Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table:He is told to assume that:1. The life of each machine is 3 years.Machine AMachine BOriginal CostLabor per year$15,000$20,000$2,200$4,000Maintenance per yearSalvage value$4,600$1,000$2,400$7,5002. The company thinks it knows how to make 8% on investments no more risky than this one.3. Labor and maintenance are paid at the end of the year.• The NPV for Machine A:The NPV for Machine B:Using the net present value as the basis of comparing the machines, Tim shouldrecommend:

Step-by-Step Calculation of NPVs1. Determining the Formula and VariablesNet Present Value (NPV) is…

Answered: Tim Smunt has been asked to evaluate…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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George Galoz & Freres, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week 1 Units (7 2 30 Total Etching Cost 5 18 17. 25 20 24 16 $ 120 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. 3. If the company processes five units next week, what would be the expected total etching cost? (Round your intermediate calculations and final answer to 2 decimal places) Expoctea lotal aiching cost Answer is complete but not entirely correct. 20 50
The following table shows the expenses and income for a local college student. Assume that amounts shown for salaries and wages are after taxes and that 1 month = 4 weeks. Income Expenses Part-time Job: $1100/month Rent: $550/month Student Loans: $8400/year Groceries: $50/week Scholarship: $5700/year Tuition and Fees: $7500/year Health Insurance: $40/month Entertainment: $40/week Phone: $65/month a) What is the student's monthly income? b) What is the student's monthly expenses? c) What is the student's net monthly cash flow?
The data below have been taken from the cost records of the Halifax General Hospital. The data relate to the costs of admitting patients at various levels of patient activity: Month Number of Patients Admitting Admitted Department CostsMay..................................................................... 3,600 $ 29,400June .................................................................... 3,800 $ 28,700July ...................................................................... 2,900 $ 27,400August ................................................................ 3,200 $ 28,000September .......................................................... 3,300…
Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table: Machine A Machine B Original Cost $12,000 $20,000 Labor per year $2,400 $4,400 Maintenance per year $4,000 $1,200 Salvage value $1,600 $7,500 He is told to assume that: 1. The life of each machine is 33 years. 2. The company thinks it knows how to make 88% on investments no more risky than this one. 3. Labor and maintenance are paid at the end of the year. 1. What is the NPV Value of Machine A? 2. Calculate the NPV for Machine B 3. Using the net present value as the basis of comparing the machines, Tim should recommend Machine A or B?
Molly O'Malley is the new manager of the materials storeroom for Tudor Manufacturing. Mollly has been asked to estimate future monthly purchase costs for part #696, used in two of Tudor's products. Molly has purchase cost and quantity data for the past 9 months as follows: Month Cost of Purchase Quantity Purchased January $12,410 2,650 parts February 12,770 2,850 March 17,403 4,116 April 15,838 3,761 May 13,249 2,901 June 14,022 3,376 July 15,237 3,644 August 10,087 2,287 September 14,900 3,592 Estimated monthly purchases for this part based on expected demand of the two products for the rest of the year are as follows: Month Purchase Quantity Expected October 3,350 parts November 3,770 December 3,050 The computer in Molly's office is down, and Molly has been asked to immediately provide an equation to estimate the future purchase cost for part #696. Molly grabs a calculator and uses the high-low method to estimate a cost equation. What…
QUESTION 7 A buyer purchases a job lot of 500 children's jeans, 380 pairs costing $14 each and 120 pairs costing $10 each. If a 52% total markup is targeted, what would be the average unit retail price on each pair of jeans? QUESTION 8 A buyer plans to purchase spring jackets at a 58% markup with a retail total value of $18,500. If the buyer purchases 100 jackets at $52 each and retails them at $125 each, what markup percentage must now be obtained on the balance of the purchases in order to achieve the desired markup percentage?
In 1997 Fuller and coworkers at Texas A&M University estimated the operating costs of cotton gin plants of various sizes. The operating costs of the next to the smallest plant is shown in the following table. x 2000 4000 6000 8000 10000 12000 y 163,200 230,480 301,500 376,160 454,400 536,400 Here x is the annual number of bales produced, and y is the dollar total cost. (Use 4 decimal places in your answer.)A. Determine the best fitting line using least squares. Also determine the square of the correlation coefficient.The best fitting line is C(x) = .The square of the correlation coefficient is r2 = .B. The study noted that revenue was $63.25 per bale. At what level of production will this plant break even?The revenue equation is R(x) = The profit equation is P(x) = The production will break even when bales are produced.C. What are the profits or losses when production is 3000 bales? 4000 bales? (Round to the nearest cent.)When…
Find the optimum number of batches (to the nearest whole number) of an item that should be produced annually (in order to minimize cost) if 300,000 units are to be made, it costs $4 to store a unit for one year, and it costs $300 to set up the factory to produce each batch. A. 32 batches B 47 batches C. 34 batches D. 45 batches
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Please answer C. and D. Palisades Eco-Park is a small ecological reserve that admits a relatively small number of visitors on any day, but provides both educational and entertaining lectures, exhibitions, and opportunities to observe nature. The company has collected the following data on labor costs and number of visitors to the park over the last 30 months. Month Labor Cost Visitors 1 $ 25,820 1,700 2 $ 36,290 2,592 3 $ 39,968 2,811 4 $ 31,648 2,222 5 $ 34,809 2,373 6 $ 32,672 2,181 7 $ 32,023 2,205 8 $ 38,334 2,676 9 $ 38,568 2,760 10 $ 46,933 3,572 11 $ 42,157 2,976 12 $ 39,030 2,804 13 $ 34,444 2,415 14 $ 33,173 2,336 15 $ 36,971 2,508 16 $ 26,500 2,099 17 $ 30,663 3,397 18 $ 29,961 2,786 19 $ 27,590 2,412 20 $ 30,003 2,972 21 $ 25,692 2,000 22 $ 24,655 1,794 23 $ 28,892 3,267 24 $ 30,153 3,817 25 $ 28,119 2,592 26 $ 31,690 3,274 27 $ 28,651 2,989 28 $ 29,927 3,050 29 $ 28,438 2,511 30 $ 27,874 2,075…
An environmental engineer wants to evaluate three different methods for disposing of nonhazardous chemical waste: land application, fluidized-bed incineration, and private disposal contract. Use the estimates below to help her determine which has the least cost at /= 15.00% per year on the basis of an annual worth evaluation. First Cost AOC per Year Salvage Value Life Land $-145000 $-86000 $23000 4 years Incineration $-760000 $-70000 $260000 6 years Contract O $-132000 O 2 years
The following tables show expenses and income for various individuals. Find each person’s net monthly cash flow (it may be negative or positive). Assume that amounts shown for salaries and wages are after taxes and that 1 month=4 weeks. Income Expenses Salary: $36,000/year Pottery sales: $200/month House payments: $800/month Groceries: $150/week Household expenses: $400/month Health insurance: $250/month Car insurance: $600 twice a year Savings plan: $200/month Donations: $600/year Miscellaneous: $800/month

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