The new model costs $150000 (delivered and installed) with an expected life of 5 years.The company expects that the new equipment will cost approximately $1000 more in utilities than whatit now pays.Thecompanywill alsospend $500 per month for anextended warranty.The new model is more complex and requires hiring someone to program it.The base salary of this new employee will be $36000 plus applicable payroll taxes and benefits which add up to be an additional 20% per year.However the company projects that the new equipment will be much faster andit would be able to fulfill $75000 worth ofextra orders per year.The managementbelieves that the cost ofcapital would be 10% and that after the equipment is fully depreciated the equipmentwill have 0 value and will be discarded.You have been hired todeterminethe following:Part 1
The new model costs $150000 (delivered and installed) with an expected life of 5
March 18th, 2019 admin
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