annual operating expenses are based on as assumed operation of 1800 hours per year, and workers are paid during any idle time of Machine M1 or Machine M2. Market values of both machines are negligible. Work on this problem on after-tax basis when the MARR is 15% per year. THe effective income tax rate is 50%, and MACRS depreciation is appropriate with a property class of five years. Recal that the market value of M1 and M2 are zero at the end of years five and eight, respectively. GDS Recovery Rates (rk) Year 5-Year propery class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 5 0.1152 6 0.0576 Calculate the AWM1 (15%) = Calculate the AWM2 (15%) = Based onthe values, select Machine M1 or M2? plz post a detail solution explaining how to do in excel table and put the detail solution formulas please for AW??
| N | F/P | P/F | F/A | P/A | A/F | A/P |
| 1 | 1.1500 | 0.8696 | 1.0000 | 0.8696 | 1.000 | 1.1500 |
| 2 | 1.3225 | 0.7561 | 2.1500 | 1.6257 | 0.4561 | 0.6151 |
| 3 | 1.5209 | 0.6575 | 3.4725 | 2.2832 | 0.2880 | 0.4380 |
| 4 | 1.7490 | 0.5718 | 4.9934 | 2.8550 | 0.2003 | 0.3503 |
| 5 | 2.0114 | 0.4972 | 6.7424 | 3.3522 | 0.1483 | 0.2983 |
| 6 | 2.3131 | 0.4323 | 8.7537 | 3.7845 | 0.1142 | 0.2642 |
| 7 | 2.6600 | 0.3759 | 11.0668 | 4.1604 | 0.0904 | 0.2404 |
| 8 | 3.0590 | 0.3269 | 13.7268 | 4.4873 | 0.0729 | 0.2229 |
| 9 | 3.5179 | 0.2843 | 16.7858 | 4.7716 | 0.0596 | 0.2096 |
| 10 | 4.0456 | 0.2472 | 20.3037 | 5.0188 | 0.0493 | 0.1993 |
