Aluminum Casting Company wants to buy a moulding machine that can be integrated into its computerised manufacturing process.It has received three bids,and related manufacturer's specifications,for the machine.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 $8000 of each other.The CEO just doesn't know which vendor to choose since all of the selection criteria are so close together.
Required:
What suggestions do you have for the CEO?
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The Answer of Aluminum Casting Company wants to buy a moulding machine that can be integrated into its computerised manufacturing process.It has received three bids,and related manufacturer's specifications,for the machine.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 $8000 of each other.The CEO just doesn't know which vendor to choose since all of the selection criteria are so close together.
Required:
What suggestions do you have for the CEO?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Aluminum Casting Company Wants to Buy a Moulding Machine That