A high-tech material handling system was offered by a supplier to a large automobile manufacturer. The installation cost of the system is worth Php 1,000,300,000. This system will save Php 214,000,000 per year in manual labor, and it will incur Php 93,000,000 in annual operating and maintenance expenditures. The salvage value at the end of the system’s 10-year life is negligible. If the company’s hurdle rate (MARR) is 10% per year, should the system be recommended for implementation? determine the following: a. Enumerate all the cash inflows in the problem. Classify the cash inflow if it is in its present value, future value, or annual value. b. Enumerate all the cash outflows in the problem. Classify the cash outflow if it is in its present value, future value, or annual value.
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A high-tech material handling system was offered by a supplier to a large automobile manufacturer. The installation cost of the system is worth Php 1,000,300,000. This system will save Php 214,000,000 per year in manual labor, and it will incur Php 93,000,000 in annual operating and maintenance expenditures. The salvage value at the end of the system’s 10-year life is negligible. If the company’s hurdle rate (MARR) is 10% per year, should the system be recommended for implementation?
determine the following:
a. Enumerate all the cash inflows in the problem. Classify the
b. Enumerate all the
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