Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem: New machine costs : $300,000 software and installation: $84000 maintence per year: 48000 replacement of parts in 3 years: $ 47000 would save :
Problem:
New machine costs : $300,000
software and installation: $84000
maintence per year: 48000
replacement of parts in 3 years: $ 47000
would save : $114,000 + $7500 per year
old scraps of old machine: $17000
salvage value in year six $30,000
rate of return: 17%
Question:
Whats the minimum dollar value that management would have to have attach to intangible benefits to not reject this new machine?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started