Union Bay Plastics is investigating the purchase of automated equipment

Union Bay
Plastics is investigating the purchase of automated equipment that would save
$100,000 each year in direct labor and inventory carrying costs. This
equipment costs $750,000 and is expected to have a 10-year useful lift with no
salvage value. The company’s required rate of return is 15% on all
equipment purchases. This equipment would provide intangible benefits
such as greater flexibility and higher-quality output that are difficult to
estimate and yet are quite significant.

Required:
(Ignore income taxes)

What dollar
value per year would the intangible benefits have to have in order to make the
equipment an acceptable investment?

Order your essay today and save 30% with the discount code: KIWI20