“Marginal cost-benefit analysis and the goal of the firm. Ken Allen,capital budgeting analyst for Bally Gear, Inc., has been asked to evaluate a…
“Marginal cost-benefit analysis and the goal of the firm. Ken Allen,capital budgeting analyst for Bally Gear, Inc., has been asked to evaluate a proposal. The manager of the automotive division believes that replacing the robotics used on the heavy truck gear line will produce total benefits of $560,000 (in today’s dollars) over the next 5 years. The existing robotics would produce benefits of $400,000 (also […]