Question: Cash payback period, net present value analysis, and qualitative considerations The plant manager of Oriando Electronics Company is considering the purchase of new automated assembly
Cash payback period, net present value analysis, and qualitative considerations The plant manager of Oriando Electronics Company is considering the purchase of new automated assembly equigment. The new equipment wil cost $129,000. The manager belleves that the new investment will result in direct labor savinos of $43,000 per year for 10 years. Present Value of an Annuits of a. What is the payeack periad on this project? years b. What is the net present value, assuming a 10% rate of return? Use the table grovited above. Round to the nearest whole dollar. Net present value 9 c. What else should the manager consider in the analysis
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