"I'm not sure we should layout $370,000 for that automated welding machine sold Jim Alder president of the Superior Equiment Company. "That's a lot of money, and it would cost us $98.000 for software and installation and another 564,800 per year just to maintain the thing. In addition, the manufacturer admit it would cost 561000 more at the end of three years to replace wom-out parts "I admit it's a lot of money" said 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 $128.000 per year. And we would save another $8.900 per year reduced material waste. When you figure that the automated welder would last for six years, I'm sure the return would be greater than our 13% required rate of return "I'm still not convinced," countered Mr. Alder. "We can only get $24,000 scrap value out of our old welding equipment we sell it now and in six years the new machine will only be worth $44,000 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 149-1 and Exhibit 148.2, to determine the appropriate discount factors) uning tables. Required: 1. Compute the annual net cost savings promised by the automated welding machine. 2a. Using the data from Required 1 and other data from the problem, compute the automated welding machine's not present value 2b. Would you recommend purchasing the automated welding machine? 3. 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 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 acceptable investment? ce F Preview File Edit View Go Tools Window Help Screen Shot 2020-11-207.36.00 PM ST SNOS VE 00000000000000000 SODOC 2060 0 0 0 0 0 0 0 0 0 0 0 2060 SEO OD 105260 000 100 90 0 0 0 0 0 0 COOOOO ODVODOO 0000 OOO OO 9580 OOOOOO COINCO O O O O 50 DO 25000 2000 1999 Oto COSEO ECO DOOM CO DO SO WOT09990000 DOMO to DOO O O O O O O O 000D SO 22000 ROTO O O O COCO O 920 TO WOWO NEO TOO 0 0 0 0 DODO ESTO LOBO GO OSOBOWO 3050 SPOO 7 D 1 OM 64004 000 0.00 0.00 0.00 0.322 026 020 030 0221 0201 000 000 0000000000030 0.30 026 026 027 02150000 5000 1340 0 0 0 0 0 NOK 000014005 0000 000 0600 0005 0000 0000 0000 000 000 000 0303030.78 029 0201 000 000 000 000 000 000 000 000 000 000 000 0123 02 00 01 000002 0.054 0042002000032 1021 0 000 0 0 0 0 0 0 0 SED DISC 000 SHOWDOPODOO OO OOO OO 1090 TO DOO OOO OOO 250 FOTOD O DO TODO ODGOVORSO ONDOO ZO OO OOO 100 DO 10000000000000000000 100000000000000000000000D DOOD OSONHO 15 0475 0 0 0 0 0 4 000 000 000 000 000 000 000 00 00 002 0017 56 000 200.000,00 000 000 000 000 0000 00 00 00 00 00 00 00 000 0000 000 000 000 000 noo O MOLDO 0 0 0 0 0 DEDONO DO ZOO to OD OD NO 1000000 20000 0000 0000 0000 000 100 000 OOOOO 0000 000 000 000 000 000 0000 0000 0000 0000 000 000 0000 0000 000 000 000 000 000 000 0000 000 000 OOOO OOC OTO FE 22 MORE 0295 016 01 OOST ON 0000000000000024 0.02000000000000000000000 0.3 2 072002050060004 000 000 000 000 000 000 000 000 000 000 000 000 0020101 001 005 000 000 000 002 000 0000 0000 boot 000000000000000002 0.75 000 0000 0000 0000 0000 0000 0000 000 000 0.00 0.00 0.00 0.00 0.00 0.00 031 030 000 000 000 000 000 000 000 000 000 000 0.804 00000000000000 009 Go On 000000000000000000000000004 0.00 0.00 0.200 ON 000 00610 CON 0033 6000 6000 600 0000 0000 0002 000 000 0000 0000 0000 0000 000 Y co 20 20 M Y OF HOE 1551 DEI 0 0.0 C O M S ni Stats 2018 1 0051 205 50 BODO ODOS Vit 2 500S LS255 000 GOH 8370 102 103 10305510322 05 100 ton 4 TE 55267502 102 103 104 105 1905 17261 O50S 534905501250 201206257257 2012 5000 50 100 20 TS 156 25 0 07 257 700000 10000 DO SONY 5 2009 S 100 POST V S 600 W CODE or CTI DES DEL CE 61,199 PE LOOD S 902 OCH CE SI DEL EU 206 WEN90 NEEL CICE 1 91 15 TO 6.79 m 579162224900 4775 44 1104595455000 5200 35001 460 62 54 55 534 54876 LE 66.28 609574 552 5.000 430 cm 45334310 CECH 205 1900 LES OG 15 3241 2904 190 Can 2004 070 35 50 306 600 I WET tot SODY DO O SET: FOTOS 000S WE 09 OCTWO OSS sit CT 5 SEES 10 NE VET ET SY EEEEEEEEEEE tot 20 tot we w Ditto EL boto ME AT THE TW 2015101 0000000000000000 ti DO MOTO MES 001 CE Foto 55 420 5 GET 2721267165 0 0 52 DOTMAM . Screen Shot 2020-11-20 at 1.36.13 PM Son 1001-2002 Tools Window Help Felpu View Go Edit Preview File
