Question

The plant manager of Jurassic Industries is considering the purchase of new automated assembly equipment. The new equipment will cost $3,437,500. The manager believes that the new investment will result in direct labor savings of $625,000 per year for 10 years.
a. What is the payback period on this project?
b. What is the net present value, assuming a 10% rate of return? Use the present value tables appearing in this chapter.
c. What else should the manager consider in the analysis?



$1.99
Sales2
Views105
Comments0
  • CreatedFebruary 04, 2014
  • Files Included
Post your question
5000