A tool and die company is considering the purchase of a drill press with fuzzy-logic software to improve accuracy and reduce tool wear. The company has the opportunity to buy a slightly used machine for $15,000 or new one for $21,000. Because the new machine is a more sophisticated model, its operating cost is expected to be $7000 per year, while the used machine is expected to require $8200 per year. Each machine is expected to have 25 years life with 5% salvage value. Tabulate the incremental cash flow
I've already looked at https://www.chegg.com/homework-help/questions-and-answers/tool-die-company-considering-purchase-drill-press-fuzzy-logic-software-improve-accuracy-re-q28194174 and https://www.chegg.com/homework-help/questions-and-answers/tool-die-company-considering-purchase-drill-press-fuzzy-logic-software-improve-accuracy-re-q28235286 answers just need additional help
In: Economics
Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under consideration. The relevant cash flows associated with each are shown in the following table:
LOADING...
. The firm's cost of capital is
1010%.
a. Calculate the net present value
(NPV)
of each press.
b. Using NPV, evaluate the acceptability of each press.
c. Rank the presses from best to worst using NPV.
d. Calculate the profitability index (PI) for each press.
e. Rank the presses from best to worst using PI
|
Initial investment |
84500 |
60100 |
130400 |
|
Year |
|||
|
1 |
18200 |
12100 |
49900 |
|
2 |
18200 |
13700 |
30200 |
|
3 |
18200 |
15500 |
19800 |
|
4 |
18200 |
18400 |
19500 |
|
5 |
18200 |
19700 |
19800 |
|
6 |
18200 |
24500 |
29800 |
|
7 |
18200 |
0 |
39800 |
|
8 |
18200 |
0 |
50300 |
In: Finance
NPV Mutually exclusive projects ---- Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under consideration. The relevant cash flows associated with each are shown in the following table: The firm's cost of capital is 10%. Calculate the net present value (NPV) of each press.
b. Using NPV, evaluate the acceptability of each press.
c. Rank the presses from best to worst using NPV.
d. Calculate the profitability index (PI) for each press.
e. Rank the presses from best to worst using PI.
Machine 1 2 3
Initial investment
85,000 60,100 129,700
Year
1 18,400 11,600 50,300
2 18,400 14,100 29,900
3 18,400 16,400 20,100
4 18,400 18,200 20,000
5 18,400 20,300 19,900
6 18,400 25,000 29,800
7 18,400 0 39,800
8 18,400 0 49,500
In: Finance
Monetary Policy
FOMC Press Release - 10/30/19
Watch the following video of Federal Reserve Chairman, Jerome Powell, presenting the findings of the last Federal Open Market Committee Meeting on October 30, 2019. You can click on the FOMC Press Conference Video, October 30, 2019, and watch about the first 10 minutes of the overall press conference in the Videos section of the Federal Reserve website.
Federal Reserve Videos (Links to an external site.)
In: Economics
Mutually
exclusive projects Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under consideration. The relevant cash flows associated with each are shown in the following table:
Initial investment $85,500 $59,900 $129,500
Year
1 $17,500 $11,500 $49,900
2 $17,500 $13,600 $29,700
3 $17,500 $16,000 $20,000
4 $17,500 $17,900 $20,100
5 $17,500 $19,500 $20,500
6 $17,500 $25,200 $30,100
7 $17,500 $0 $39,500
8 $17,500 $0 $50,000
The firm's cost of capital is 14%
a. Calculate the net present value (NPV)of each press.
b. Using NPV, evaluate the acceptability of each press.
c. Rank the presses from best to worst using NPV.
d. Calculate the profitability index (PI) for each press.
e. Rank the presses from best to worst using PI.
In: Finance
NPVlong dashMutually exclusive projects Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under consideration. The relevant cash flows associated with each are shown in the following table: LOADING.... The firm's cost of capital is 12%. a. Calculate the net present value (NPV) of each press. b. Using NPV, evaluate the acceptability of each press. c. Rank the presses from best to worst using NPV. d. Calculate the profitability index (PI) for each press. e. Rank the presses from best to worst using PI.
| Initial investment | $85,000 | $59,600 | $129,600 | |
| Year | ||||
| 1 | $18,400 | $12,300 | $50,000 | |
| 2 | $18,400 | $14,500 | $29,800 | |
| 3 | $18,400 | $16,000 | $20,400 | |
| 4 | $18,400 | $17,800 | $19,600 | |
| 5 | $18,400 | $20,200 | $19,800 | |
| 6 | $18,400 | $24,800 | $30,300 | |
| 7 | $18,400 | $0 | $40,100 | |
| 8 | $18,400 | $0 | $50,500 |
In: Finance
NPV—Mutually exclusive projects Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under consideration. The relevant cash flows associated with each are shown in the following table:
The firm's cost of capital is 13%.
