"I'm not sure we should lay out $290,000 for that automated welding machine," sald Jim Alder, president of the Superior Equipment Company "That's a lot of money, and it would cost us $82,000 for software and installation, and another $45,600 per year just to maintain the thing In addition, the manufacturer admits it would cost $45,000 more at the end of three years to replace worn-out parts" "I admit it's a lot of money," sald Franci Rogers, the controller "But you know the turnover problem we've had with the welding crew This machine would replace six welders at a cost savings of $112,000 per year And we would save another $7,300 per year in reduced material waste When you figure that the automated welderwould last for six years, I'm sure the return would be greater than our 15% required rate of return." "I'm still-not convinced," countered Mr. Alder "We can only get $16,000 scrap value out of our old welding equipment if we sell it now, and in six years the new machine will only be worth $28,000 for parts. But have your people work up the figures and we'll talk about them at the executive committee meeting tomorrow" Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor(s) using tables Required: 1 Compute the annual net cost savings promised by the automated welding machine 2a Using the data from Required 1 and other dat a from the problem, compute the automated welding machine's net present value 2b. Would you recommend purchasing the automated welding machine? 3. Assume that management can identify several intangible benefits assoclated with the automated welding machine, including greater flexibility in shifting from one type of product to another, improved quality of output, and faster delivery as a result of reduced throughput time. What minimum dollar value per year would management have to attach to these intangible benefits in order to make the new welding machine an acceptableinvesment? the new welding machine an acceptable investment? Complete this question by entering your answers in the tabs below. Assume that management can identify several intangible benefits associated with the automated welding machine, including greater flexibility in shifting from one type of product to another, improved quality of output, and faster delivery as a result benefits in order to time. What minimum dollar value per year would management have to attach to these intangible benefits in order to make the new welding machine an acceptable investment? Note: Round your final answer to the nearest whole dollar amount