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(Solved): Marginal cost-benefit analysis and the goal of the firmMonsanto Corporation is consideri ...



Marginal? cost-benefit analysis and the goal of the firm???Monsanto Corporation is considering the replacement of some of its older and outdated? carpet-manufacturing equipment. Its objective is to improve the efficiency of operations in terms of both speed and reduction in the number of defects. The? company's finance department has compiled pertinent data to conduct a marginal? cost-benefit analysis for the proposed equipment replacement. The cash outlay for new equipment would be $ 557 comma 300$557,300. The net salvage value of the old equipment is $ 304 comma 000$304,000. The total benefits over the life of the new equipment? (measured in? today's dollars) would be ?$836 comma 000836,000. The sum of benefits from the remaining life of the old equipment? (measured in? today's dollars) would be ?$337 comma 000337,000. a.??What is the marginal benefit of the proposed equipment? replacement? b.??What is the marginal cost of the proposed equipment? replacement? c.??What is the net benefit of the proposed equipment? replacement? d.??What would you recommend the firm? do? Why?



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