Marginal cost-benefit analysis and the goal of the firm Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked evaluate a proposal. The manager of the automotive division believes that replacing the robotics used on the heavy truck gear line w produce total benefits of $560,000 (in today's dollars) over the next 5 years. The existing robotics would produce benefits of $400,000 (also in today's dollars) over that same time period. An initial cash investment of $220,000 would be required to install the new equipment. The manager estimates that the existing robotics can be sold for $70,000. Show how Ken will apply marginal cost-benen analysis techniques to determine the following: a. The marginal benefits of the proposed new robotics. b. The marginal cost of the proposed new robotics. c. The net benefit of the proposed new robotics. d. What should Ken recommend that the company do? Why? e. What factors besides the costs and benefits should be considered before the final decision is made? a. The marginal (added) benefits of the proposed new robotics is $J(Round to the nearest dollar.) b. The marginal (added) cost of the proposed new robotics is SL (Round to the nearest dollar.) c. The net benefit of the proposed new robotics is $ ). (Round to the nearest dollar.) d. Ken Allen should recommend the company (Select the best answer Ediow.) to not replace the existing robotics because the net profit is positive. to replace the existing robotics because the net profit is positive. e. Other factors that should be considered before the final decision is made are: (Choose all that apply.) A. Make sure sunk costs are included B. What will be the energy consumption of the new robotics, c. Whether there will be additional training necessary with the new robotics. Click to select your answer(s). CH 15 X 4 MacBook Air