Why are manufacturers of industrial equipment sometimes hesitant to incorporate safety devices into their products? They

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answerhappygod
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Why are manufacturers of industrial equipment sometimes hesitant to incorporate safety devices into their products? They

Post by answerhappygod »

Why are manufacturers of industrial equipment sometimes hesitant
to incorporate safety devices into their products?
They believe that their customers will not pay for the extra
cost of the safety feature and that they will have to offer the
device at their own expense, lowering their profit.
The companies believe that their products are already perfectly
safe and meet international standards, and there is no room for
improvement.
The cost of safety devices exceeds the benefits of reduced
workplace injuries.
The safety devices reduce worker productivity.
Blossom is contemplating a capital project costing $38807.
The project will provide annual cost savings of $15000 for 3
years and have a salvage value of $2000. The company’s required
rate of return is 10%. The company uses straight-line
depreciation.
Rounding to the nearest dollar, the project is
acceptable because it has zero NPV.
acceptable because it has a positive NPV.
unacceptable because it earns a rate less than 10%.
unacceptable because it has a negative NPV.
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