Two processes are under consideration for a certain product

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Q. Two Processes are under consideration for a certain production. Process A needs acquisition of a new machine which is estimated to have an initial cost of $65,000 also a salvage value of $52,000 at the end of its useful life of 6 yrs. In addition, the process needs a fixed cost of $47,000 per yr also a inconsistent cost of $250 per day. Alternatively, Process B needs utilize of human labor. The process will need 6 workers; every earning $200 per day also will have a fixed cost of $36,000 per yr also additional inconsistent costs of $200 per day. Conclude the minimum number of days per yr required for the two processes to break even at an interest rate of 2% per yr.

Reference no: EM1323040

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