Business, 16.11.2019 02:31 isabel2007riverton
Dan jacobs, production manager for greenlife, invested in computer-controlled production machinery last year. he purchased the machinery from superior design at a cost of $3,000,000. a representative from superior design has recently contacted dan because the company has designed an even more efficient piece of machinery. the new design would double the production output of the year-old machinery but would cost greenlife another $4,500,000. jacobs is afraid to bring this new equipment to the company president's attention because he convinced the president to invest $3,000,000 in the machinery last year.
explain what is relevant and irrelevant to jacobs' dilemma. what should he do? identify each of the following as relevant or irrelevant to dan's decision:
a. greenlife purchased the old machinery for $3,000,000.
b. the new machinery would cost greenlife $4,500,000
c. the new machinery would double the production output of the old machiner
Answers: 3
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