Fabrication committee to evaluate proposals for modification manufacturing system. Two proposals have been finalized and accepted for consideration with both proposals have a same capital investment $30,300. Both proposals able to give net saving and return to the company for 9 years because of less non-defective unit and the increase of productivity as shown in Figure la and 1b. Analyze which proposal have the best return of investment for 9 years.

Fabrication committee to evaluate proposals for modification manufacturing system. Two proposals have been finalized and accepted for consideration with both proposals have a same capital investment $30,300. Both proposals able to give net saving and return to the company for 9 years because of less non-defective unit and the increase of productivity as shown in Figure la and 1b. Analyze which proposal have the best return of investment for 9 years.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 7E

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