Question

In: Accounting

Hillside Farms has an apple orchard that they pay migrant workers to work in every fall...

Hillside Farms has an apple orchard that they pay migrant workers to work in every fall season. They are considering a new machine that will reduce their costs of labor annually if they purchase the machine. This machine will allow for growing demand that they have in the apple orchard. The cost of the Machine is $170,000 and has a life of 7 years. The labor savings for the next seven years is expected to be: Year 1 $40,000 Year 2 $45,000 Year 3 $45,000 Year 4 $50,000 Year 5 $50,000 Year 6 $55,000 If Hillside farms has a discount rate of 15% should they accept the project? Required: (show your work – what keys to you use and the values on the Financial Calculator) a. What is the Net Present Value for this project? b. What is the Internal Rate of Return for this project? .

Solutions

Expert Solution

Answer . The labour saving is provided only for 6 years

since the npv is -ve on 17% the IRR will be 16.17%


Related Solutions

You are a manager of an apple orchard. For harvesting apple, you need to hire some workers.
You are a manager of an apple orchard. For harvesting apple, you need to hire some workers. Worker is the variable factor and per worker wage is $40/day. Fixed cost of the orchard is $10 per day. You have been given the following information in relation to your apple harvesting: Workers per day Harvesting kg per day 0 0 1 100 2 275 3 460 4 620 5 755 6 860 7 920 8 960 a) Calculate marginal cost, average...
Walnut Orchard has two farms that grow wheat and corn. Because of different soil conditions, there...
Walnut Orchard has two farms that grow wheat and corn. Because of different soil conditions, there are differences in the yields and costs of growing crops on the two farms. The yields and costs are sown in the table below. Each farm has 100 acres available for cultivation; 11,000 bushels of wheat and 7,000 bushels of corn must be grown. Use LP to determine a planting plan that will minimize the cost of meeting these demands. Farm 1 Farm 2...
Apple Inc. recently issued 15-year bonds at $950 per share. These bonds pay $25 coupons every...
Apple Inc. recently issued 15-year bonds at $950 per share. These bonds pay $25 coupons every six months. Their price has remained stable since they were issued, i.e., they still sell for $950 share today. Due to additional financing needs, the firm wishes to issue new bonds that would have a maturity of 15 years, a par value of $1,000, and it will pay $20 coupons every six months. If both bonds have the same yield to maturity, how many...
my program should work for ANY NUMBER OF WORKERS..after all worker gross and net pay have...
my program should work for ANY NUMBER OF WORKERS..after all worker gross and net pay have been calculated, you should display the total number of workers, the total gross pay, and the total net pay. Employee ID Employee Name The number of hours worked The Employees hourly wage… i used while loop EmpName= input(str("PLease enter Employee name: or press -1 to exit: ")) while EmpName != "-1": EmpID= input("Enter Employee ID: ") how do i write this in a list...
The government of Thailand has issued a decree to pay a stimulus check to every person...
The government of Thailand has issued a decree to pay a stimulus check to every person who lost a job due to the COVID-19 crisis (and qualified under other criteria). What was the economic consideration under such policy? What would be the main channel for the economic effect? What would the effect be on consumption and saving if instead of such policy the government would have cut taxes?
The government of Thailand has issued a decree to pay a stimulus check to every person...
The government of Thailand has issued a decree to pay a stimulus check to every person who lost a job due to the COVID-19 crisis (and qualified under other criteria). What was the economic consideration under such policy? What would be the main channel for the economic effect? What would the effect be on consumption and saving if instead of such policy the government would have cut taxes?
The domicile is the method of taxing individuals. Every individual has to pay state taxes based...
The domicile is the method of taxing individuals. Every individual has to pay state taxes based on the residency, even if individual earn money in another state or country. The article shows three different cases, where taxpayers did not understand the rules of the domicile. The individual should consult with licensed and experienced accountant how to terminate place of the old domicile and  how  to get the new  place of domicile. It would help the individual to avoid problems and penalties with a...
The local power company has three different pay periods. Some workers are paid via the job,...
The local power company has three different pay periods. Some workers are paid via the job, some are paid weekly, and others are paid only once a month. The accounts payable department has had a horrific time paying all of these by hand and trying to ensure that the appropriate pay goes to the appropriate employee. The accounts payable department has asked HR to have a program created that allows them to input the name of the employee and have...
Use the information below to work the problems in this section. Assume every month has four...
Use the information below to work the problems in this section. Assume every month has four weeks January demand is 200 February demand is 300 Beginning inventory is 54 Lot size is 150 Firm planned orders for the first six weeks are: 50, 38, 22, 18, 6, and 2 The remaining two weeks do not have any firm orders Develop a master production schedule.
2. Suppose that Person B has 16 hours a day available to work for pay or...
2. Suppose that Person B has 16 hours a day available to work for pay or do unpaid activities. This person's wage rate is $10/hr. Person B obtains the highest level of utility by working 5 hours/day (remotely). Today, Person B was told that she will begin receiving $20/day in unearned income, say from interest on a savings account. a. (5 points) Draw a fully-labeled graph to illustrate the shape of indifference curves that could lead Person B to quit...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT