Suppose that a firm is considering opening a plant on the moon, and the current exchange rate is 1,320 moon pieces (mp) per dollar. Also, the wage rate is 23,000 mp per hour. Suppose further thatUS workers can produce 260 units per hour, while workers on the moon are expected to be able to produce 380 units per hour (the lower gravity level helps them work faster)The moon wage rate without considering productivity is $hr (round your response to the nearest penny).b. The moon relative" wage rate considering productivity is Shr (round your response to the nearest penny)Suppose that the US wage rate is $24.00 per hour. If the U.S. managers want to become the location of choice for production, and if they cannot lower their wage rate due to labor unionagreements, what does the labor productivity in the U.S. need to become?The labor produtivity in the U.S. needs to be at least Juntshr (round your response to one decimal place).

Labor productivity is defined as the rate of real output in units per worker in a firm per unit of…

Answered: Suppose that a frm is considering…

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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The cost of producing a particular type of auto- mobile in four different countries is shown in the table below: Number of Fixed cost Total Variable cost (Ksh. 0,000) cars Country produced |(Ksh. 0,000) Japan 100 140 India 9. 30 150 China 15 120 330 Germany 12 200 160 Suppose the selling price per car is Ksh. 720,000, in which country would the break- even be 2.4 cars? {Assume linear CVP analysis}
Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $5.00 million per year. Your upfront setup costs to be ready to produce the part would be $8.00 million. Your discount rate for this contract is 8.0%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm? Question content area bottom Part 1 a. What does the NPV rule say you should do? The NPV of the project is $ enter your response here XX million. (Round to two decimal places.)
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DLR Rheosystems makes high performance rotational viscometers capable of steady shear and yield stress testing in a rugged, compact footprint. How much could the company afford to spend now on new equipment in lieu of spending Php 200 000 one year from now and Php 300 000 three years from now, if the company uses an interest rate of 15 % per year? a.) Php 236 715.33 b.) Php 371 176.91 c.) Php 288 621.15 d.) Php 345 440.06
Your options for shipping $100,000 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 30 days at a cost of $3,800, or (2) truck the parts to Los Angeles and then ship at a total cost of $4,800. The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year. If you have a third option and it costs only $4,000 and also takes 20 days, what is your most economical plan? Assume 365 days per year. The daily holding cost of Alternative 1 is $ 82.19. (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 2 is $ 100.00. (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 3 is $ (Enter your response rounded to two decimal places.)
Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $4.83 million per year. Your upfront setup costs to be ready to produce the part would be $8.13 million. Your discount rate for this contract is 7.9%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm?
Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.17 million per year. Your upfront setup costs to be ready to produce the part would be $8.17 million. Your discount rate for this contract is 8.3% a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm?
Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $4.83 million per year. Your upfront setup costs to be ready to produce the part would be $8.02 million. Your discount rate for this contract is 8.1%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm? Question content area bottom Part 1 a. What does the NPV rule say you should do? The NPV of the project is $XXX enter your response here million. (Round to two decimal places.) Part 2 What should you do? (Select the best choice below.) A. The NPV rule says that you should accept the contract because the NPV less than 0. B. The NPV rule says that you should not accept the contract because the NPV less than 0. C. The NPV rule says that you should not accept the contract because the NPV greater…

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