Savings obtained by elevating present equipment-labor cost

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Reference no: EM13775220

The management of a private hospital is considering the installation of an automatic telephone switchboard, which would replace a manual switchboard and eliminate the attendant operator's position the class of service provided by the new equipment, is estimated to be at least equal to the present method of operation. To provide telephone service, five operators currently work three shifts per day, 365 days per year. Each operator earns $25,000 per year. Company-paid benefits and overhead are 25% of wages. Money costs 8% after income taxes. Combined federal and state income taxes are 40% Annual property taxes and maintained are 2 1/2 and 4% of investment, respectively. Depreciation is 15 year straight line. Disregarding inflation, how large an investment in the new equipment can be economically justified by savings obtained by elevating the present equipment and labor cost? The existing equipment has zero slaves be value. Show all your work.

Reference no: EM13775220

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Savings obtained by elevating present equipment-labor cost : The management of a private hospital is considering the installation of an automatic telephone switchboard, which would replace a manual switchboard and eliminate the attendant operator's position the class of service provided by the new equipment, i..

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