Minuteman Manufacturing Is Considering Upgrading a Piece of Equipment

Essay

Minuteman Manufacturing is considering upgrading a piece of equipment. If a certain upgrade helps reduce operating costs by $80 per hour of use, and the upgraded equipment will be used on average 7 hours per day, what is the expected annual savings of upgrading the equipment over its remaining life of 8 years? What other factors do you need to take into consideration to justify the decision to upgrade the equipment? Assume 360 working days in a year.