The Rustic Welt Company is proposing to replace its old welt-making machinery with more modern equipment. The new equipment cost $9 million (the existing equipment has zero salvage value). The attraction of the new machinery is that it is expected to cut manufacturing costs from their current level of $8 a welt to $4. However, as the following table shows, there is some uncertainty both about future sales and about the performance of the new machinery:
BA (Hons) in HRM Strategy & Practise
Economic and Social Policy Lecture 11: The Housing Sector ? Overview References: Department of Housing, Planning, Community and Local Government (2016) Action Plan for
