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university of southern california Operations And Supply Chain Management Assignment Help - private hospital


Question - The management of a private hospital is considering the installation of an automatic telephone
switchboard, which would replace a manual switchboard and eliminate the attendant operator's
position. The class of service provided by the new equipment is estimated to be at least equal to the
present method of operation. To provide telephone service, five operators will work three shifts per
day, 365 days per year. Each operator earns $14,000 per year. Company-paid benefits and overhead
are 25% of wages. Money costs 8% after income taxes.
Combined federal and state income taxes are 40%. Annual property taxes and maintenance are 21;2
and 4% of investment, respectively. Depreciation is I5-year straight line. Disregarding inflation, how
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