A new production equipment with a purchase price of $125,000, freight costs of $12,500, setup costs of $8,500, and testing fees of $4,000, would have a cost basis of what?
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A new production equipment with a purchase price of $125,000, freight costs of $12,500, setup costs of $8,500, and testing fees of $4,000, would have a cost basis of what?
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- A new production equipment with a purchase price of $125,000, freight costs of $12,500, setup costs of $8,500, and testing fees of $4,000, would have a cost basis of what? Need answerA company is evaluating a project that requires 600kg of raw material “A”. The company has 250kg of “A” in stock that was purchased in the past for RO40 per kg. The company no longer has any use for “A”. The inventory of “A” could be sold for RO25 per kg. The current purchase price for A is RO55 per kg. What is the total relevant cost of raw material A for the project?If the air-conditioning system for a 200,000 ft2 building is estimated to be 400 ft2 per ton and to cost $4000 per ton, then what will be the system cost? And If, through load management, the system capacity for the building in above problem is reduced by 10%, will the system cost be reduced by 10%? If not, why?
- (c) If Sarasota could lease the manufacturing facilities to another company for $25,200 per year, what would be the net total cost to outsource production of the part? Net cost to buy $A new project being considered by BLW Co would require 1,000 hours of skilled labour. The current workforce is already fully employed but more workers can be hired in at a cost of $20 per hour. The current workers are paid $15 per hour on a project that earns a contribution of $10 per hour. What is the relevant cost of labour to be included in the project appraisal? A $10,000 B $15,000 C $20,000 D $25,000Operating costs are an important criteria when selecting what machinery would be the best choice for a company. What is the EUAW of this investment that costs $53,700, has annual benefits of $8,162/year, annual costs of $1,540/year, and a disposal cost of $4,800 at the end of its useful life? It has a useful life of 14 years. Use a 15% MARR.
- You are evaluating a product for your company. You estimate the sales price of the product to be $200 per unit and sales volume to be 2,000 units in year 1; 5,000 units in year 2; and 1,000 units in year 3. The project has a three-year life. Variable costs amount to $75 per unit and fixed costs are $200,000 per year. The project requires an initial investment of $360,000 in assets that will be depreciated straight-line to zero over the three-year project life. The actual market value of these assets at the end of year 3 is expected to be $40,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 13 percent. What will the year 2 free cash flow for this project be? Multiple Choice $170,412 $192,500 $201,300 $520,950NikulMKM International is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machines are in consideration. Machine 1 costs $450,000, but yields a 15 percent savings over the current machine used. Machine 2 costs $800,000, but yields a 25 percent savings over the current machine used. In order to meet demand, the following forecasted cost information for the current machine is also provided. LOADING... Year Project Cost 1 1,000,000 2 1,350,000 3 1,450,000 4 1,550,000 5 2,550,000 a. Based on the NPV of the cash flows for these 5 years, which machine should MKM International purchase? Assume a discount rate of 12 percent. Assuming a discount rate of 12 percent, MKM International should purchase ▼ machine 1 or machine 2 because the NPV of machine 1 is $------ and the NPV of machine 2 is $--------. (Enter your responses…
- A proposed project has estimated sale units of 2,500, give or take 2 percent. The expected variable cost per unit is $12.79 and the expected fixed costs are $17,500. Cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $2,850. The sale price is estimated at $15.40 a unit, give or take 3 percent. The company bases its sensitivity analysis on the expected case scenario. If a sensitivity analysis is conducted using a variable cost estimate of $13, what will be the total annual variable costs? Show me answerA proposed project has estimated sale units of 2,500, give or take 2 percent. The expected variable cost per unit is $12.79 and the expected fixed costs are $17,500. Cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $2,850. The sale price is estimated at $15.40 a unit, give or take 3 percent. The company bases its sensitivity analysis on the expected case scenario. If a sensitivity analysis is conducted using a variable cost estimate of $13, what will be the total annual variable costs?McPupper Steel has products that cost $10,500 to manufacture. The products can be sold as is for $13,000 or could be processed further for a cost of $2,100 and sold for $14,000. What would be the incremental profit or (loss) of processing the products further and selling them instead of selling them as is?