Problem
A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information:
Annual Annual Power
First Labor and Maintenance
Degree Cost Expense Expense
A $10,000 $9,000 $500
B 14,000 7,500 800
C 20,000 5,000 1,000
D 30,000 3,000 1,500
Determine which is best by after-tax analysis using an income tax rate of 40%, an after-tax MARR of 15%, and SL depreciation. Assume that each has a life of five years and no BV or MV.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.