A firm is considering the acquisition of a new machine. The base price is $85,000 and it would cost $15,000 to install. The mach
ine is MACRS 3 year class property and it will be sold after 3 years for $17,000. The machine would also require an increase in net working capital of $10,000. The machine is expected to increase before tax revenues by $40,000 per year. This firm is in a 34% marginal tax bracket. MACRS 3 year factors are 33%, 45%, 15%, and 7% for years 1 through 4 respectively. What is the initial (year 0) net cash outflow. Group of answer choices
Lean manufacturing is a production method in which companies focus on reducing wastage of available resources and maximize productivity of manufacturing process. This process includes introducing activities to minimize harm to environment by draining harmful waste, using environmental friendly products and minimize usage of raw material. Lean manufacturing focuses to improve the product quality to provide greater value to customers.
Answer: It is explaining part of its OPERATIONAL plan.
Operational planning in business is a process of planning an action/actions intended to accomplish specific goals to the process of implementing the actions to achieve those goals.
It describes all the factors and parameters needed to achieve said goals.
Operational planning establish the activities and budgets for each part of the organization.
