Saxon Products, Inc, is investigating the purchase of a robot for tise on the comipany's assembly line. Selected ciata relating to the robot are provided below: Engineering studies suggest that use of the robot will result in a savings of 22000 direct labor hours each year. The labor tate is $16 per hout. Also, the smoother work flow made possible by the use of automation will allow the company to reduce the amount of Irventory on hand by, $411000. This inventory reduction wili take place at the end of the first year of operation; the teleased funds will be avallable for use elsewhere in the company. Sswon Products has a 205 requlted rate of refuin. Required; 1. Detemine the annusi net cost kivings if the robot is purchased. (Do not include the $41,000 inventory reduction or the saivinge Vake in this computation) 2a. Compute the net prewent vilue of the proposed investment in the robot. 2.b. Bosed on these data, would you recommend that the robol be purchased? 3.1. Assume litat the robot is nurchased. However, due to unforeseen problems, software and installation costs were 586.000 more Thin exhimated and direct labor could only be reduced by 18.000 hours per yeat, rather than the original estimate or 22.000 hours. Assurfing that all other cost dala is accurate, what woukd a postatist sugpest hi the actual net present value of this livestment? d. Which oppesir that the coimpany made a wise investment? 4. 6. Baved on so wolumig are intang ble benefits associafed with the new automated equipment? Would be needed from the the requiement above, campute for the president the mintemum dollar amount of annust cash inflow that 3-a. Assume that the robot is purchased. However, due to unforeseen problems, software and installation costs were $86,000 more than estimated and direct labor could only be reduced by 18.000 hours per year, rather than the original estimate of 22,000 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? 4.3. Which of the following are intangible benefits associated with the new automated equipment? 4.b. 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 20% rate of return. Complete this question by entering your answers in the tabs below. Assume that the robot is purchased. However, due to unforeseen problems, software and installation costs were $86,000 more than estimated and direct labor could only be reduced by 18,000 hours per year, rather than the original estimate of this investment? (Enter 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 sign. Round your final answer to the nearest whole dollar amount.) 3-a. Assume that the robot is purchased. However, due to unforeseen problems, software and installation costs were $86,000 more than estimated and direct labor could only be reduced by 18,000 hours per year, rather than the original estimate of 22,000 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.b. Based on your analysis in Requirement 3 above, compute for the president the minimum dollar amount of annuai cash inflow that would be needed from the benefits in part 4() for the automated equipment to yield a 20% rate of return. Complete this question by entering your answers in the tabs below. Which of the following are intangible benefits assodated with the new automated equipment? (Select which of the following statements (is) are true by selecting an " X ".) 46. Based on your analysis in Requirement 3 above, compute for the president the minimum dollar amount of annual cash inflow the would be needed from the benefits in part 4(a) for the automated equipment to yleld a 20% rate of return. Complete this question by entering your answers in the tabs below. Bosed 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 20% rate of return. (Round your Tinal answer to the nearest whole dollar amount.)
