Question 28 Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. Variable Speed Dual Speed First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years a. Select Variable Speed Ob. Select Dual Speed -270,000 -135,000 75,000 6 -245,000 -139,000 35,000 6

Question 28 Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. Variable Speed Dual Speed First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years a. Select Variable Speed Ob. Select Dual Speed -270,000 -135,000 75,000 6 -245,000 -139,000 35,000 6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question: A piece of machinery has a cost basis of $45,000. Its salvage value will be $5000 after 10,000 hours of operation. With units-of-production depreciation, what is the allowable depreciation rate per hour? What is the book value after 4,000 hours of operation? Suggestion: Use straight-line on an hourly basis for the rate. Use that rate to determine the BV @ 4,000 hours.
Question 13 Mack Company has a machine with a book value of $80,000 and a remaining four-year useful life. A new machine is available at a cost of $110,000, and Mack can also receive $50,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $15,000 per year over its four-year useful life. Show the computations as to whether the machine should be replaced or kept.
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nt riet erences Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $47,000, an annual operating cost (AOC) of $8,000, and a service life of 2 years. Method B will cost $88,000 to buy and will have an AOC of $7,500 over its 4-year service life. Method C costs $129,000 initially with an AOC of $4,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 10% of its first cost. Perform a future worth analysis to select the method at /= 14% per year. The future worth of method A is $[ The future worth of method B is $[ The future worth of method C is $[ Metho (Click to select) is selected. C
QUESTION 4 An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeksMaximum delivery time: 3.5 weeksNormal usage: 52 000 units per yearPurchase price per unit: R8.50Cost of placing an order: R18.00Interest rate: 2% per yearStoring cost per unit: R2.50 Required: Calculate the re-order point if the organisation has a policy to keep safety stock. Calculate the safety stock that should be kept by the organisation.
Soru 1 Henüz cevaplanmadi 1,00 0zerinden işaretlenmiş P Soruyu işaretle New digital scanning graphics equipment is expected to cost 550023, to be used for 6 years, and to have an annual operating cost (AOC) of $10071. Determine the AW values for one and three life cycles at i 10% per year.
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PROBLEM 2 fol Acoustics, Inc. (AA) projects unit sales for a new seven-octave voice emulation implantas follows: Year 1 2 3 4 5 Production of the implants will require $2,350,000 in net working capital to start and additional net working capital investments each year equal to 25 percent of the projected sales increase for the following year. Total fixed costs are $1,490,000 per year, variable production costs are $239 per unit, and the units are priced at $359 each. The equipment needed to begin production has an installed cost of $30,000,000. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS (MACRS Table) property. In five years, this equipment can be sold for about 20 percent of its acquisition cost. AAI is in the 40 percent marginal tax bracket and has a required return on all its projects of 16 percent. Unit Sales 115,000 134,000 122,000 105,000 91,000 What are operating cash flows,…
i 4 ances Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of five years. It can be sold now for $57,000. Variable manufacturing costs are $50,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Purchase price Variable manufacturing costs per year (a) Compute the income increase or decrease from replacing the old machine with Machine A (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) if the machine should be replaced, which new machine should Lopez purchase? Req A Complete this question by entering your answers in the tabs below. Revenues Machine A: Keep or Replace Analysis Req B Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be…
SH W S Current Attempt in Progress Bridgeport Hammocks is considering the purchase of a new weaving machine to prepare fabric for its hammocks. The machine under consideration costs $67,100 and will save the company $10,000 in direct labor costs. It is expected to last 10 years. Click here to view the factor table. (a) Calculate the internal rate of return on the weaving machine. (Round answer to 0 decimal place, e.g. 15.) H and Internal rate of return (b) If Bridgeport uses a 10% hurdle rate, should the company invest in the machine? eTextbook and Media Save for Later 3 So E D C 4 Ⓒ stv 888 R F 26 5 TS A T G 6 % B MacBook Air 223 Y OCT 5 H 3 N 00 FY H 8 Dil FO M I Attempts: 0 of 3 used Submit Answe W 9 K DO भ6 O L command F10 P V x opt
Question 5 A machine that have the following cost is under consideration for a new manufacturing process. The interest rate is 6% compounded semiannually. First cost = $70,000 Semiannual operating cost = 6,000 Semiannual income = 18,000 Salvage value = 9,000 Life in years = 5 years a. PW = $29,059 b. PW = $39,059 O c. PW = -$39,059 d. PW = $19,059
! Required information An engineer calculated the PW values for four alternatives to develop a remotely controlled vibrations control system for offshore platform applications. The results in the table use a MARR of 14% per year. Alternative Life, n, years PW over n years, $ PW over 6 years, $ PW over 12 years, $ || 3 16.08 26.94 39.21 J 14 31.12 15.78 60.45 K 12 -257.46 -653.29 -257.46 L 6 160 160 160 Determine which alternative(s) should be selected if the projects are independent. Alternative I is (Click to select) ✓ alternative J is (Click to select) (Click to select) ✓ alternative K is (Click to select) ✓ and alternative L is