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Business, 01.05.2021 01:20 joselinen

An airport needs a modern material handling system for facilitating access to and from a busy maintenance hangar. A​ second-hand system will cost​ $75,000. A new system with improved technology can decrease labor hours by​ 20% compared to the used system. The new system will cost​ $150,000 to purchase and install. Both systems have a useful life of five years. The market value of the used system is expected to be​ $20,000 in five​ years, and the market value of the new system is anticipated to be​ $50,000 in five years. Current maintenance activity will require the used system to be operated eight hours per day for 20 days per month. If labor costs​ $40 per hour and the MARR is​ 1% per​ month, which system should be​ recommended?

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