Case Study - Capital-Budgeting Analysis of Automated-Material-Handling System
Required:
1. Prepare a net-present-value analysis of the purchase and installation of the material-handling system using the revised estimates obtained by Leland Forrest. (For this problem, ignore the half-year convention. Assume annual straight-line depreciation of $562,500, which is $4,500,000 / 8.)
2. Explain how Leland Forrest, a management accountant, should evaluate Bill Rolland's directives to repress the revised analysis. Take into consideration the specific ethical standards of competence, confidentiality, integrity, and objectivity.
3. Identify some steps Leland Forrest could take to resolve this situation.