(Solution Download) The plant manager of O Brien Equipment Company is considering th

The plant manager of O?Brien Equipment Company is considering the purchase of a new robotic assembly plant. The new robotic line will cost $1,250,000. The manager believes that the new investment will result in direct labor savings of $250,000 per year for 10 years.
a. What is the payback period on this project?
b. What is the net present value, assuming a 10% rate of return?
c. What else should the manager consider in the analysis?


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