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Marginal cost-benefit analysis and the goal of the firm Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked to evaluate a proposal.
Marginal cost-benefit analysis and the goal of the firm Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked to evaluate a proposal. The the heavy truck gear line will produce total benefits $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 mar of $560,000 (in today's dollars) over the next 5 years. The existing robotics would produce benefits of $400,000 a. The marginal benefits of the proposed new robotics. b. The marginal cost of the proposed new robotics. c. The net 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? of the proposed new robotics. a. The marginal (added) benefits of the proposed new robotics is $160000 (Round to the nearest doillar.) b. The marginal (added) cost of the proposed new robotics is $150000, (Round to the nearest dollar.) c. The net benefit of the proposed new robotics is $ 10000 (Round to the nearest dollar.) d. Ken Allen should recommend the company (Select the best answer below.) O to not replace the existing robotics because the net profit is 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. B. C. Whether there will be Make sure sunk costs are included. What will be the energy training D. Whether even better robotics may be available in a short while
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