The manager of a automotic division wants to replace excisting robtics used at the costs 350,000 a month for the next 5ys. The excisting robtics at 400,000 in today's dollars. An additional 220,000 for investment will be required for new equipment. The manager estiminates the robtics can be sold at 70,000. Show how the manager can apply the marginal costs -benefit analysis techniques to determine the outcome
The manager of a automotic division wants to replace excisting robtics used at the costs 350,000 a month for the next 5ys. The excisting robtics at 400,000 in today's dollars. An additional 220,000 for investment will be required for new equipment. The manager estiminates the robtics can be sold at 70,000. Show how the manager can apply the marginal costs -benefit analysis techniques to determine the outcome
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The manager of a automotic division wants to replace excisting robtics used at the costs 350,000 a month for the next 5ys. The excisting robtics at 400,000 in today's dollars. An additional 220,000 for investment will be required for new equipment. The manager estiminates the robtics can be sold at 70,000.
Show how the manager can apply the marginal costs -benefit analysis techniques to determine the outcome.
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Marginal cost benefit analysis is used to evaluate the project. Instead of considering total cost and benefit like conventional system in this approach only marginal cost and benefit analyzed.
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