Henrie’s Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $125,080, including freight and installation. Henrie’s has estimated that the new machine would increase the company’s cash inflows, net of expenses, by $40,000 per year. The machine would have a five-year useful life and no salvage value.
Required: 1. Compute the machine’s internal rate of return. (Round your 'IRR' answer to nearest whole percentage.)
2. Compute the machine’s net present value. Use a discount rate of 18%.
3. Suppose that the new machine would increase the company’s annual cash inflows, net of expenses, by only $34,700 per year. Under these conditions, compute the internal rate of return. (Round your 'IRR' answer to nearest whole percentage.)
In: Accounting
EBIT Sensitivity Stewart Industries sells its finished product for $ 8.66 per unit. Its fixed operating costs are $ 18 comma 800, and the variable operating cost per unit is $ 4.03. a. Calculate the firm's earnings before interest and taxes (EBIT) for sales of 9 comma 000 units. b. Calculate the firm's EBIT for sales of 7 comma 000 and 11 comma 000 units, respectively. c. Calculate the percentage changes in sales (from the 9 comma 000-unit base level) and associated percentage changes in EBIT for the shifts in sales indicated in part (b). d. On the basis of your findings in part (c), comment on the sensitivity of changes in EBIT in response to changes in sales.
a. The firm's earnings before interest and taxes is $ nothing. (Round to the nearest dollar.)
In: Finance
Race One Motors is an Indonesian car manufacturer. At its largest manufacturing? facility, in? Jakarta, the company produces subcomponents at a rate of 295 per? day, and it uses these subcomponents at a rate of 12,100 per year? (of 250 working? days). Holding costs are ?$3 per item per? year, and ordering costs are ?$31 per order.
a. what is the economic production quantity? (round to two decimal places)
b. how many production runs per year will be made? (round to two decimal places)
c. what will be the maximum inventory level? (round to two decimal places)
d. what percentage of time will the facility be producing components? (enter your response as a percentage rounded to two decimal places)
e. what is the annual cost of ordering and holding inventory? (round to two decimal places)
In: Operations Management
partial income statements for Sherwood company summarized for a four year period show the following
2015 2016 2017 2018
net sales 2,200.000 2,600.000 2,700.000 3,200.000
cost of goods sold 1,496.000 1,742.000 1,863.000 2,176.000
gross profit 704.000 858.000 837.000 1,024.000
an audit reveled that in determining these amounts, the ending inventory for 2016 was overstated by $22,000. the inventory balance on December 31, 2017. was accurately stated. the company uses a periodic inventory system
1\ restate the partial income statements to reflect the correct amounts after fixing the inventory error
2\ compute the gross profit percentage for each year (a) before the correction and (b) after the correction
2.a\ does the pattern of gross profit percentage lend confidence to your corrected amount
In: Accounting
A. An earthwork contract requires to cut and move excavated rocks. The site is a typical limestone rock formation in a cut section, which is 15,000 ft long, 85 ft wide, and 3 ft deep. Seismographic tests indicate a seismic wave velocity of 5,000 fps for the rock layer material. The contractor proposes to rip the rock with a 370-hp crawler tractor. Answer the following questions.
(a) Calculate the production in bcy per hour, for full-time ripping, with efficiency based on a 45 -min hour. Assume that the ripper is equipped with a single shank and that ripping conditions are average (i.e., intermediate between extreme conditions). This is classified as heavy ripping.
(b) Estimate the ripping unit-production cost in dollars per bcy using your calculated hourly production. The normal O&O cost per hour, including operator, for a tractor w/ ripper $130.00. The operator’s wage with fringe is $33.00 per hour.
(c) What is the total direct cost of the cut quantity?
(d) What is the total duration of the rock cut project assuming 10 hours per day work?
B. As a Construction Manager for this site development project, prepare detailed cost estimate for the project, and bid documents.
Assume 10% time value cost of money, bonds, insurance, and storage over total direct cost, contingency at 2% of total direct cost, indirect overhead cost at 5% of total direct cost (additional on top of the equipment and operator costs), and 10% fee (on subtotal total of direct and indirect cost).
In: Civil Engineering
Sailplanes use updrafts to stay aloft for hours at a time. Near one particular airfield, a stone quarry (with very dark rocks) surrounded by a wooden area provides a particularly regular source for updrafts on hot days. With your knowledge of heat transfer, explain the processes that create the updraft
In: Mechanical Engineering
What happens to the light [energy] after it enters an eye and hits the rods and cones? I presume the energy becomes electrical, and it must be near 100% perfect, else our eyes would heat up? Or am I missing something?
The motivation of this question is solar panel technology.
In: Physics
Briefly discuss the main difference between the valence bond and molecular orbital treatments of electronic states in molecules. Which is a better representation of molecules with all bond lengths at their equilibrium separation? And which is better when one or more bond lengths are stretched near their dissociation limit? Explain.
In: Chemistry
For each of the following, would a score of X = 85 be considered a central score (near the middle of the distribution) or an extreme score (far out in the tail of the distribution)? µ =75 and σ = 15 µ =80 and σ = 2 µ =90 and σ = 20 µ =93 and σ = 3
In: Statistics and Probability
What are the main characteristics of born global firms? Evaluate the drivers of market globalization that have allowed born global firms such as Instagram to internationalize at, or near, their founding. What advantages do you think a young company can gain by entering international markets soon after their founding?
In: Economics