DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

requirement 3

3-a. (Month 5) Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. (Month 6) Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

(Round your answers to 1 decimal place.)

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Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $72,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $31,800.

A new piece of equipment will cost $200,000. It also falls into the five-year category for MACRS depreciation.

Assume the new equipment would provide the following stream of added cost savings for the next six years.

Year Cash Savings

1 $69,000    

2 61,000    

3 59,000    

4 57,000    

5 54,000    

6 43,000    

The firms tax rate is 25 percent and the cost of capital is 12 percent.

e.What is the net cost of the new equipment? (Include the inflow from the sale of the old equipment.) (do not round intermediate calculations and round answer to the nearest whole dollar)  

Net cost$  

f.Determine the depreciation schedule for the new equipment. (round the depreciation base and annual depreciation answers to the nearest whole dollar. round the percentage depreciation factors to 3 decimal places )

Year DepreciationBase   PercentageDepreciation AnnualDepreciation

1   

2

3

4

5

6

$   

g.Determine the depreciation schedule for the remaining years of the old equipment. (round the depreciation base and annual depreciation answers to the nearest whole dollar. round the percentage depreciation factors to 3 decimal places )

Year DepreciationBase PercentageDepreciation AnnualDepreciation

1      

2

3

4

h.Determine the incremental depreciation between the old and new equipment and the related tax shield benefits. (enter the tax rate as a decimal rounded to 2 decimal places. round all other answers to the nearest whole dollar)

Year Depre onNewEquip Depre onoldEquip IncrementalDepre TaxRate  TaxShieldBenefits

1

2          

3          

4          

5        

6        

i.Compute the aftertax benefits of the cost savings. (enter the tax rate as a decimal rounded to 2 decimal places. round all other answers to the nearest whole dollar)

Year. Savings. (1 - Tax Rate) Aftertax Savings

1 $69,000     

2 61,000     

3 59,000     

4 57,000     

5 54,000     

6 43,000     

j-1.Add the depreciation tax shield benefits and the aftertax cost savings to determine the total annual benefits. (Do not round intermediate calculations and round your answer to the nearest whole dollar)

Year TaxShieldBenefits fromDepreciation AftertaxCostSavings Total Annual Benefits

1      

2

3

4

5

6

j-2.Compute the present value of the total annual benefits. (Do not round intermediate calculations and round your answer to the nearest whole dollar)  

Total annual benefits$  

k-1.Compare the present value of the incremental benefits (j) to the net cost of the new equipment (e). (do not round intermediate calculations. negative amount should be indicated by a minus sign. round your answer to the nearest dollar)

  Net present value$  

1. A researcher is interested to learn if there is a linear relationship between the hours in a week spent exercising and a person’s life satisfaction. The researchers collected the following data from a random sample, which included the number of hours spent exercising in a week and a ranking of life satisfaction from 1 to 10 ( 1 being the lowest and 10 the highest). Participant Hours of Exercise Life Satisfaction 1 3 1 2 14 2 3 14 4 4 14 4 5 3 10 6 5 5 7 10 3 8 11 4 9 8 8 10 7 4 11 6 9 12 11 5 13 6 4 14 11 10 15 8 4 16 15 7 17 8 4 18 8 5 19 10 4 20 5 4

a. Find the mean hours of exercise per week by the participants.

b. Find the variance and standard deviation of the hours of exercise per week by the participants.

c. Run a bivariate correlation to determine if there is a linear relationship between the hours of exercise per week and the life satisfaction. Report the results of the test statistic using correct APA formatting. d. Run a linear regression on the data. Report the results, using correct APA formatting. Identify the amount of variation in the life satisfaction ranking that is due to the relationship between the hours of exercise per week and the life satisfaction (Hint: the R2 value) e. Report a model of the linear relationship between the two variables using the regression line formula.

Describe the two-stage process for establishing credit standards.

1. First, the company must establish credit acceptance criteria that represent a maximum amount of payment risk the company is willing to assume.

2. ??

Describe three considerations companies must evaluate when establishing a method of analyzing credit requests.

1. The type of information

2. ??

3. The cost of information

Describe four external sources companies can use to determine the creditworthiness of a credit applicant.

1. ??

2. Trade references, or other companies from whom the applicant has purchased on credit, can provide a secondary source of information about the applicant’s payment performance.

3. Banks or other financial creditors (e.g., commercial finance or leasing companies) can provide standardized credit information about an applicant’s financial condition and available credit.

4.??

Describe the four-step credit scoring process major issuers of retail credit use for consumer credit analysis.

1. Differentiating standard and high-risk accounts based on the applicant’s monthly income, outstanding obligations and employment history

2. Weighting the characteristics of applicants who fit into each category to establish creditworthiness

3. ??

4. Applying further analysis to applicants whose scores fall between the cutoff points

Describe four disadvantages of accepting credit cards for customer financing.

1.??

2. The seller loses promotional opportunities by not having access to a list of credit customers.

3. ??

4.??

Describe four reasons that motivate the holding of inventory.

1. ??

2. As a precautionary measure

3. ??

The table below represents data on a variable of interest collected from two independent groups, in which each group was randomly assigned 10 participants. A researcher is interested in testing whether the two groups have different means.

Group 1 = 4, 4, 2, 6, 3, 5, 6, 1, 5, 4

Group 2 = 6, 10, 4, 7, 8, 5, 9, 10, 6, 7

Please bold answers and show work

a) What are the appropriate hypothesis for this analysis?

b) What is/are the critical value(s) for this tests at a 0.05 alpha level?

c) what is the estimated standard error for this test?

d) What is the observed value of the appropriate test statistic?

e) What is your decision regarding the stated hypothesis?

The General Social Survey asked a sample of adults how many siblings (brothers and sisters) they had (X) and also how many children they had (Y). We show results for those who had no more than 4 children and no more than 4 siblings. Assume that the joint probability mass function is given in the following contingency table:

NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.

Find σ_{X + Y}.

σ_{X + Y} =

Calculate using above information:

1) Net Present Value (NPV)

2) Internal Rate of Return (IRR)

3) Profitability Index (PI)

4) Modified Internal Rate of Return (MIRR)

5) Payback Period (PP)

6) Discounted Payback period (DPP)

The data below give the number of lot-to-lot failures of a plastic-encapsulated resistor to a moisture-resistance test.

1. What type of attribute control chart should be used for process monitoring for this application and why?
2. Set up the control chart with exact limits (state the exact formulas used to compute the control limits). Plot the preliminary data and state which subgroups (samples) are identified as being out of control? What is the major disadvantage of using this type of chart in practice?