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Investigating the purchase of atm machines

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Reference no: EM13330722

Union bay plastics is investigating the purchase of atm machines., that would save 100,00 each yr in direct labor and inventory carry costs. this atm equipment costs 750,000 and is expecting to have a 10yr useful lift with no salvage valve. the company require rate of return is 15 percent on all equpement purchase. this atm machines would provide intangle benfits such as greater flexable and high quality output that are difficult to estimate.

Question i need to answer what dollar valve per yr would the intangle benfit have to have order to make the equipment a sound investment

Reference no: EM13330722

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