"Tminot sure we should lay out $330,000 for that autonated welding machine? said Jim Alder, president of the Superior Equipment Company. Thute a lot of money, and it would cost us $90000 for software and installation, and another $55, 200 ner year iust to maintain the thing. Invadition, the marufacturef adrults it would cost $53,000 more at the end of three years to replace wornout parts: Tadma it's a lot of money." sald Fianci Rogess, the controllec. "But you know the turnover problem we'we had with the welding crew. This machine would replace six welders at a cost savings of $120,000 per yeac. And we would save another $8,300 per year in our 17 in required rate of icturn. "Tm still not convinced," countered Mr. Adec. "We can only get $20,000 scrap value out of our old welding equipment if we sell it now. and in six years the new machine will only be worth $36.000 for parts. But have your people work up the figures and we'il talk about Required: 2a. Using the dota from Required 1 and other data fiom the problem, compute the automated welding machine's net present value. 2b Would you recommend purchasing the automated welding machine? throughput time. What minimum dollar value per year would management have to attach to these intangible benefits in order to make the now welding machine an accepable investment