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Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 398 Weeks Ago, 5 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Hiring physically challenged people to clean bowling shoes will save BowlingBackOffice, Inc (BBO) $3,000 per year for the next 5 years but will require a $10,000 investment to retrofit the work area and review operating procedures to ensure that the work can be safely performed by the new employees. However, BBO could buy a “Bowling Shoe Wash” from the WashItUp Corporation. WashItUp’s device is a bulk shoe wash where used and presumed soiled shoes are loaded on a conveyor belt which moves them through a machine coming out clean and sanitized. The total cost of the shoe wash would be $25,000 with net cash savings of $7,400 per year for 5 years at which point the machine would likely be scrap. BBO has a hurdle rate of 12%. What should BBO do from a financial perspective? And why?
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