A firm must decide between two silicon layer chip designs from Intel.effective income tax rate is 40%, and Straight Line depreciation method is used. Ifthe desired after-tax return on investment is 10% per year, which design should bechosen? State your assumptions.TheirDesign ADesign BCapital Investment$1,000,000$2,000,000Salvage Value at end of life$1,000,000$1,100,000Annual revenue less expenses$200,000$400,000Useful Life7years6 years

The detailed solution to this question is given in Step 2.

Answered: A firm must decide between two silicon…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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TRUE OR FALSE 4) Cost plus fixed profit encourages contractors to finish work slowly. 5) On average, design consumes about 10% of total construction project cost.
This is in reference to the AURA resedential development project, which consists of 39 high end units and this project was done by NCB Group in Grand Cayman. This is for a project management course so please answer as such. Explain the processes and/or activities that the project team used to deliver a quality service, result, or product to the sponsor, customers, and users.
Lincoln Electric Inc. has a direct manufacturing cost of $147/welding unit and defective units can be reworked for $46/unit. Of the 343 units that begin production per day, 89% are good and 60% of defective motors can be reworked. What is the yield?
Lazer Technologies Inc. (LTI) has produced a total of 20 high-power laser systems that could be used to destroy any approaching enemy missiles or aircraft. The 20 units have been produced, funded in part as private research within the research and development arm of LTI, but the bulk of the funding came from a contract with the U.S. Department of Defense (DoD). Testing of the laser units has shown that they are effective defense weapons, and if redesigned to add portability and easier field maintenance, the units could be truck-mounted. The DoD has asked LTI to submit a bid for 100 more units. The 20 units that LTI has built so far cost the following amounts and are listed in the order in which they were produced: Use Exhibit 6.4 and Exhibit 6.5. UNITNUMBER COST($ MILLIONS) UNITNUMBER COST($ MILLIONS) 1 $ 13.0 11 $ 2.2 2 7.5 12 2.1 3 5.8 13 1.9 4 4.5 14 1.9 5 4.0 15 1.7 6 3.5 16 1.7 7 3.1 17 1.5…
How can modular software design influence the granularity and precision of cost estimations?
Good morning Bartleby. I have a research assignment that I am busy with regarding Reliability and maintainability of an ASSET. I decided to create a tangible asset for the community, A Solar Power charging Station. A solar power charging station for the neighborhood grid makes up the assets we I have selected to work on. Solar panels, batteries, distribution lines, and a control system make up the charging station. To reduce potential failures, i have concentrated on making sure the charging station's design achieves reliability and maintainability. So I need Bartleby to assist me with the following aspects for my ASSET: I need to... a)Explain how reliability and maintainability can be achieved in the design of the asset.b) Illustrate the possible failures that could occur due to human error. Explain how would one would consider the different elements of maintainability to minimize such errors.c) consider the different elements of maintainability to improve the reliability of the…
The team is eager to bring this to market and thinks they could be really successful and project 10,000 units could be sold! They are woried about setting the right price, but want to make between a 30-40% profit at least. They are unsure about what direction to take. They have seen other less impressive models sell for, on average, $600. They have asked for some help in determining how to proceed on the production front. They have run some prototype builds in which they detailed their process in the attached schedule. Additionally, they think they can rent out a factory for anywhere between $700,000-$1,000,000. They have asked your firm for some advice in helping the price their product. How much would you recommend they price this product for, and why (provide some reasoning on why/how you achieved this price)?
Ideas and thoughts about design should be discussed in detail. What is the difference between a "good" plan and a "bad" one?
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MacDonald Products, Inc., of Clarkson, New York, has the option of (a) proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or (b) having the value analysis team complete a study. If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 100,000 units at $550 each, with a probability of 0.60 and a 0.40 probability of 75,000 at $550. If, however, he uses the value analysis team (option b), the firm expects sales of 75,000 units at $750, with a probability of 0.70 and a 0.30 probability of 70,000 units at $750. Value engineering, at a cost of $100,000, is only used in option b. Which option has the highest expected monetary value (EMV)? The EMV for option a is $ and the EMV for option b is $ Therefore, option has the highest expected monetary value. (Enter your responses as integers.) a
Lazer Technologies Inc. (LTI) has produced a total of 20 high-power laser systems that could be used to destroy any approaching enemy missiles or aircraft. The 20 units have been produced, funded in part as private research within the research and development arm of LTI, but the bulk of the funding came from a contract with the U.S. Department of Defense (DoD). Testing of the laser units has shown that they are effective defense weapons, and if redesigned to add portability and easier field maintenance, the units could be truck-mounted. The DoD has asked LTI to submit a bid for 100 more units. The 20 units that LTI has built so far cost the following amounts and are listed in the order in which they were produced: Use Exhibit 6.4 and Exhibit 6.5. UNITNUMBER COST($ MILLIONS) UNITNUMBER COST($ MILLIONS) 1 $ 13.0 11 $ 2.2 2 7.5 12 2.1 3 5.8 13 1.9 4 4.5 14 1.9 5 4.0 15 1.7 6 3.5 16 1.7 7 3.1 17 1.5…

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