Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Must show work to get points! An ASRS system being considered for a plant will r

ID: 1100743 • Letter: M

Question

Must show work to get points!

An ASRS system being considered for a plant will replace four (4) material handlers. Currently each of these material handlers is paid at the rate of $15,000/year. The salary is expected to increase $2,000 every year over the net 5 years. The taxes and maintenance charges on this system is estimated to be about 8% per year. If money is worth 10% after taxes, how much investment can be justified on this equipment? Assume SOYD depreciation method is used. A salvage value of $10,000 is expected at the end of 5 years. Income tax rate =34%.

Explanation / Answer

please rate me. i want points for an urgent purpose.