The Toro Company is expanding its El Paso, Texasplastic

Chapter 6, Problem 6.11

(choose chapter or problem)

The Toro Company is expanding its El Paso, Texasplastic molding plant as it continues to transferwork from Juarez, Mexico contractors. The plantbought a $1.1 million precision injection moldingmachine to make plastic parts for Toro lawn mowers,trimmers, and snow blowers. The plant alsospent $275,000 for three smaller plastic injectionmolding machines to make plastic parts for a newline of sprinkler systems. The plant expects to hire13 people, including some engineers for the expansion.If the average loaded cost (i.e., includingbenefits) of each employee is $100,000 per year,determine the annual worth of the new systemsand employees over a 5-year study period. Use aninvestment return rate of 10% per year, and assumea 25% salvage value for the new equipment. Solveusing factors and a spreadsheet function.