What other alternatives can she take into consideration

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Reference no: EM131886369

Due to the consistent increase in demand, the CEO of Company ABC decided to increase manufacturing capacity of the company by adding a new machine to the plant located in Jakarta. Price of the machine is $180,000. This machine also requires additional site preparation for $15,000. The company expects to use the new machine for 5 years and increase annual revenues by $75,000. At the end of 5 years, it is estimated that the salvage value of the machine will be $60,000. Should the CEO of the company ABC be persistent in purchasing this new machine? If not, what other alternatives can she take into consideration?

Reference no: EM131886369

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