Tim not sure we should tay out $235,000 for that automated weiding machine, said Jim Alder, president of the Superior Equipment Compary. "That's a lot of money, and it would cost us $76.000 for software and installation, and another $38,400 per year just to maintain the thing. In addition, the manufacturer admits it would cost $39.000 mote at the end of three years to replace woin-out. partc." "I admit it s a lot of money." said Franci Rogers, the controller "But you know the furnoves problem we ve had with the weidng crew. This machine would replace six welders at a cost savings of $106,000 per year. And we would save another $6,700 per year in reduced material waste. When you figure that the automated welder would last for soc years, Im sure the retum would be greater than our 15% tequired rate of return "im stili not comvnced," countered Mr. Aider. "We can only get \$13,000 scrap value out of our old welding equatpment it we sell it now. and in max years the new machine will only be worth $22.000 for parts. But have your people work up the figures and we:lil talk about them at the esecutive commitice meeting tomorrow. Click here to view Exhitat 148-1 and Exhibit 148-2, to determine the appropriate discount factorts) using tables Required: 1 Compuite the annual net cost savings promised by the automated welding machine Za. Using the data trom Required 1 and other data from the problem, compule the aitomated welding machine s net present value. 2b. Would you recommend purchasing the aulomated welding machine? 3. Assume that management can identify several intangible benefits associated with the automated welding machine, including greater flexblity in shifting from one type of product to anothec, improved quality of output, and farter delivery as a result of reduced throughput sime. What minimum dollar value per year would management have to attach to these intangible beriefits in crder to make the new weiding machine an occeptable investment? Conplete this question toy entering your answers in the tabs below. Comphute the annsal net cost savings promised by the automated welding machine. EXAmT 1 AB-1 PresemtValewer51=(1++)21 Preseat Valme af as Amanity of 51 in Arreart, r11=(1+i)11 throughput timy in shifting from one type of product to another, improved quality of output, and faster delivery as a the new welding machine an acceptable investment? Complete this question by entering your answers in the tabs below. Compute the annual net cost savings promised by the automated welding machine. 2a. Using the data from Required 1 and other data from the problem, compute the automated welding machine's net preser 2b. Would you recommend purchasing the automated welding machine? 3. Assume that management can identify several intangible benefits associated with the automated welding machine, inclur greater flexibility in shifting from one type of product to another, improved quality of output, and faster delivery as a result o throughput time. What minimum dollar value per year would management have to attach to these intangible benefits in ord the new welding machine an acceptable investment? Complete this question by entering your answers in the tabs below. Using the data from Required 1 and other data from the problem, compute the automated welding machine's net present value. (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) throughput time. What minimum dollar value per year would management quality of output, and faster delivery as a the new welding machine an acceptable investment? Complete this question by entering your answers in the tabs below. Would you recommend purchasing the automated welding machine? 26. Would you recommend purchasing the automated welding machine? 3. Assume that management can identify several intangible benefits associated with the automated welding machine, including greater flexibility in shifting from one type of product to another, improved quality of output, and faster delivery as a result of re throughput time. What minimum dollar value per year would management have to attach to these intangible benefits in order to the new welding machine an acceptable investment? Complete this question by entering your answers in the tabs below. Assume that management can identify several intangible benefits associated with the automated welding machine, including greater flexibility in shifting from one type of product to another, improved quality of output, and faster delivery as a result of reduced throughput time. What minimum dollar value per year would magnagement have to attach to these intangible benefits in order to make the new welding machine an acceptable investment? (Round your final answer to the nearest whole doliar amount.)
