Pace Automation Corporation in Cookeville, Tennessee must choose the better economical alternative between the two listed below. If 1,000 units are required per year, which alternative is cconomically attractive? Assume that the life of the automated equipment is 5 years. O a Alternative A Skilled Operator at $25 per hour, 35 minutes per unit of skilled labor time is required, Ob. Unskilled operator at $12 per hour plus automated equipment costing $50,000; 10 minutes of operator time per unit is required. Alternative B QUESTION 9 The present worth of an amount of money "Y" that will be received 10 yeart from now is $10,000. At an interest rate of 8% per year, the value of "Y" ten years from now is equal to: Oa $19,525 Ob$16.756 OC$18,000 Od $21,589

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
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Pace Automation Corporation in Cookeville, Tennessee must choose the better cconomical alternative
between the two listed below. If 1,000 units are required per year, which alternative is cconomically
attractive? Assume that the life of the automated equipment is 5 years.
O a
Alternative A
Skilled Operator at $25 per hour, 35 minutes per unit of skilled labor time is required.
Unskilled operator at $12 per hour plus automated equipment costing $50,000; 10
minutes of operator time per unit is required.
Ob.
Alternative B
QUESTION 9
The present worth of an amount of money "Y" that will be received 10 yea from now is $10,000. At an interest rate of
8% per year, the value of "Y" ten years from
now is equal to:
Oa $19,525
OD $16.756
OC$18,000
Od $21,589
Transcribed Image Text:Pace Automation Corporation in Cookeville, Tennessee must choose the better cconomical alternative between the two listed below. If 1,000 units are required per year, which alternative is cconomically attractive? Assume that the life of the automated equipment is 5 years. O a Alternative A Skilled Operator at $25 per hour, 35 minutes per unit of skilled labor time is required. Unskilled operator at $12 per hour plus automated equipment costing $50,000; 10 minutes of operator time per unit is required. Ob. Alternative B QUESTION 9 The present worth of an amount of money "Y" that will be received 10 yea from now is $10,000. At an interest rate of 8% per year, the value of "Y" ten years from now is equal to: Oa $19,525 OD $16.756 OC$18,000 Od $21,589
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