What did surprise you in personalities
1 answer:
You might be interested in
Answer:
NPV = (53,222.44)
Explanation:
Net fixed asset 345,000
Working capital
160,000 inventory + 35,000 Ar = 195,000
short term deb (110,000)
net working capital 85,000
Total investment 430,000
salvage value 345,00 x 25% = 86,250
release of the working capital 85,000
Cash flow at end of project 171,250
annual cash flow
sales 550,000
cost (430,000)
depreciation 69,000
EBT 51,000
tax expense 35%
(17,850)
net income 33,150
+ dep 69,000
cash flow 102,150
Now we calculate the present value of the net cash flow and the present alue fothe end of the project
C 102150
time 4
rate 0.15
PV $291,636.04
Principla (sum of salvage and released Working capital 171,250.00
time 5.00
rate 0.15
PV 85,141.52
NPV = 291,636.04 + 85,141.52 - 430,000 = (53,222.44)
Answer:
(A) Mexican supplier cost = $445,800 or $89.16 average cost.
In-house cost = $714,000 or $142.8
(B) Mexican supplier total weighted score = 0.265 or 22.43%
In-house supplier weighted score= 0.238 or 23.8%
(C) Yes, explaination below
Explanation:
Mexican Supplier cost breakdown:
Quota price $83 X 5000 = $415, 000
Transport cost
1. to transport 5000 doors would require making a total of 20 trips from Mexico to USA (5000/250 doors)
2. at a cost of $825 per trip, total cost to transport doors is = $16,500.
Sending Engineers costs and Negotiation cost =
$5000 + $1000
(Transport+Sending Engineers cost) =
$22,500
Inventory carrying cost= 20% of cost of storing the goods. (total of all other cost) 20% x 22500 = $8300
Total cost = $445,800 or $89.16 average cost.
Total weighted score average:
Using the formula;
Weight= score x rating
Score = Weight/rating (making score subject of the formula)
Mexican Weighted
score1= 16%/3 = 0.0533, + 0.12 score2, + 0.035 + score3, + 0.056 + score4. = 0.265.
American weighted score
Using same formula;
0.04 score1, + 0.15 score2, + 0.014 score3, + 0.034 score 4 = 0.238.
The company should outsource the product. Why? because it will reduce total cost of doors, making them cheaper for if they do so, resulting in higher profit.
