Q3 b.equipment for a production line. She must choose between two alternatives: building the equipment orbuying the equipment off the shelf. Each alternative has a different service life and a different set ofA mechanical engineer has decided to introduce automated materials-handlingcosts.Alternative 1: Build custom automated materials-handling equipment.$15 000$3300 per year$400 per yearS2400 per yearFirst costLabourPowerMaintenanceTaxes and insurance $300 per yearService life10 yearsAlternative 2: Buy off-the-shelf standard automated materials-handling equipment.First cost$25 000Labour$1450 per yearS600 per year$3075 per yearPowerMaintenanceTaxes and insurance $500 per yearService life15 yearsIf the MARR is 9 percent, which alternative is better?

Net present value refers to the value of future cash flow from an investment that is usually accrued…

Q3 A mechanical engineer has decided to introduce automated materials-handling equipment for a production line. She must choose between two alternatives: building the equipment or buying the equipment off the shelf. Each alternative has a different service life and a different set of costs. Alternative 1: Build custom automated materials-handling equipment. First cost $15 000 $3300 per year $400 per year S2400 per year Taxes and insurance $300 per year 10 years Labour Power Maintenance Service life Alternative 2: Buy off-the-shelf standard automated materials-handling equipment. First cost $25 000 Labour S1450 per year f600

Q3 A mechanical engineer has decided to introduce automated materials-handling equipment for a production line. She must choose between two alternatives: building the equipment or buying the equipment off the shelf. Each alternative has a different service life and a different set of costs. Alternative 1: Build custom automated materials-handling equipment. First cost $15 000 $3300 per year $400 per year S2400 per year Taxes and insurance $300 per year 10 years Labour Power Maintenance Service life Alternative 2: Buy off-the-shelf standard automated materials-handling equipment. First cost $25 000 Labour S1450 per year f600

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Westfall Company has a contract to produce 10,000 garden hoses for a large discount chain. Westfall has four different machines that can produce this kind of hose. Because these machines are from different manufacturers and use different technologies, their specifications are not the same. Machine 1 2 3 4 Fixed Cost to Set Up $750 $500 $1000 $300 Variable Cost Per Hose $1.25 $1.50 $1.00 $2.00 Capacity (units) 6000 7500 4000 5000 If machine 2 is used, machine 3 must be used also. However, if machine 3 is used, machine 2 need NOT be used. The company wants to minimize the total cost of fulfill the contract. Please formulate a mixed integer linear programming problem to decide which machine(s) to use and how many garden hoses to produce on each machine if the machine is used. The correct set of decision variables is:
I could use a hand with this
Morton and Moore LLC (M²) is trying to decide between two machines that are necessary in its manufacturing facility. If M² has a MARR of 10%, which of the following machines should be chosen? Hint: Minimize EUAC. Machine A Machine B 6- 28 620 First cost $45,000 $24,000 Annual operating costs 31,000 35,000 Overhaul in Years 2 and 4 6,000 Overhaul in Year 5 12,000 Salvage value 10,000 8,000 Useful life 8 years 6 years 1 Ne Ac Ca Ca EM Ye Co Pr Ri Vi Ge Lit Ra Ne An Pr Sa Sc Be
Sammamish Brick, Inc., manufactures bricks using clay deposits on the company's property. Raw clays are blended and then extruded into molds to form unfired bricks. The unfired bricks are then stacked onto movable metal platforms and rolled into the kiln where they are fired until dry. The dried bricks are then packaged and shipped to retail outlets and contractors. The bottleneck in the production process is the kiln, which is available for 2,200 hours per year. Data concerning the company's four main products appear below. Products are sold by the pallet. Gross revenue per pallet Contribution margin per pallet Annual demand (pallets) Hours required in the kiln per pallet Traditional Brick $769 $480 75 10 Textured Facing $1,331 $ 620 Cinder Block $608 $388 85 4 Roman Brick $886 $455 95 10 150 No fixed costs could be avoided by modifying how much is produced of any product. Required: 1a. Calculate the total hours required in the kiln to satisfy demand for all products. Traditional…
BREAK-EVEN POINT Just Loft Inc. (JL), builds a loft that is easily adaptable to most dorm rooms or apartments and can be assembled into a variety of configurations. Each loft is sold for $500, and the cost to produce one loft is $300, including all parts and labor. JL has fixed costs of $100,000. a) What happens if JL produces nothing? b) Now, assume JL produces and sells one unit (loft). What are their financial results? c) Now, what do you think would happen if they produced and sold 501 units? d) How many units would JL need to sell in order to break even? e) How many units would JL need to sell if they wanted to have a pre-tax profit of $50,000?
Swifty's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $117000 22000 49000 30000 If Swifty's Manufacturing Company purchases the component externally, $20000 of the fixed costs can be avoided. What is the maximum amount Swifty is willing to pay to purchase the 100 units? $218000 O $188000 $198000 $208000
Provide solution for this question
How should I prepare a differential analysis showing whether or not I would recommend that the convertible tops be purchased from Dustin Company?
Blue Spruce Tech produces 60,000 iPhone adapters with the following costs:
Himalayan Engineering Works currently takes four days to convert the raw material and components to finished goods. The firm is considering in buying a set of new machines which will reduce the conversion time to 1.5 days. If the firm decides to buy the machines, how does this decision affect the working capital requirement? Working Capital requirement will increase Working Capital requirement will decrease No change in working capital requirement Change in conversion time has no relationship with working capital requirement

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