A facility is evaluating replacement of some of the components. Components that need to be replaced have a cost of $175,000. Annual maintenance on the components is $15,000 and increases $1,800 per year. In addition to the annual maintenance, at 7 years after the components are installed, there is a maintenance cost of $45,000. The components have a life span of 12 years and a salvage value of $58,000. Assume an interest rate of 9%. Determine the net present worth of the components.

Required: 1-a. the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. calculate the increase or decrease in net operating income. 1-b. should the advertising budget be increased ? yes no hintsreferencesebook & resources hint #1 check my work 8.value: 1.00 pointsrequired information 2-a. refer to the original data. management is considering using higher-quality components that would increase the variable expense by $2 per unit. the marketing manager believes that the higher-quality product would increase sales by 10% per month. calculate the change in total contribution margin. 2-b. should the higher-quality components be used? yes no