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please explain this step by step with formulas, as soon as posible Saxpn Product. incorporated, is investigating the purchase of a robot for use on
please explain this step by step with formulas, as soon as posible
Saxpn Product. incorporated, is investigating the purchase of a robot for use on the company's assembly line. Selected data relating to the robot are provided below In adaitson to the data above, engineering stubies suggest that use of the robot will result in a savings of 27,000 direct labor-hours each yeat. The labor rate is 518 per hour. Also, the smoother work flow made possible by the use of automation will allow the compary ta reduce the amount of inventofy on hand by $416,000. This inventory reduction will take place at the end of the first year of operation, the released funds will be avaliable for use elsewhere in the company. Savon Products has a 238 required rate of return. cick here to view Exbbib.12B-1 and Exhibit 12:-2, to determine the appropeiate discount factor(s) using tables Required: 1. Determine the annuol net cost savings if the robot 5 purchased. Do not inciude the $416.000 imventory reduction or the salvage value in this computation 1 2-a. Compute the net present value of the proposed investment in the robot. 2. B. Based on these data, would you recommend that the robot be purchased? 3. A Assume that the robot is purchased. However, due to unforeseen problems, sotware and installation costs were $91,000 more than estimsted and direct labor could only be reduced by 20,500 hours per yeat, rather than the original estimate of 27,000 houis. Assuming that ali other cost date is accurate, what would a postiudit suggest is the actual net present value of this investment? 3.b. Does it oppear that the company made a wise imestment? 4-a. Which of the foliowing are inang thle benefits associated with the new automated equipment? 4.6. Based on your analysis in Requirement 3 above, compute for the president the minimum dollar amount of annual cash infiow that woild be needed from the benelis in part 4(a) for the aiamated equipment to yield a 233 s rate of tetum. Conplete this question try entering vour answers in the tabs thelow. In additon to the data above engneering studies suggest that use of the robot wh result in a sovings of 27000 direct luber hours each yes. The fabor rate as 519 per hour. Also. the imoother work flow made possible by the use of austomabion will allaw the corspary to ieduce the amount of invertory on thand by $416000. This imventory reduction wal take place at the end of the frist vear of operatian; the seleased funds wit be available for use etsentiere in the company: 5axan products has a 234 required rate of retum: Cick here to view Eshion. 128.1 and Extsbe 12:-2, to determine the appropriste descount factorisf ising tables: Required: 1: Determine the annasi net cost savings if the robot in purchased. (Po nat include the 5416,000 invenoory reducbon or the sakvage value in tis compunation ) 2.2. Compute the net present value of the proposed investment in the robot 2.b, Based on these dita, would you recommend that the robot be purchased? 33 Ansume that the rothot is purchased. However, due to urforeseen peoblems, sotwware and indalason conts were 59 tooo more than estimaled and dirert iabor coud only be feduced by 20,500 hours pot yeas, father than the ongnal ectimate of 27.000 houn. 3.b. Does it apear that the company imsde a wise investnient? 4. Whicts of the following are antangbie benefits associased with the new automated equpment? 4.6. Barsed on your andysis in Pequarement 3 above. compuse far the presideat the minnsum dolis amount of annual cash anfow that would be needed from the benefts in pait 4s) for the automated equipement to yold a 2.3 . rate af retura Complete this quervilion try entering yuie snswers in the tabs below. amourt Assume that the robot in purchased. However, due to unforeseen problems, woftware and installation conts were 591.000 more than intimated and oirect labor could only be reduced by 20,500 hours per yeac, rather than the origingl eatimate of 27,000 hours. Assuming that all other cost data is accurate, what would a postaudit suggest is the actual net present value of this investment? (Enter-negative amount with a minus mign. flownd your flinal antwer to the neare.t whole dollar aenount) 2. compute the net present value of the proposed investment in the robot: 2-a gased on these data, would you recommend that the robot be purchased? 3.a Assurme that the robot is purchased. However, due to unforeseen problems, software and installation costs were $91.000 more than estmated and direct labor could only be reduced by 20.500 hours per year, rather than the original estimate ot 27000 hours. Assuming that all other cost data is accurate, what would a postaudit suggest is the actual net present value of this investment? 3.6. Boes it appear that the company made a wise investment? 4.3. Which of the following are intangible benefits associated with the new automated equipment? 4-b. Based on your analysts in Requirement 3 above, compute for the president the minimum dollar amount of annual cash inflow that would be needed from the benefits in part 4(a) for the automated equipment to yield a 23% rate of return. Complete this question by entering your answers in the tabs below. Based on your aratysis in flequirement 3 above, compote for the president the minimum dollar anount of annual cash inflow that would be needed from the benefits in part 4(a) for the automasted equipment to yleid a 23% rate of return. (Foind Your Kikal ankwer to the nenret whole dollar amount Step by Step Solution
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