Initial investment $84,800
$60,100 $130,300
Year
1 $18,500 $12,300 $50,000
2 $18,500 $13,700 $29,500
3 $18,500 $16,100 $20,500
4 $18,500 $18,300 $20,500
5 $18,500 $20,400 $20,300
6 $18,500 $25,100 $30,000
7 $18,500 $0 $40,000
8 $18,500 $0 $49,900
a. Calculate the net present value (NPV) of each press.
b. Using NPV, evaluate the acceptability of each press.
c. Rank the presses from best to worst using NPV.
d. Calculate the profitability index (PI) for each press.
e. Rank the presses from best to worst using PI.
In: Finance
Clive Palmer treated Queensland Nickel as $200m
Piggy BankClive Palmer is accused of being a reckless, shadow company director who took$200 million out of a Queensland nickel company to fund his political party andinvestments, including a new Titanic.
Administrators of Queensland Nickel, which closed last month, said yesterday thecompany was used as a “piggy bank” to finance what they termed the “Palmerempire”.
More than $200 million was taken out of the company over a five-year period andpumped into companies that were directly related to Mr Palmer, including hisflagship business Mineralogy, FTI Consulting said in its report.
But John Park, from FTI, said his investigations found $189 million in loans tocompanies linked to Mr Palmer were “forgiven” or not paid back to QueenslandNickel, including $5.9 million that went into the plans for the Titanic II.
Of the money that went into the Titanic, most was spent on lavish launch partieswith the only assets now some intellectual property and a “plastic boat”.
The company also became the single biggest political donor in the country,delivering $21.5 million to the Palmer United Party.
The administrators said Queensland Nickel accounted for 27 per cent of thenation’s total political donations in 2014 and last year, including the WA Senateby-election when Palmer United’s Dio Wang was elected.
While money was flowing out of the nickel company into the Palmer CoolumResort and other firms, the world nickel price was falling.
Mr Park said the borrowing from the company could have continued if nickelprices remained high.
“At a very high level, we saw Queensland Nickel as what I’d say (was) the piggybank, the treasury,” Mr Park said.
“And the money was coming through Queensland Nickel in the better times and itwas being dissipated amongst the Palmer empire entities.”
Up to 800 workers are owed $74 million in entitlements.
They are likely to get most of those entitlements paid out under a FederalGovernment program. Remaining creditors will likely get between nothing and 50¢for every dollar owed.
The administrators believe Mr Palmer and his nephew Clive Mensink, QueenslandNickel’s sole director, should be examined by the Australian Securities andInvestments Commission.
They claimed Mr Palmer acted as “shadow director” and that he and Mr Mensinkhad been “reckless in exercising their duties and powers as directors” for takingactions not in the interests of Queensland Nickel.
Mr Palmer is planning to fight any action and argued he was being singled outwhen Prime Minister Malcolm Turnbull was standing by as jobs disappeared in Queensland.
“Despite me controlling a lot of things, being Dr Evil, if you like, I don’t controlthe world’s international nickel price,” he told Melbourne radio.
Mr Palmer said there was a witch-hunt against him for making decisions that hewas entitled to make.
“I mean, that's my money. That's what we live in - a free society, and people havethe right to spend their money as they see fit,” he told the Seven Network.
Mr Palmer is the sole shareholder of Queensland Nickel. His nephew Mr Mensink isthe sole company director. The Administrators believe that Mr Palmer should beexamined by ASIC for breach of s184 of the Corporations Act.
Do you think ASIC would be successful in charging Mr. Palmer for breach of s184of the Corporations Act?
In: Finance
1.) i) In 1987, trader Ivan Boesky was accused of insider trading based on his massive purchases of stock of firms before announcements of acquisitions of those firms. Which of the following is true?
a) This indicates the market is strong-form efficient
b) This indicates the market is at best semi-strong form efficient
c) Insider trading indicates the market is weak-form efficient
d) Insider trading does not indicate anything regarding market efficiency.
ii) If the share price automatically adjusts when there is information that has not been distributed to investors, which of the following types of market efficiency is best evidenced?
a) weak form
b) semi-strong form
c) strong form
d) semi-weak form
iii) Which of the following forms of market efficiency should be least likely in a country which has insider trading laws?
a) strong form market efficiency
b) semi-strong form market efficiency
c) weak form market efficiency
d) semi-weak form market efficiency
In: Accounting
Business Management Case #1 – Volkswagen Scandal
Facts:
Volkswagen, in 2015, was accused of rigging software in its car to defeat emissions tests. This software could detect when testing was occurring and blocked emissions.
EPA investigation confirmed the car’s software gave lower results than EPA allowable maximum – when, in fact, the emissions were 40 times higher than allowable emissions.
After the scandal broke the CEO resigned and 9 top executives were fired.
This software affected 11 million vehicles affected, ½ million in US.
Volkswagen recalled the cars at a cost of $18 billion and paid customers affected another $14 billion.
The company fell to #2 from its previous # 1 slot in Europe.
Questions:
Identify the stakeholders and how they are affected.
Review the five principles of ethics and analyze the case from each of these ethical perspectives (egoism, utilitarianism, rights, duties, virtues) defining what actions you as head of the board of VW would do if you acted according to each principle and why.
Example:
Egoism principle says you will act in your own best interest for the long term—what would you do?
Utilitarianism says you what is best for the most people—what would you do? Etc, etc.
In: Operations Management