Question
In: Economics
An electric switch manufacturing company is try- ing to decide between three different assembly methods. Method...
An electric switch manufacturing company is try-
ing to decide between three different assembly
methods. Method A has an estimated first cost of
$40,000, an annual operating cost (AOC) of $9000,
and a service life of 2 years. Method B will cost
$80,000 to buy and will have an AOC of $6000
over its 4-year service life. Method C costs
$130,000 initially with an AOC of $4000 over its
8-year life. Methods A and B will have no salvage
value, but Method C will have equipment worth
10% of its first cost. Perform both (a) future worth,
and (b) present worth analyses to select the method
at i = 10% per year.
I got for Method C 311K
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
4. An electric switch manufacturing company must choose one of three different assembly methods. Method A...
4. An electric switch manufacturing company must choose one of
three different assembly methods. Method A will have a first cost
of $20,000, an annual operating cost of $5000, and a service life
of 2 years. Method B will cost $50,000 to buy and will have an
annual operating cost of $7000 over its 4-year service life. Method
C will cost $100,000 initially with an annual operating cost of
$5000 over its 8-year life. Methods A and B will have...
4. An electric switch manufacturing company must choose one of three different assembly methods. Method A...
4. An electric switch manufacturing company must choose one of
three different assembly methods. Method A will have a first cost
of $20,000, an annual operating cost of $5000, and a service life
of 2 years. Method B will cost $50,000 to buy and will have an
annual operating cost of $7000 over its 4-year service life. Method
C will cost $100,000 initially with an annual operating cost of
$5000 over its 8-year life. Methods A and B will have...
PLEASE USE FACTORS IF POSSIBLE An electric switch manufacturing company is trying to decide between three...
PLEASE USE FACTORS IF POSSIBLE
An electric switch manufacturing company is trying to decide
between three different assembly methods. Method A has an estimated
first cost of $40,000, an annual operating cost (AOC) of $9000, and
a service life of 2 years. Method B will cost $80,000 to buy and
will have an AOC of $6000 over its 4-year service life. Method C
costs $130,000 initially with an AOC of $4000 over its 8-year life.
Methods A and B will...
Brisonic is a British company that manufactures electric switch boards. The company manufactures and sells switch...
Brisonic is a British company that manufactures electric switch
boards. The company manufactures and sells switch boards in
Australia, Japan, USA, China and Israel. As countries can have
different requirements for switch boards to fit the electric plugs,
each manufacturing subsidiary only manufactures products for the
local market. Based on this information, you are required to answer
the following two questions:
What is the appropriate organizational structure for Brisonic?
Explain your answer and provide a structure figure.
Which staffing philosophy...
Consider the following scenario. Xavier and Yannis can switch between producing baskets and produc- ing birdhouses....
Consider the following scenario. Xavier and Yannis can switch
between producing baskets and produc-
ing birdhouses. Xavier uses 8 hours to produce 1 basket and 2 hours
to produce 1 birdhouse. Yannis
uses 1.5 hours to produce 1 basket and 2 hours to produce 1
birdhouse. In 24 hours, Xavier can produce
3 baskets and 12 birdhouses, and Yannis can produce 16 baskets and
12 birdhouses. If they decided
to trade with one another, at which of the following prices...
A computer manufacturing company is trying to decide whether to purchase specialized assembly equipment today or...
A computer manufacturing company is trying to decide whether to
purchase specialized assembly equipment today
or to wait 5 years from now, when the equipment will be first
needed.
If you were to purchase the equipment today it would cost:
$403,000
5 years from now the equipment would cost: $634,738
The bank is paying 9.00% interest per year, compounded
monthly.
Should you buy the equipment now or wait 5 years to buy the
equipment?
A production manager was testing three different methods of production. Each method was assigned to a...
A production manager was testing three different methods of
production. Each method was assigned to a randomly selected set of
workers (five each), and their time for the task completion was
recorded (given below). The observations are independent, each
population has the same variance, and are Normally distributed.
Method A
Method B
Method C
58
58
48
64
69
57
55
71
59
66
64
47
67
68
49
a) For this data, what is the value of the total...
a. A production manager was testing three different methods of production. Each method was assigned to...
a.
A production manager was testing three different methods of
production. Each method was assigned to a randomly selected set of
workers (five each), and their time for the task completion was
recorded (given below). The observations are independent, each
population has the same variance, and are Normally distributed.
Method A
Method B
Method C
58
58
48
64
69
57
55
71
59
66
64
47
67
68
49
We need to conduct an ANOVA test with the following...
Assume that you are working at a manufacturing company and trying to decide between the following...
Assume that you are working at a manufacturing company and
trying to decide between the following two projects:
Year-End Cash Flows $ thousands)
Project
0
1
2
A
-27
16
21
B
-77
40
50
Q1. If the cost of capital is 8%, use the incremental IRR rule
to make the decision.
Q2. If the cost of capital is the same as the Q1, determine the
NPV of each project.
A company uses three different assembly lines – A1, A2, and A3 – to manufacture a...
A company uses three different assembly lines – A1, A2, and A3 –
to manufacture a particular component. Of those manufactured by
line A1, 5% need rework to remedy a defect, whereas 8% of A2’s
components need rework and 10% of A3’s need rework. Suppose that
50% of all components are produced by line A1, 30% are produced by
line A2, and 20% come from line A3.
(a) Suppose a component is selected at random, what is the
probability that...
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