23 Jul HOW MUCH INVESTMENT CAN BE JUSTIFIED ON THIS EQUIPMENT?
An ASRS system being considered for a plant will replace four (4) material handlers. Currently each Show more An ASRS system being considered for a plant will replace four (4) material handlers. Currently each of these material handlers is paid at the rate of $15000/year. The salary is expected to increase $2000 every year over the net 5 years. The taxes and maintenance charges on this system is estimated to be about 8% per year. If money is worth 10% after taxes How much investment can be justified on this equipment? Assume SOYD depreciation method is used. A salvage value of $10000 is expected at the end of 5 years. Income tax rate =34%. Show less
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