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nments ACG 2071 CRN 11009 Intro to Managerial Accounting HW 13 2.50 points Tm not sure we should lay out$345.000 for that automated welding machine,'
nments ACG 2071 CRN 11009 Intro to Managerial Accounting HW 13 2.50 points Tm not sure we should lay out$345.000 for that automated welding machine,' said Jim president of the Superior Equipment Company. "That's a lot of money, and it would cost us $93,000 for software and installation, and another $4,900 every month just to maintain the thing. In addition, the manufacturer admits would cost$56,000 more at the end of three years to replace worn-out parts. "I admit it's a lot of said Franci the controller But you know problem year. had with the welding arew. machine would replace welders at a cost savings of per And we would save another per year in reduced material When you figure that the automated welder would for six years, l'm sure the be greater than our 14% required rate of return." "Im still not convinced, countered Mr. Alder. We can only get $21,500 scrap value out of our welding equipment if we sell it now, and in six years the new machine wil only be worth But have your people work up the figures and we'll talk about them at the executive committee meeting Click here to view Exhibit 13B-1 and E 13B-2, to determine the appropriate discount factor(s) using Required: M. Compute the annual net cost savings promised by the automated welding machine Reduction in labor costs Reduction in material waste Less increased maintenance costs Annual net cost savings MacBook Pro
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