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- The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year every year. The software and installation from Vendor B costs $280,000 and is expected to increase revenue $95,000 per year. Manuel's uses a 4-year planning horizon and a 10% per year MARR. What is the present worth of investment from Vendor B (rounded to the nearest peso)? A) P21,137 B) P22,507 C) P17,485 D) P15,742NEED ASAP with a complete solution! A particular university was considering whether to offer a seminar for executives. The tuition would be USD 650 per person. Variable costs, including meals, parking, and materials, would be USD 80 per person. Certain costs offering the seminarIncluding advertising, instructors' fees, room rent, audiovisual equipment rent would not be affected by the number of people attending Such costs. which could be thought of as fixed costs amounted to USD 8,000 for the seminar. • Given this information. If the school wanted at least to break even on this program, how many students should they expect to attend? a) 15 b) 14 c) 20possible annual sales may not exceed $50 lakhs and if there is competition it may fall considerably. of a new 48. A company has a project to install a new machine exclusively for the manufacture product which is expected to have good demand and reasonably high margin. Maximum e company has obtained quotations and short listed two offers for the new machine. Details in respect of the two models are given below : Machine Models M, $ 50 lakhs 5 lakhs 15 lakhs $ 50 lakhs Maximum possible sales per year Fixed Costs per year Estimated profit for maximum sales 8 lakhs 17 lakhs You are required to calculate : (i) Break even sales of each machine; (ii) Sales at which both models will give the same profit;
- Jax Inc is considering the purchase of a new machine for the production of computers. Machine A costs $7,000,000 and will last for six years. Variable costs are 25% of sales, and fixed costs are $500,000 annually. Machine B costs $10,000,000 and will last for ten years. Variable costs for the machine are 15% of sales, and fixed costs are $750,000 annually. The sales for each machine will be $4,000,000 per year. The required rate of return is 9%, the tax rate is 21%, and both machines will be depreciated using straight-line depreciation with no salvage value. Calculate the equivalent annual annuity for Machine B. (Round to 2 decimals) What is the Net Present Value for Machine B? (round to 2 decimals)A particular university was considering whether to offer a seminar for executives. The tuition would be USD 650 per person. Variable costs, including meals, parking, and materials, would be USD 80 per person. Certain costs of offering the seminar, including advertising, instructors' fees, room rent, and audiovisual equipment rent, would not be affected by the number of people attending. Such costs, which could be thought of as fixed costs, amounted to USD 8,000 for the seminar. Given this information, if the school wanted at least to break even on this program? how many students should they expect to attend? 20 15 14 none of theseBillingham Packaging is considering expanding its production capacity by purchasing a new machine, the XC-750. The cost of the XC-750 is $2.77 million. Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $45,000 feasibility study to analyze the decision to buy the XC-750, resulting in the following estimates: • Marketing: Once the XC-750 is operational next year, the extra capacity is expected to generate $10.05 million per year in additional sales, which will continue for the 10-year life of the machine. • Operations: The disruption caused by the installation will decrease sales by $5.09 million this year. As with Billingham's existing products, the cost of goods for the products produced by the XC-750 is expected to be 72% of their sale price. The increased production will also require increased inventory on hand of $1.11 million during the life of the project, including year 0. • Human Resources: The…
- The engineering team at Manuel’s Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year every year. The software and installation from Vendor B costs $280,000 and is expected to increase revenue $95,000 per year. Manuel’s uses a 4-year planning horizon and a 10% per year MARR. Solve, a. What is the discounted payback period of each investment? b. Which ERP system should Manuel purchase if his decision rule is to select the system with the shortest DPBP?23 )See-Clear Optics is considering producing a new line of eyewear. After considering the costs of raw materials and the cost of some new equipment, the company estimates fixed costs to be Php 1,000,000 with a variable cost of 2,000 per unit produced.a. If the selling price of each new product is set at Php 3500, how many units need to be produced and sold to break even?b. If the selling price of the product is set at Php 3000 per unit, See-Clear expects to sell 2000 units. What would be the total contribution to profit from this product at this price?c. See-Clear estimates that if it offers the product at the original target price of Php 3500 per unit, the company will sell about 1500 units. Will the pricing strategy of Php 3500 per unit or Php 3000 per unit yield a higher contribution to profit?
- The chances of product success is 50 percent without any additional cost. For a cost of $175,000, the company can conduct research that is expected to increase the chance of product success to 65 percent. Alternatively, the company has the option to pay a firm $460,000 to conduct research. It is expected that the research company service will help increase the chance of success to 75%. The successful launch will reward the company with a payoff of $2.0 million. Any unsuccessful outcome will generate an NPV of zero. Evaluate the impact of each of the three options using the NPV approach and determine the best option for the company.Assume you have developed and tested a prototype electronic product and are about to start your new business. You have purchase pre-programmed computer chips at RM80 per unit. Other component cost includes: plastic casings at RM20 per unit and assembly hardware at RM5 per unit. Direct labour costs are RM15 per hour and 3 units can be produced per hour. You intend tosell each unit at a 50% mark-up over the total costs of producing each unit. The plan is to produce 500 units per months in October, November and December. Sales are expected to be: 200 units in October, 400 units in November and 800 units in December. a.Calculate the amount of sales revenue expected in each month and for the first quarter of the year. b.Prepare a cost of good sold schedule for each of the three months and for the first quarter of the year. Using your cost of good sold estimates and the sales revenues expected in question (a), calculate the gross earning for October, November and December, as well as for…A manufacturer of automated optical inspection devices is deciding on a project to increase the productivity of the manufacturing processes. The estimated costs for the two feasible alternatives being compared are shown below. Use the internal rate of return (IRR) method to determine which alternative should be selected if the analysis period is 8 years and the company's MARR is 4% per year. Alternative M N Initial costs $30,000 $45,000 Net annual cash flow $4,500 $7,000 Life in years 8 8 (a) IRR of base alternative = (b) IRR of incremental cash flow = (c) Choose Alternative