The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $$290,000.$ The manager

believes that the new investment will result in direct labor savings of $$58,000$ per year for $10$ years.

a$.$ What is the payback period on this project?

$$ years

b$.$ What is the net present value, assuming a $12\%$ rate of return? Use the table provided above. Round to the nearest whole dollar.

Net present value

c$.$ What else should the manager consider in the analysis?

Depreciation.

Taxes and maintenance costs.

$($Depreciation and Taxes.

Maintenance costs.

s remaining.

Taxes.