The marr is 10 per year determine the minimum yards per


A jeans manufacturing company is evaluating the purchase of a new automatic cutting machine with fuzzy-logic features. The machine will have a first cost of $40,000, a life of 10 years, and no salvage value. The maintenance cost of machine is expected to be $2,000 per year. The machine will require one operator at a total cost of $30 per hour. A total of 2,500 yards of material can be each hour by the machine. Alternatively if human labor is used, six workers, each earning $14 per hour, are required to cut 2,500 yards per hour. The MARR is 10% per year. Determine the minimum yards per year to justify the purchase of the automatic machine.

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Financial Management: The marr is 10 per year determine the minimum yards per
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