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Maru [420]
3 years ago
14

NSDC has a contract to produce eight satellites to support a worldwide telephone system (for Alaska Telecom, Inc.) that allows i

ndividuals to use a single, portable telephone in any location on earth to call in and out. NSDC will develop and produce the eight units. NSDC has estimated that the R&D costs will be NOK (Norwegian Krone) 12,000,000. Material costs are expected to be NOK 6,000,000. They have estimated the design and production of the first satellite will require 100,000 labor hours and an Page 160Page 16180 percent improvement curve is expected. Skilled labor cost is NOK 300 per hour. Desired profit for all projects is 25 percent of total costs. How many labor hours should the eighth satellite require? How many labor hours for the whole project of eight satellites? What price would you ask for the project? Why? Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate. What impact does this have on the project? Near the end of the project, Deutsch Telefon AG has requested a cost estimate for four satellites identical to those you have already produced. What price will you quote them? Justify your price.
Business
1 answer:
Angelina_Jolie [31]3 years ago
6 0

Answer:

a. 51,200

b. NOK 160,380,000)

c. 222,975,000

d. 16,320,000

e. 60,487,500

Explanation:

A. How many labor hours should the eighth satellite require? 100,000 labor hours x .512 = 51,200 labor hours for the 8thunit

B. How many labor hours for the whole project of eight satellites? 100,000 labor hours for 1stunit x 5.346 = 534,600 total for 8 units (534,600 hours x NOK 300 = NOK 160,380,000)

C. What price would you ask for the project? Why? Labor (534,600 hrs x NOK 300) = NOK 160,380,000R&D = NOK 12,000,000Material = NOK 6,000,000Total = NOK 178,380,000 x 1.25 profit NOK 222,975,000

D. Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate. What impact does this have on the project? 80% improvement = 534,600 labor hours 75% improvement = 480,200 labor hours Difference = 54,400 labor hours x NOK 300 = NOK 16,320,000

E. Near the end of the project Deutsch Telefon AG has requested a cost estimate for four satellites identical to those you have already produced. What price will you quote them? Justify your price. 12 units= 100,000 lhrs for first unit x 6.315 (75%)=631,500 lhrsFirst 8 units= 100,000 x 4.802 (75%) =480,200 lhrsDifference=151,300 lhrsAdditional 4 units= 151,300 lhrs x NOK 300 =NOK 45,390,0001/2 material of 6,000,000 =NOK 3,000,000Total direct costs=NOK 48,390,0001.25 profit=NOK 60,487,500

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rjkz [21]

Answer:

Sunk cost

Explanation:

The sunken cost is the expense previously incurred that will not be compensated in future. Plus, it's also called past expense.  

The cost at the time of decision-making is not significant and it should be ignored.

In the given question, the $3,500 spent which is not now recovered and hence represents the sunk cost

3 0
2 years ago
You expect KT industries (KTI) will have earnings per share of $4 this year and expect that they will pay out $1.75 of these ear
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The value of a share of KTI's stock today is closest to 9.5% , 0.004375 .

Explanation:

Investment Investment (ROI) is an investment performance metric used to evaluate or compare the success of a variety of investment operations.

In addition to the spending price, ROI aims to explicitly calculate the make value of a single project.

g = retention rate

ROI = 0.75*13% = 9.5%,

Price = 1.75/(0.10-0.0975) = 0.004375

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3 years ago
Workers with knowledge-based education and managerial skills are
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3 years ago
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A company is considering investing in a new machine that requires a cash payment of $38,209 today. The machine will generate ann
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Answer:

The IRR is 10%.

Explanation:

a) Calculation of Internal Rate of Return (IRR):

We choose a discount rate, say 10% and use it to discount the cash flows to their present values.  If the net present value (NPV) of all the cash flows equals zero, then that discount rate is accepted as the IRR.

b) Without 10% discount rate, the discount factors are for:

1st year = 1.1 (1 + discount rate) raised to power 1

2nd year = 1.21 (1 + discount rate) raised to power 2

3rd year = 1.331 (1 + discount rate) raised to power 3

c) These discount factors will divide the cash inflows for each year:

1st year, NPV = $15,364/1.1 = $13,967.27

2nd year, NPV = $15,364/1.21 = $12,697.52

3rd year, NPV = $15,364/1.331 = $11,543.20

Total NPV of inflows                 = $38,209 approximately

NPV of outflows                         -$38,209

NPV of inflows and outflows      $0

So, the IRR is 10%.

IRR is a capital budgeting metric to measure profitability by using a discount rate which makes the net present value of all cash flows to become zero.  To get a suitable rate, trial and error is involved, or one can make use of educated best guess.

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Willow Corp. (a C corporation) reported taxable income before the net operating loss deduction (NOL) in the amount of $100,000 i
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Willow Corp NOL carryover to 2021 (year 4) is $10,000

<h3>How to calculate Willow Corp NOL carryover to year 4</h3>

  • Year 3 income = $100,000

Carry forward losses:

  • Year 1 = $50,000
  • Year 2 = $40,000

Total carry forward losses = $50,000 + $40,000

= $90,000

Eligible carry forward loss = $100,000 × 80%

= $100,000 × 0.8

= $80,000

Willow Corp tax liability in year 3 = $100,000 - $80,000 × 21%

= $20,000 × 21%

= 20,000 × 0.21

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Willow Corp NOL carryover to year 4 = Total carry forward losses - Eligible carry forward loss

= $90,000 - $80,000

= $10,000

Learn more about tax:

brainly.com/question/25504231

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