Question
In: Economics
You are the manager of a local factory that produces plastic bottles for soft drink manufacturers....
You are the manager of a local factory that produces plastic
bottles for soft drink manufacturers. Your assistant presents the
following data to you that he’s researched:
Estimated life of assembly line: 4 years Initial investment
cost: $800,000
Estimated salvage value: none
Estimated Cash Flow Analysis
Year Expected Cash Flow
1 $350,000
2 240,000
3 220,000
4 105,000
$915,000
a) Your assistant thinks you should buy the new
assembly line based on the information he has gathered. You are not
so sure as of yet. How would you educate your assistant on
decisions such as this? b) Given the correct response to
part a), do you think the firm should buy this machine if the
current interest rate is 12 percent? Why or why not? How did you
come to this decision?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
You are the manager of a local factory that produces plastic bottles for soft drink manufacturers....
You are the manager of a local factory that produces plastic
bottles for soft drink manufacturers. Your assistant comes to you
with exciting news about a new assembly line for the company. He
presents the following data to you that he’s researched: Estimated
life of assembly line: 4 years Initial investment cost: $800,000
Estimated salvage value: none Estimated Cash Flow Analysis Year
Expected Cash Flow 1 $450,000 2 240,000 3 150,000 4 60,000 a) If
the current interest rate is...
You are the manager of a local factory that produces plastic bottles for soft drink manufacturers....
You are the manager of a local factory that produces plastic
bottles for soft drink manufacturers. Your colleague brings an
assembly line project to a meeting with the following
data:
Estimated life of assembly
line:
5 years
Initial investment
cost:
$740,000
Estimated salvage
value:
none
Current interest
rates:
15 percent
Estimated Cash Flow Analysis
Year
Expected Cash Flow
1
$360,000
2
240,000
3
100,000
4
25,000
5 ...
1. You are the manager of a local factory that produces plastic bottles for soft drink...
1. You are the manager of a local factory that produces plastic
bottles for soft drink manufacturers. Your assistant comes to you
with exciting news about a new assembly line for the company. He
presents the following data to you that he’s researched:
Estimated life of assembly
line:
3 years
Initial investment
cost:
$500,000
Estimated salvage value:
none
Estimated Cash Flow Analysis
Year
Expected Cash Flow
1
$250,000
...
25. The volume of soft drink in plastic bottles is a normal random variable with mean...
25. The volume of soft drink in plastic bottles is a normal
random variable with mean 16 ounces and standard deviation 0.6
ounces. a. If a bottle is selected at random, find the probability
that it contains more than 15.8 ounces of soft drink. b. A random
sample of 25 bottles is selected from a large quantity of filled
bottles. Write down the sampling distribution of sample means. Give
the mean and standard deviation of the sampling distribution, and
compare...
A machine used for filling plastic bottles with a soft drink has a target mean fill...
A machine used for filling plastic bottles with a soft drink has
a target mean fill volume of 2.9 liters and a known standard
deviation of 0.05 liter.
State the sampling distribution of the sample mean, if you
obtain a random sample of 25 bottles.
Options-
X bar ~ N(2.9, 0.01)
X ~ N(2.9, 0.01)
X ~ N(2.9, 0.05)
The NEPA Bottling Company, which provides glass bottles to soft drink manufacturers, provided the information regarding...
The NEPA Bottling Company, which provides glass bottles
to soft drink manufacturers, provided the information regarding the
number of cases per shipment, size of cartons, and the
corresponding transportation cost:
Number of Cases/Shipment
(hundreds)
15
22
35
43
58
65
73
82
85
98
Size of Carton
(cubic inches)
12
16
20
24
28
32
36
40
44
48
Transportation Costs
(dollars)
200
260
310
360
420
480
540
630
710
730
The marketing manager is interested in studying the...
The fill amount of bottles of a soft drink is normally distributed, with a mean of...
The fill amount of bottles of a soft drink is normally
distributed, with a mean of
2.0
liters
and a standard deviation of
0.05
liter. Suppose you select a random sample of
25
bottles.
a. What is the probability that the sample mean will be
between
1.99
and
2.0
liters?
b. What is the probability that the sample mean will be
below
1.98
liters?
c. What is the probability that the sample mean will be greater
than
2.01
liters?
d....
The fill amount of bottles of a soft drink is normally distributed, with a mean of...
The fill amount of bottles of a soft drink is normally
distributed, with a mean of
2.0 liters and a standard deviation of 0.05 liter. Suppose you
select a random sample of 25 bottles.
a. What is the probability that the sample mean will be between
1.99 and 2.0 liters?
b. What is the probability that the sample mean will be below
1.98 liters?
c. What is the probability that the sample mean will be greater
than 2.01 liters?
d....
The fill amount of bottles of a soft drink is normally distributed, with a mean of...
The fill amount of bottles of a soft drink is normally
distributed, with a mean of 2.0 liters and a standard deviation of
0.07 liter. Suppose you select a random sample of 25 bottles.
a. What is the probability that the sample mean will be below
1.98 liters?
b. What is the probability that the sample mean will be greater
than 2.01 liters?
c. The probability is 99% that the sample mean amount of soft
drink will be at least...
The fill amount of bottles of a soft drink is normally distributed, with a mean of...
The fill amount of bottles of a soft drink is normally
distributed, with a mean of 2.0 liters and a standard deviation of
0.04 liter. Suppose you select a random sample of 25 bottles.
a. What is the probability that the sample mean will be between
1.99 and 2.0 liters ?
b. What is the probability that the sample mean will be below
1.98 liters ?
c. What is the probability that the sample mean will be greater
than 2.01...
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