The challenger system has a maximum useful life

Assignment Help Operation Management
Reference no: EM1389546

Halcrow, Inc., expects to replace a downtime tracking system currently installed on CNC machines. The challenger system has a first cost of $70,000 and an estimated annual operating cost of $20,000 in the first year. At an interest rate of 10% per year, determine the economic service life and corresponding AW value of the challenger system. Use a spreadsheet to plot the total AW curve and its components for the following conditions:

(a) The challenger system has a maximum useful life of 5 years, a uniform AOC cost of $20,000 over its useful life, and a $10,000 salvage value anytime it is replaced.

(b) The challenger system has an expected maximum life of 10 years, an AOC that will increase by 15% per year from the initial estimate of $20,000, and a salvage value that is expected to decrease by $1000 per year from the $10,000 estimated for the first year.

Reference no: EM1389546

Questions Cloud

Discounts are very commonly offered in this business : The prospective buyer says, "I would buy your line of cleaning products if you offered a quantity discount." The salesperson responded, "Discounts are very commonly offered in this business and if you will order today
Broken down in stomach : A drug employed for leukemia isn't broken down in stomach and is well absorbed by the intestine. However, the molecular form of  drug collected from the blood is not the same as the form that was swallowed by the patient.
Null hypothesis and alternative hypothesis of plant : The mean height of a certain plant is 160 centimeters. Suppose a botanist wants to carry out a hypothesis test to see if the mean height when these plants are treated with a certain chemical differs from 160. What is the null hypothesis and the al..
Diffusion of soluble nutrients : Since saprozoic is done through diffusion of soluble nutrients, I am not really sure which groups would do this. I know fungi is one of them, maybe the only one.
The challenger system has a maximum useful life : The challenger system has a maximum useful life of 5 years, a uniform AOC cost of $20,000 over its useful life, and a $10,000 salvage value anytime it is replaced.
Explain inherent weaknesses in change theory : Explain the inherent weaknesses in change theory which may influence real life situations or give rise to difficulties in process of applying theory.
Common stocks issued by henry harmon builders : Common stocks issued by Henry Harmon Builders paid stockholders $0.93 per share on an average price of $18.80 last year. The company expects to grow the dividend rate at a maximum
Characteristic of smooth muscle : Determine which unique characteristic of smooth muscle allows your stomach to streatch aas you eat and not contract immediatly to expel food?
Random sample of five accidents : A random sample of five accidents resulted in the following number of persons injured: 18, 15, 12, 19, & 21. Using the .01 significance level, can we conclude the population mean is less than 20 for all accidents?

Reviews

Write a Review

Operation Management Questions & Answers

  Solution-oriented decision models

Select a real company (not a retailer). Identify four decisions that the company makes at different levels of the organization. Explain the policies, procedures and decision-making tools which might be used to make each of the four decisions.

  Evaluate company q''s current attitude toward social

Evaluate Company Q's current attitude toward social responsibility. Recommend three actions that Company Q could take to improve the company's attitude toward social responsibility. When you use sources, include all in-text citations and references..

  Evaluate the concept of administrative liaison officer

Evaluate the concept of "administrative liaison officer" as a strategy for achieving integration. Is this an example of the mutual adjustment strategy?

  Work the linear programming word problem

Work the linear programming word problem below. A candy company makes three types of candy, solid-center, fruit-filled, and cream-filled, and packages these candies in three different assortments

  How do groups interact with each other both

How do groups interact with each other both from an internal and external standpoint?

  Explain how long does it take the average consumer

The process ends all consumers at step B4. The numbers in parentheses indicate the minutes it takes those activity TP process consumers. Explain how long does it take the average consumer to complete this process.

  Explain the best strategic planning and implementation

Explain the BEST strategic planning and implementation/execution you have observed. Discuss fully. (2) Explain the WORST strategic planning and implementation?

  Analyze this data using an appropriate control chart

Each week a sample of 100 residents is questioned on their feelings towards project. Results to date are shown below. Analyze this data using an appropriate control chart with a 5% risk of Type I error.

  Illustrate what is the minimum chesters elite

Assuming that Axe's awareness stays the same next year (77%), out of the promotion budgets below, Illustrate what is the minimum Chester's Elite product manager should spend in promotion to earn more awareness than Andrews' Axe product.

  Evaluate avon''s operations in global markets regarding

Evaluate Avon's operations in global markets regarding the use of international cadre development also building organization associates also independent representatives.

  In this economy customer service has become one

In this economy customer service has become one of the keys to survival. Using the Internet, do some research about Wal-Mart and McDonald's and their approach to customer service.

  Illustrate what you have learned in this course

illustrate what you have learned in this course or your future progress/improvement. State whether you achieved the course objectives.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd