Prepare a capital investment analysis for a robot-guided

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Reference no: EM132161584

Bramer Corporation's controller, Mara, was asked to prepare a capital investment analysis for a robot-guided aluminum window machine. This machine would automate the entire window-casing manufacturing line.

Mara has just returned from an international seminar on qualitative inputs into the capital investment decision and the value chain. She is eager to incorporate these new ideas into the analysis. In addition to the normal net present value analysis (which produced a significant negative result), Mara factored in figures for customer satisfaction, scrap reduction, reduced inventory needs, and reputation for quality.

With the additional information included, the analysis produced a positive result for the investment. Do you think these other factors should be included in Mara's analysis? Elaborate on why or why not.

Directions:

- Write an essay that addresses the assignment's guide questions, do not address the questions using a question and answer format.

- Embed academic material concepts, principles and theories (require supporting citations) along with at least two scholarly, peer-reviewed journal article unless the assignment calls for more.

- Use academic writing standards and APA style guidelines.

Verified Expert

The assignment required the determination of whether qualitative data should be used in the calculation of the net present value (NPV) to be applied in investment capital decision. The NPV values is a method that uses only quantitative data such as projected cash flow statements in its calculation. therefore, the decision by Mara to include it in the calculation was unrealistic. Also, the work required no calculations to be made, therefore, I have done it in a word document.

Reference no: EM132161584

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