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req 1,2,3a,4b Products, Inc., is investigating the purchase of a robot for use on the company's assembly line Selected data relat are provided below. st
req 1,2,3a,4b
Products, Inc., is investigating the purchase of a robot for use on the company's assembly line Selected data relat are provided below. st of the robot stallation and software mnual savings in inventory carrying costs anual increase in power and maintenance costs alvage value in 5 years seful life $ 1,850, eee 435,000 228, eee 48,000 $ 77, eee 5 years addition to the data above, engineering studies suggest that use of the robot will result in a savings of 29,000 direct labor-he ach year. The labor rate is $15 per hour. Also, the smoother work flow made possible by the use of automation will allow the ca reduce the amount of inventory on hand by $418,000. This inventory reduction will take place at the end of the first year of -peration, the released funds will be available for use elsewhere in the company. Saxon Products has a 17% required rate of retu Click here to view Exhibit 12B-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using tables Required: 1. Determine the annual net cost savings if the robot is purchased. (Do not include the $418,000 inventory reduction or the salvage value in this computation.) 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, software and installation costs were $93,000 more than estimated and direct labor could only be reduced by 22,000 hours per year, rather than the original estimate of 29,000 hours Assuming that all other cost data is accurate, what would a postaudit suggest is the actual net present value of this investment? 3-b. Does it appear that the company made a wise investment? 4-a. Which of the following are intangible 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 inflow that would be needed from the benefits in part 4(a) for the automated equipment to yield a 17% rate of return Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3A Req 3B Req 4A Reg 4B Based on your analysis in Requirement 3 above, cornpute 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 17% rate of return. (Round your final at the nearest whole Hallar amount Products, Inc., is investigating the purchase of a robot for use on the company's assembly line Selected data relat are provided below. st of the robot stallation and software mnual savings in inventory carrying costs anual increase in power and maintenance costs alvage value in 5 years seful life $ 1,850, eee 435,000 228, eee 48,000 $ 77, eee 5 years addition to the data above, engineering studies suggest that use of the robot will result in a savings of 29,000 direct labor-he ach year. The labor rate is $15 per hour. Also, the smoother work flow made possible by the use of automation will allow the ca reduce the amount of inventory on hand by $418,000. This inventory reduction will take place at the end of the first year of -peration, the released funds will be available for use elsewhere in the company. Saxon Products has a 17% required rate of retu Click here to view Exhibit 12B-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using tables Required: 1. Determine the annual net cost savings if the robot is purchased. (Do not include the $418,000 inventory reduction or the salvage value in this computation.) 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, software and installation costs were $93,000 more than estimated and direct labor could only be reduced by 22,000 hours per year, rather than the original estimate of 29,000 hours Assuming that all other cost data is accurate, what would a postaudit suggest is the actual net present value of this investment? 3-b. Does it appear that the company made a wise investment? 4-a. Which of the following are intangible 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 inflow that would be needed from the benefits in part 4(a) for the automated equipment to yield a 17% rate of return Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3A Req 3B Req 4A Reg 4B Based on your analysis in Requirement 3 above, cornpute 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 17% rate of return. (Round your final at the nearest whole Hallar amount
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