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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?

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