A cherry processing facility in Northern Michigan processes…
A cherry processing facility in Northern Michigan processes both sweet and tart cherries for local growers. The facility needs to install a new cherry pitter. An analyst recently obtained the following estimates. Preliminary feasibility study (this year, year 0) $5,000 Purchase & install system (this year, year 0) $250,000 Annual operating costs (years 1-8) $15,000 in year 1, increasing by $3,000 each year Salvage value (year 8) $25,000 Other phase-out activities (year 8) $3,750 The cherry pitter would be used for eight years. The facility uses a before-tax MARR of 8% per year for these types of decisions. (Round to nearest dollar.) What is the capital recovery (CR) cost of the system? $ What is the annual equivalent worth of the operating costs? $ What is the annual equivalent cost of this project? $