Ask question

Ask question

All categories

3 years ago

5

An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year. The maintenance and ope

rating cost is $235,000 with an annual gradient of $75,000. The MARR is 10%. What is the most economic life

1 answer:

ololo11 [35]3 years ago

3 0

The answer for this question is 25%

You might be interested in

A firm offers terms of 1.6/10, net 60. a. What effective annual interest rate does the firm earn when a customer does not take t

leva [86]

Answer:

case 1: 12.49%

case 2: 21.20%

case 3: 9.48%

case 4: 13.98%

Explanation:

the rate stands for the period between the last day of the discount and the last day the invoice can be cancelled at nominal.

we equalize this with a rate which capitalize annually and solve for this rate:

$(1+discount)^{(net-d_t)/365} =1+r_e\\ r_e = \sqrt[(net-d_t)/365]{1+discount}$

case 1:

$r_e = \sqrt[(60-10)/365]{1+0.016}$

re = 0.1249 = 12.49%

case 2:

$r_e = \sqrt[(60-10)/365]{1+0.026}$

re = 0.2120 = 21.20%

case 3:

$r_e = \sqrt[(75-10)/365]{1+0.016}$

re = 0.0948 = 9.48%

case 4:

$r_e = \sqrt[(60-15)/365]{1+0.016}$

re = 0.13977 = 13.98%

3 0

3 years ago

You are involved in training and development for your division at dunder mifflin inc. you want to target some specific organizat

grigory [225]

<span>You will probably first have to address the skill category termed basic skills. Basic skills include what you would imagine everyone in a work environment can do and knows about their job. Training that allows them to understand how the insides of the </span>business works, working with one another, customer service, equipment organization and much more.

4 0

4 years ago

Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined the following:

Ostrovityanka [42]

Answer:

-1,185,282.35‬

Explanation:

The average daily collections are the average number of payments times the average value of a payment, so:

Average daily collections = =355 * 945

Average daily collections = $335,475

The present value of the lockbox service is the average daily receipts times the number of days the collection is reduced, so:

PV = (4 day reduction)( $335,475)

PV = $1,341,900‬

The daily cost is a perpetuity. The present value of the cost is the daily cost divided by the daily interest rate. So:

PV of cost = (.3*355)/.00068

PV of cost = $106.5/.00068= $156,617.65

The firm should take the lockbox service. The NPV of the lockbox is the cost plus the present value of the reduction in collection time, so:

NPV = $156,617.65 - 1,341,900

NPV = -1,185,282.35‬

3 0

3 years ago

Read 2 more answers

The following costs related to Summertime Company for a relevant range of up to 20,000 units annually: Variable Costs: Direct ma

il63 [147K]

Answer:

Total cost= $105,000

Explanation:

<u>Because the 15,000 units are in the relevant range, the fixed costs remain constant. Now, we need to calculate the total cost of 15,000 units:</u>

Direct material= 15,000*2.5= 37,500

Direct labor= 15,000*0.75= 11,250

Variable overhead= 15,000*1.25= 18,750

Variable selling and administrative= 15,000*1.5= 22,500

Total variable cost= $90,000

Total fixed costs= $15,000

Total cost= $105,000

4 0

3 years ago

If a firm sells on terms of 2/10 net 30 days, and its DSO is 28 days, then the fact that the 28-day DSO is less than the 30-day

GalinKa [24]

Answer:

a) true

Explanation:

2/10 net 30 means that if the costumer pays within 10 days, he will be offered 2% discount, otherwise the amount is due in 30 days in full.

DSO means average number of days the company takes to receive payment from customers of credit sales.

Since the DSO of a firm given is 28 days, which is lower than the 30 days credit period normally offered by the company, therefore it may indicate that the firm's credit department is operating effectively.

Hence, answer is a) true

7 0

4 years ago