PLEASE HELP ON THIS QUESTION!!

$$I$$m not sure we should lay out $$305,000$ for that automated welding machine,$$ said Jim Alder, president of the Superior Equipment Company. $$That$$s a lot of money, and it would cost us $$85,000$ for software and installation, and another $$49,200$ per year just to maintain the thing. In addition, the manufacturer admits it would cost $$48,000$ more at the end of three years to replace worn$-$out parts.$$

$$I admit it$$s a lot of money,$$ said Franci Rogers, the controller. $$But you know the turnover problem we$$ve had with the welding crew. This machine would replace six welders at a cost savings of $$115,000$ per year. And we would save another $$7,600$ per year in reduced material waste. When you figure that the automated welder would last for six years, I$$m sure the return would be greater than our $18\%$ required rate of return.$$

$$I$$m still not convinced,$$ countered Mr$.$ Alder. $$We can only get $$17,500$ scrap value out of our old welding equipment if we sell it now, and in six years the new machine will only be worth $$31,000$ for parts. But have your people work up the figures and we$$ll talk about them at the executive committee meeting tomorrow.$$