Downtown Abbey Corp. wants to buy a new sheep-shearing machine. It has narrowed down the choice to two machines that can do the job equally well: Machine name The Shearilizer Naked Sheep Purchase price 10,000 20,000 Useful life (years) 4 7 Maintenance cost (end of each year) 4,000 3,000 The relevant discount rate is 10%. There are no taxes. What is the net present value of all costs associated with the Shearilizer (in absolute terms)? What is the equivalent annual annuity for the Shearilizer (in absolute terms)? What is the equivalent annual annuity for the Naked Sheep (in absolute terms)? Which machine should the company buy? The one with the higher equivalent annual cost The one with the lower equivalent annual cost

You saw a product sells for $140 on the price tag and costs $100, the Mark-up (%) for this product is ______ (%).      1.4     4     400     40

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Question 7 A factory is considering partially automating one of its production processes, details can be found in the summary table below (all dollars are constant and have the value of today): Description/Data S 1,500,000 6 years S 500,000 Item Investment Project life Salvage value CCA rate Annual savings 30% S 1,000,000 $ 200,000 per year S 125,000 per year S 75,000 per year Labour Annual expenses Material Overhead Marginal tax rate Real interest rate 40% 16% AJ Ignoring for now any effect of inflation, what's the after-tax NPW ? B] If the general inflation rate during the next 6 year is expected be 4% annually, sales and operating costs are to be increased accordingly. What would be the NPW due to inflation? C] How did the NPW change? Why?

No written by hand solution

6. Machine A and Machine B are being considered for the production of a part of a product. The impor- tant differences between the machines are: Machine A Machine B 100 parts/hr 130 parts/hr Production rate Hours available for production Rejection rate 7 hrs/day 6 hrs/day 3 % 10 % The material cost is $6.00 per part, the operator cost is $15.00 per hour, and the variable overhead cost is $5.00 per hour. All defect-free parts produced can be sold for $12 each, and the rejected parts have no value. Assume that the daily demand for this part is large enough that all defect-free parts can be sold. Which machine should be selected? • What should the rejection rate be for Machine B to be as profitable as Machine A?

Solve the attachment.

1. The Great Outdoors Tent can be purchased from a wholesaler for $58 less discounts of 30% and 7%.  The selling price will be the MSRP of $58. If overhead expenses are 25% of the selling price, find the rates of mark up on cost and on selling price?

Trombly Fabrication has three production facilities located in the state, each producing the same basic mix of products. Facility 1 was the original plant and the only one for several years. Facilities 2 and 3 were added recently to handle the increased volume. Data for the three facilities on output and the three primary inputs for the most recent period follow: Value of product produced Materials cost Labor cost Overhead Facility Facility 1 Facility 2 Facility 3 Facility 1 $ 545,698 223,000 92,820 100,980 Required: a. Compute the total factor productivity for the three production facilities. Note: Round your answers to 2 decimal places. Total Factor Productivity Facility 2 $ 283,108 138,400 40, 100 81,900 Facility 3 $ 242,432 123,700 36,200 71,900

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