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Ivenika [448]
2 years ago
8

The following costs and useful life data are associated with two new machines being considered at Arun Tech Inc.

Business
2 answers:
Sidana [21]2 years ago
6 0

Answer:

Machine B has a higher NPV therefore should be produced

Explanation:

The machine with the higher Net Present Value (NPV) should be produced .

NPV of Machine A

PV of cash flow

PV of annual profit = A × (1- (1+r)^*(-n)/r

A- 92,000, n- 11, r- 12%

PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32

PV of salvage value = 13,000× 1.12^(-11)= 3737.189

NPV =  546268.320 + 3737.189  -250,000 = $300,005.50

NPV of Machine B

A- 103,00, n- 19, r- 12%

PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165

Pv of salvage value = 26000× 1.12^(-19)= 3018.776199

NPV =758675.0165  + 3018.77  -460,000 = $301,693.79

Machine B has a higher NPV , therefore should be produced.

xenn [34]2 years ago
6 0

Answer:

While Machine B has an slightly higher net present value his annual worth is much lower than machine A therefore, the company should purchase machine A which yield better annual return

Machine A

Net Present Value: 300,005.00

Anual worth  $ 50,525.463

Machine B

Net Present Value: 301.693,8‬

Anual worth  $ 40,958.857

Explanation:

We calculate the present value of each machine

and also, the annual worth of each one to get a fair comparison considering their useful life differ

Machine A

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 92,000.00

time 11

rate 0.12

92000 \times \frac{1-(1+0.12)^{-11} }{0.12} = PV\\

PV $546,268.3202

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $13,000.00

time  11.00

rate  0.12000

\frac{13000}{(1 + 0.12)^{11} } = PV  

PV   3,737.1894

Net Present Value:

$546,268.32 + $3,737.19 - $250,000 = 300.005,51‬

Annual worth:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 300,005.00

time 11

rate 0.12

300005 \div \frac{1-(1+0.12)^{-11} }{0.12} = C\\

C  $ 50,525.463

Machine B

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 103,000.00

time 19

rate 0.12

103000 \times \frac{1-(1+0.12)^{-19} }{0.12} = PV\\

PV $758,675.0165

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $26,000.00

time  19.00

rate  0.12000

\frac{26000}{(1 + 0.12)^{19} } = PV  

PV   3,018.7762

Net present value

$758,675.02 + $3,018.78 - 460,000 = 301.693,8‬

Annual worth

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 301,693.80

time 19

rate 0.12

301693.8 \div \frac{1-(1+0.12)^{-19} }{0.12} = C\\

C  $ 40,958.857

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Product Life Cycle All products pass through a product life cycle of four stages: introduction, growth, maturity, and decline. T
Rudiy27

Answer:

The answer is

                               Introduction stage                     Maturity stage

Product                    Gatorade                                   Crest

Price                          Rusk                                          Airwalk

Promotion                Listerine                                    Sony

Place                         Merck                                        Domino's

Explanation:

                               Introduction stage                     Maturity stage

Product                    Gatorade                                   Crest

Price                          Rusk                                          Airwalk

Promotion                Listerine                                    Sony

Place                         Merck                                        Domino's

A marketing mix is a combination of factors that can be controlled by a company to influence its existing customers and potential customers to buy its products.

The above chart explains the marketing mix of the companies and its stages in product, price, promotion and place.

3 0
3 years ago
Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisio
abruzzese [7]

Answer:

Please check the info below

Explanation:

1. For Osaka

Margin =  Net Operating Income / Sales *100

= $ 792000 / $9900000 *100

= 8.00%

Turnover = Sales / Average Operating Assets * 100

= $ 9900000 / $ 2475000 * 100

= 4.00%

ROI =  Margin * Turnover

= 8% *4 %

= 32.00%

Hence the correct answer is 32.00%

For Yokohama :

Margin =  Net Operating Income / Sales *100

= $ 2900000 / $ 29000000*100

= 10.00%

Turnover = Sales / Average Operating Assets * 100

= $ 29000000 / $ 14500000* 100

= 2.00%

ROI =  Margin * Turnover

= 10% *2 %

= 20.00%

Hence the correct answer is 20.00%

2. The correct answer is  

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Yokohama = $ 435,000

3. The correct answer is No

This is because since Osaka has a higher ROI, Yokohama’s greater amount of residual income is not an indication that it is better managed

4 0
3 years ago
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pychu [463]

Answer:

Mobile user.

Explanation:

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Edwin is using the mobile user method in doing his job. He uses his laptop and phone to communicate bwith clients and his office. The laptop is used to handle work through business related software he has installed.

3 0
3 years ago
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stepan [7]

Answer:

this is pretty simple $ 00.27

3 0
3 years ago
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GuDViN [60]
Here are the answers in order: <span>Positive, normative, positive
Positive analysis usually used to find the most efficient way to solve a problem regarding the cost (sometimes it even involve something harsh and unethical)
Normative analysis refers to what should've been done after considering ethical value

</span>
7 0
3 years ago
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