Please help with 36

13-36 In evaluating projects, LeadTech's engineers use a rate of 15%. One year ago a robotic transfer machine was installed at a cost of $38,000. At the time, a 10-year life was estimated, but the machine has had a downtime rate of 28%, which is unacceptably high. A $12,000 upgrade should fix the problem, or a labor-intensive process costing $3500 in direct labor per year can be substituted. The plant estimates indirect plant expenses at 60% of direct labor, and it allocates front office overhead at 40% of plant expenses (direct and indirect). The robot has a value in other uses of $15,000. What is the difference between the EUACs for upgrading and switching to the labor-intensive process? 13. Leary's company ships fine wool garments she 7 M ary O' rom County Cork, Ireland. Five years ago ha haiased some new automated packing equipment g a first cost of $125,000. The annual costs for operating vin as ing, maintenance, and insurance, as we 10-y data for each year of the equipment's ear useful life are as follows