Cupcakes can be produced on two different automation lines. Detailed information about each production line can be found in the table below. How many tons per year would be required to justify choosing the first production line if the MARR was 15% per year? Note that the solution is in $1k. (15 marks)
able[[,Production line " 1 ",Production line "2"],[Initial cost, $1k,500,20],[Salvage value, $1k,3,0],[Maintenance and operation cost, $1k/year 20,10,],[Raw material cost, $1(k)/() ton,3,17],[Life in years,10,5]]
Cupcakes can be produced on two different automation lines.Detailed information about each production line can be found in the table below.How many tons per year would be required to justify choosing the first production line if the MARR was 15% per year? Note that the solution is in $1k.15marks)
Productionline"1"
Productionline"2"
Initial cost,$1k
500
20
Salvage value,$1k
3
Maintenance and operation cost,$1k/year20
10 17 5
Raw material cost,$1k/ton
3 10
Life in years