The Johnson Company pays $200 a month to a trucker to haul wastepaper and cardboard to the city…


The Johnson Association pays $200 a month to a trucker to haul wastepaper and cardboard to the city dump. The embodied could be recycled if the association were to buy a $6000 hydraulic instigate bailer and bestow $3000 a year for drudge to produce-an-effect the bailer. The bailer has an estimated serviceable society of 30 years and no salvage esteem. Strapping embodied would require $200 per year for the estimated 500 bales a year that would be producec A wastepaper association will pick up the bales at th settle and pay Johnson $2.30 per bale for them. USI an annual specie run separation in started this completion

(a) If profit is 8%, is it restricted to induct ant produce-an-effect the bailer?

 (b) Would you commend that the bailer be inducted?