Answer:
The project return is lower than the minimum accepted of 15% thus not profitable for the company
Net Present Value -1.279,86
Explanation:
<u>Loan Present value</u>
PMT of the loan:
PV 65,000
time 4
rate 0.12
C $ 21,400.238
Present value at MARR:
C $21,400.24
time 4 years
rate 0.15
PV $61,097.2175
<u>Salvage value:</u>
Salvage $9,000
time 9 years
rate 0.15000
PV 2,558.36
<u>Cost savings present value:</u>
Cost savings per year: 25,000
less maintenance expenses (13,000)
net cash flow 12,000
C $ 12,000
time 9 years
rate 0.15
PV $57,259.0070
Net Present Value
PV cost savings + PV salvage - PV loan payment
57,259 + 2,558.36 - 61,097.22 = -1.279,86
Answer:
Following are the response to the given points:
Explanation:
For point b:
Answer:
C. $31.88 is the correct answer.
Explanation:
Answer:
Please find the detailed answer as follows:
Explanation:
Consider the table attached in the excel.
The above are the requirements of the units of material if demand of 8080 units of S has to be completed.
The requirement of units of U for maintenance is given in the second table.
As the lead time for S is two weeks the components should be ready by the fifth week.
As the lead time for components T and U both is 2 weeks their components should be ready by the third week.
Hence in the first week the required number of units of V, W, Y and Z are to be ordered as all of them are required in the third week.
The required number of units of X are to be ordered in the second week to be ready in third week.
The required units of U, Y and Z are to be ordered considering the requirement to make S plus the maintenance requirements.
Your insurance company may reward you with a lower rate or deductible
