"I'm not sure we should tay out $280,000 for that automated welding machine," said Jim Alder. president of the Superior Equipment Company. That's a lot of money, and it would cost us $80.000 for software and installation, and another $43,200 per year just to maintain the thing. In addition, the manufacturer admits it would cost $43,000 more ot the end of three years to replace worn-out parts 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 oto cost savings of $110,000 per year. And we would save another $7,100 per year in 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 15% required rate of return T'm still not convinced, countered Mc Alder. "We can only get $15,000 scrap value out of our old welding equipment if we sell it now. and in six years the new machine will only be worth $26.000 for ports. 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 128.1 and Exhibit 12B2. to determine the appropriate discount factor(a) using tables. Requtred: 1. Compute the annual net cost savings promised by the automated welding machine. 2. Using the data from (1) above and other data from the problem. compute the automated welding machine's net present value 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. Whet minimum dolor velue per year would management have to attach to these intangible benefits in order to make the new welding machine on acceptable investment? Complete this question by entering your answers in the tabs below. Re: Reg 2 Reg 20 Rega Compute the annum net cost savings promised by the automated welding machine. Req2A > mework Tm not sure we should lay out $280,000 for thot automated welding machine." said Jim Alder, president of the Superior Equipment Company. "That's a lot of money, and it would cost us $80,000 for software and installation, and another $43.200 per year just to maintain the thing. In addition, the manufacturer admits it would cost $43,000 more at the end of three years to replace worn-out parts admit it's a lot of money. soid 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 $110,000 per year. And we would save another $7,100 per year in 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 15% required rate of return "I'm still not convinced" countered Mr. Alder. "We can only get $15.000 scrap volue out of our old welding equipment if we sell it now. and in six years the new machine will only be worth $25,000 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 128.1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables Requtred Compute the annual net cost savings promised by the automated welding machine. 20. Using the data from (1) above and other data from the problem, compute the automated welding machine's net present value 3. Assume that management can identity several intangible benefits associated with the automated welding machine, including greater fexibility in shifting from one type of product to another, improved quality of output, and foster delivery as a result of reduced throughput time. What minimum doller value per year would management have to attach to these intangible benefits in order to make the new welding machine an acceptable investment? ences Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Reg 20 RAQ Using the data from (1) above and other data from the problem, compute the automated welding machine's net present we (inter negative amount with a minus sign. Round your finalawwer to the nearest whole dollar amount.) I'm not sure we should lay out $280,000 for that automated welding machine, said Jim Alder president of the Superior Equipment Company "That's a lot of money, and it would cost us $80,000 for software and installation, and another 543,200 per year just to maintain the thing. In addition, the manufacturer admits it would cost $43,000 more at the end of three years to replace worn-out ports. "ladmit it's a lot of money said Franci Rogers, the controller "But you know the turnover problem we've hod with the welding crew. This machine would replace six welders at a cost savings of $110.000 per year. And we would save another 57:100 per year in reduced material waste When you figure that the automated welder would lost for six years, I'm sure the return would be greater than our 15% required rate of return. Tm soll not convinced, countered Me. Alder. We can only get $15,000 s Crop value out of our old welding equipment if we sell it now, and in six years the new machine will only be worth $25,000 for ports. 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 128-1 and Exhibis 128.2. to determine the appropriate discount factors) using tables. Required: Compute the annual net cost savings promised by the automated welding machine. 2. Using the data from (t) above and other data 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 identity 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 foster delivery as a result of reduced throughput time. What minimum doller value per year would management have to attach to these intangible benefits in order to make the new welding machine an acceptable investment? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 20 Reg 3 Would you recommend purchasing the automated welding machine ework Required 0 Im not sure we should lay out $230,000 for that automated welding machine." said Jim Alder, president of the Superior Equipment Company. "That's a lot of money and it would cost us $80.000 for software and installation, and another $43.200 per year just to maintain the thing. In addition, the manufacturer admits it would cost $43.000 more at the end of three years to replace worn-out parts "ladmit it's a lot of money" saic Franc Rogers, the controller, "But you know the turnover problem we've hod with the welding crew. This machine would replace six welders at a cost savings of $110,000 per year . And we would save another $7,100 per year in 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 15% required rate of return. I'm still not convinced, countered Mc Alder. "We can only get $15,000 scrap value out of our old welding equipment if we sell it now, and in six years the new machine will only be worth $26,000 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 123.1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables. Required: 1 Compute the annual net cost savings promised by the automated welding machine, 20. Using the data from (t) above and other data 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 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? ECCE Complete this question by entering your answers in the tabs below. Reg 1 Rog 2 Reg 28 Req3 Assume that management can identify several intangible benefits associated with the automated welding machine, including greater exibility 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? (Round your final answer to the nearest whole dollar