Question: looking for a present value. this includes initial cost of machine plus the annual maintenance costs. both compared to the cost of injuries The cost

looking for a present value. this includes initial cost of machine plus the annual maintenance costs. both compared to the cost of injuries

The cost of upgrading to the mechanized palletizing process is $500,000. Its Maintenance costs are 500$ per year, for a life of the machine of 20 years. Minimum acceptable rate of return or MARR= 12% Sturdy has the cash on-hand to pay for the upgrade. The cost of one back injury is $20,000. In 2013, the Akron plant experienced 10 back injuries while the St. Louis plant had 5 back injuries. Using the tools (quantitative and qualitative), what advice would you give the Sturdy Management Team? Defend your answer by showing/explaining your work.

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