Marginal cost-benefit analysis and the goal of the firm ken allen, capital budgeting analyst for bally gears, inc., has been asked to evaluate a proposal. the manager of the automotive division believes that replacing the robotics used on the heavy truck gear line will produce total benefits of $507 comma 000 (in today's dollars) over the next 5 years. the existing robotics would produce benefits of $376 comma 000 (also in today's dollars) over that same time period. an initial cash investment of $ 202 comma 800 would be required to install the new equipment. the manager estimates that the existing robotics can be sold for $ 63 comma 000. show how ken will apply marginal cost-benefit analysis techniques to determine the following: a. the marginal benefits of the proposed new robotics. b. the marginal cost of the proposed new robotics. c. the net benefit of the proposed new robotics. d. what should ken recommend that the company do? why? e. what factors besides the costs and benefits should be considered before the final decision is made?

replacing the robotics will provide a differential income for 8,800 dollars.

Explanation:

507,000 (in today dollars over the next 5 years)

this will be the present value fo the cash inflow

the cash investment will be for 202,800

                New                Old         Differential

purchase  (202,800)                    202,800

sale              63,000                      (63,000)

benefit             507,000   376,000     (131,000)

Total             367,200   376,000        8,800

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi