Question: please answer this Help Save & Exit This machine would replace six welders at a cost savings of $113,000 per year. And we would save

please answer this

please answer this Help Save & Exit This machine would replace six

Help Save & Exit This machine would replace six welders at a cost savings of $113,000 per year. And we would save another $7,400 per year in reduced required rate of return." material waste. When you figure that the automated welder would last for six years, I'm sure the return would be greater than our 19% "I'm still not convinced," countered Mr. Alder. "We can only get $16,500 scrap value out of our old welding equipment if we sell it now, and in six years the new machine will only be worth $29,000 for parts. But have your people work up the figures and we'll talk about them at the executive committee meeting tomorrow." 01:29:20 Click here to view Exhibit 78-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the annual net cost savings promised by the automated welding machine. 2a. Using the data from (1) above and other data from the problem, compute the automated welding machine's net present value. 2b. Would you recommend purchasing the automated welding machine? 3. Assume that management can identify several intangible benefits associated with the automated welding machine, including greater flexibility in shifting from one type of product to another, improved quality of output, and faster delivery as a result of reduced throughput time. What minimum dollar value per year would management have to attach to these intangible benefits in order to make the new welding machine an acceptable investment? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B Reg 3 Compute the annual net cost savings promised by the automated welding machine. Annual net cost savings

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