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
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
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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