Avier is an IE at Lobos Manufacturing. He has been studying process line G to determine if an automated system would be preferred to the existing labor- intensive system. If Lobos wants to earn at least 20% and uses a 15-year planning horizon, which alterna- tive is preferred? Contributed by Paul R. McCright, University of South Florida Labor Intensive Automated paiwoll $0 $110,000 Initial cost 10 18,500 Installation cost 0.IE 2,000 4,800 First-year O&M 450 950 Annual increase 72,000 47,500 First-year labor costs 5% Annual increase 5% 2,500 20,000 Salvage value

Financial performance is measured in many ways. requirements 1. explain the difference between lag and lead indicators. 2. the following is a list of financial measures. indicate whether each is a lag or lead indicator: a. income statement shows net income of $100,000 b. listing of next week's orders of $50,000 c. trend showing that average hits on the redesigned website are increasing at 5% per week d. price sheet from vendor reflecting that cost per pound of sugar for the next month is $2 e. contract signed last month with large retail store that guarantees a minimum shelf space for grandpa's overloaded chocolate cookies for the next year