M manufacturing Ltd produces washing machines, dryers and dishwashers. Because of increasing competition, M Ltd...
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M manufacturing Ltd produces washing machines, dryers and dishwashers. Because of increasing competition, M Ltd is considering investing in a new automated manufacturing system. Since competition is most keen of dishwashers, the production process for this line has been selected for initial evaluation. The new automated system for the dishwasher line would replace an existing system purchased one year ago for $ million with an expected useful life of years and zero salvage value However, the current estimation is that the existing equipment can be used for more years ie for simplicity, depreciation expense will not be computed for the tenth year The straight line depreciation method is adopted for both the existing and the new automated systems. The new automated system would also have a useful life of years without salvage value.
The existing system is capable for producing dishwashers per year. Sales and production data all are cash using the existing system are provided by the Accounting Department.
tableSales per year unitsSelling price,$
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