Actually the second and third picture is the question from the first picture. I type it instead of send the image again. It means that you just ignore the first picture and refer to the second and third picture only.

Damon roucis, cis invesgaung the purchase or a room or use on the company s assemo ne secretaresing to me robot are provided below. 3 Get the retot Installation and software awal savings in evento carrying coats al increase in power and maintenance costs Salvage value in 5 years Veful life $ 2,650,00 495.00 219.00 $ 10, $ 79,000 5 years 20 Engineering studies suggest that use of the robot will result in a sings of 34,000 direct lobor hours each year. The laborates $18 per hout Also, the smoother work flow made possible by the use of automation will allow the company to reduce the amount of nventory on hand by S409,000 This inventory recluction will take place at the end of the first year of operation the released funds wil be available for use isewhere in the company Saxon Products has a 23% required rate of return Click here to view Exhibet. and Exhib3B-2. to determine the appropriate discount factors using tables Required: 1 Determine the annual net cost savings if the robot is purchased. Do not include the 5909.000 inventory reduction or the salvage value in this computation) 2-a. Compute the represent value of the proposed investment in Pe robot 26 Based on these data, would you recommend that the robot be purchased 34 Assume that the robot is purchased. Howeve due to unforeseen problems, sottware and installation costs were $84.000 more than estimated and direct labor could only be reduced by 27.000 hours per year her than the original state of 34.000 hours. Assuming that all other cost data is accurate, what would postaudit suggest is the actual net present value of this investment 3-6. Does tear that the company made a wise nvestment 4. Which of the following are intangible benefits associated with the new automated equipment? 4. Based on your analysis in Requirement 3 above, come for the president the minimum dolor amount of annual cash flow that would be needed from the benefits in part for the wtomated equipment to yield 23 rate of retum EN + Expert Q&A + Saxon Products, Inc., is investigating the purchase of a robot for use on the company's assembly line. Selected data relating to the robot are provided below: Cost of the robot $ 2,050,000 Installation and software $ 495,000 Annual savings in inventory carrying costs $ 219,000 Annual increase in power and maintenance costs $ 39,000 Salvage value in 5 years $ 79,000 Useful life 5years Engineering studies suggest that use of the robot will result in a savings of 34,000 direct labor-hours each year. The labor rate is $18 per hour. Also, the smoother work flow made possible by the use of automation will allow the company to reduce the amount of inventory on hand by $409,000. This inventory reduction will take place at the end of the first year of operation, the released funds will be available for use elsewhere in the company. Saxon Products has a 23% required rate of return. + Expert Q&A + using tables. Required: 1. Determine the annual net cost savings if the robot is purchased. (Do not include the $409,000 inventory reduction or the salvage value in this computation.) 2-a. Compute the net present value of the proposed investment in the robot. 2-b. Based on these data, would you recommend that the robot be purchased? 3-a. Assume that the robot is purchased. However, due to unforeseen problems, software and installation costs were $84,000 more than estimated and direct labor could only be reduced by 27,000 hours per year, rather than the original estimate of 34,000 hours. Assuming that all other cost data is accurate, what would a postaudit suggest is the actual net present value of this investment? 3-b. Does it appear that the company made a wise investment? 4-a. Which of the following are intangible benefits associated with the new automated equipment? 4-b. Based on your analysis in Requirement 3 above, compute for the president the minimum dollar amount of annual cash inflow that would be needed from the benefits in (a) above for the automated equipment to yield a 23% rate of return