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A Assumptions Cost of new shrinkwrap machine plus installation = $25,000 Average wait time per warehouse picker per day = 30 minutes Number of warehouse
A Assumptions Cost of new shrinkwrap machine plus installation = $25,000 Average wait time per warehouse picker per day = 30 minutes Number of warehouse pickers = 12 Hourly wage of warehouse personnel = $20.00 Foodbank is open 5 days a week, 52 weeks a year, except for 10 holidays Expected useful life of machine = 10 years Expected salvage value = $2,100 What is the expected net cash inflow per year from purchasing a second shrinkwrap machine (i.e., how much cost could be saved each year by eliminating the wait time)? What is the payback period of the second shrinkwrap machine? Round your answer to the nearest two decimal places. What would the expected net cash inflow per year be if the hourly wage rate used for this analysis was increased by 20% to reflect the cost of employee benefits? What is the payback period of the second shrinkwrap machine when the increased wage rate is used to calculate the expected net cash inflow per year? Round your answer to the nearest two decimal places. Did the payback period using the increased hourly wage rate increase or decrease as compared to the original payback period using the hourly rate without any benefits included? Explain
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