Refer back to E23-11 to address the following.

Instructions

Prepare a memo to Megan Comer, your supervisor. Show your calculations from E23-11, parts (a) and (b). In one or two paragraphs, discuss important nonfinancial considerations. Make any assumptions you believe to be necessary. Make a recommendation, based on your analysis.

Data from E23-11

Alameda Service Center just purchased an automobile hoist for $15,000. The hoist has a 5-year life and an estimated salvage value of $1,080. Installation costs were $2,900, and freight charges were $820. Alameda uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Alameda estimates that the new hoist will enable his mechanics to replace four extra mufflers per week. Each muffler sells for $65 installed. The cost of a muffler is $35, and the labor cost to install a muffler is $10.