Business, 20.08.2019 19:30 bullockarwen

In evaluating projects, leadtech’s engineers use a rate of 15%. one year ago a robotic transfer machine was installed at a cost of $38,000. at the time, a 10-year life was estimated, but the machine has had a downtime rate of 28%, which is unacceptably high. a $12,000 upgrade should fix the problem, or a labor-intensive process costing $3500 in direct labor per year can be substituted. the plant estimates indirect plant expenses at 60% of direct labor, and it allocates front office overhead at 40% of plant expenses (direct and indirect). the robot has a value in other uses of $15,000. what is the difference between the euacs for upgrading and switching to the labor-intensive process?

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In evaluating projects, leadtech’s engineers use a rate of 15%. one year ago a robotic transfer mach...

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