Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Comp ny XYZ is electronic equipment manufacturer in which the production is done on ten di...

Comp ny XYZ is electronic equipment manufacturer in which the production is done on ten different workstations. The production process requires extensive manual tasks involving wrists and hands motion

Comp ny XYZ is electronic equipment manufacturer in which the production is done on ten different workstations. The production process requires extensive manual tasks involving wrists and hands motions. The company is spending about $21,000 extra each year on workers compensation. This company has 60 employees with 50% turnover rate per year. The ergonomic experts have two suggestions to improve the design of workstations and the expenses and savings are presented here: Design 1-this design will need $250 of materials and $80 labor per workstation, $55 training per employee. The maintenance expenses are $25 per workstation per year. This design is expected to have a lifecycle of seven years. The estimated salvage value is $35 per workstation at the end of its lifecycle. It is expected that this design improve the production by $30,000 per year. Design 2-this design will need $800 of new tools/equipment and $10 installation per workstation with no training costs. The maintenance expenses start at $70 per workstation per year and increases by $20 every year during its lifecycle. This design is expected to have a lifecycle often years. The estimated salvage value is $80 per workstation at the end of its lifecycle. It is expected that this design improve the production by $32,000 per year. Assuming that annual interest rate is 7.5%: 1- Create the cash flow diagram for each design. 2- Conduct a Net Present worth analysis on these two designs and provide your final recommendation based on the result of your analysis. English 3... english 3 1615701

The formula in the second page
Do the two questions
Homework Homework 10 Comp ny XYZ is electronic equ
Homework Homework 10 Comp ny XYZ is electronic equ

Jul 03 2021 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions