Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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.

image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

6 > 3 OR 7 > 5, is it true or false

Answered: 1 week ago