What would be the maximum to spend on the revision

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Reference no: EM131303500

At Tech Corp., Rob Hendricks is studying the vector valve department and finds that a new tool could be designed that would save $2,600 in material and $5,000 in labor per year. The current process will be used for five more years. If Tech corp. normally desires a 15% ROI on its investments, what is the maximum that can be spent on the revised tooling and equipment to improve this process? What if Rob did not consider the time value of money? What would be the maximum to spend on the revision?

Reference no: EM131303500

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