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Cast Iron Stove Company wants to buy a molding machine that can be integrated into its computerized ...

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Cast Iron Stove Company wants to buy a molding machine that can be integrated into its computerized ...

Cast Iron Stove Company wants to buy a molding machine that can be integrated into its computerized manufacturing process. It has received three bids for the machine and related manufacturer's specifications. The bids range from $3,500,000 to $3,550,000. The estimated annual savings of the machines range from $260,000 to $270,000. The payback periods are almost identical and the net present values are all within $8,000 of each other. The president just doesn't know what to do about which vendor to choose since all of the selection criteria are so close together.

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What suggestions do you have for the president with regard to specific qualitative factors that could be considered?

Textbook

Cost Accounting: A Managerial Emphasis, Canadian Edition

Edition: 7^th

Authors: Horngren, Datar, Rajan, Beaubien

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ruskin Author

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6 years ago

Thanks

mkyoungs

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Thank you, thank you, thank you!

SlimyPencil

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

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