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.
| Month | ||||||||
| 1 | 2 | 3 | 4 | |||||
| Throughput time (days) | ? | ? | ? | ? | ||||
| Delivery cycle time (days) | ? | ? | ? | ? | ||||
| Manufacturing cycle efficiency (MCE) | ? | ? | ? | ? | ||||
| Percentage of on-time deliveries | 89 | % | 84 | % | 81 | % | 78 | % |
| Total sales (units) | 3880 | 3714 | 3524 | 3390 | ||||
Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:
| Average per Month (in days) | |||||||||
| 1 | 2 | 3 | 4 | ||||||
| Move time per unit | 0.6 | 0.3 | 0.4 | 0.4 | |||||
| Process time per unit | 2.7 | 2.5 | 2.4 | 2.2 | |||||
| Wait time per order before start of production | 25.0 | 27.4 | 30.0 | 32.5 | |||||
| Queue time per unit | 4.4 | 4.9 | 5.5 | 6.2 | |||||
| Inspection time per unit | 0.7 | 0.9 | 0.9 | 0.7 | |||||
Required:
1-a. Compute the throughput time for each month.
1-b. Compute the delivery cycle time for each month.
1-c. Compute the manufacturing cycle efficiency (MCE) for each month.
2. Evaluate the company’s performance over the last four months.
3-a. 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. 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.
In: Accounting
The following information relates to the Quilt Division of TDS
Corporation for last year:
| Sales | $ | 200,000 | |
| Contribution margin | $ | 90,000 | |
| Net operating income | $ | 65,000 | |
| Average operating assets | $ | 500,000 | |
| Minimum required rate of return | 10 | % | |
Assume that Quilt was being evaluated solely on the basis of
residual income. Which of the following investment opportunities
would Quilt want to invest in?
| An investment that generates a return of 12% | An investment that generates a return of 16% | |||||
| A) | Yes | Yes | ||||
| B) | No | Yes | ||||
| C) | Yes | No | ||||
| D) | No | No | ||||
Option A
Option C
Option D
Option B
In: Accounting
An investor invests $500. The investment pays $100 at the end of year 2, $200 at the end of year 3 and $300 at the end of year 4.
Calculate the net present value (NPV) of the investment using interest preference rate of 5.7%.
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I got
v = 1/1.12
So would it just be NPV = -500 + 100(v)^2 + 200v^3 + 300v^4?
In: Finance
Ausel’s is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project, the fixed assets can be sold for 15 percent of their original cost. The project is expected to generate annual sales of $928,000 and costs of $721,000. The tax rate is 35 percent and the required rate of return is 14.6 percent. What is the net present value of the project?
In: Finance
An investment costs $2,921 today and provides cash flows at the end of each year for 21 years. The investments expected return is 8.5%. The projected cash flows for Years 1, 2, and 3 are $101, $277, and $372, respectively. What is the annual cash flow received for each of Years 4 through 21 (i.e., 18 years)? Assume the same payment for each of these years. (Round answer to 2 decimal places. Do not round intermediate calculations).
In: Finance
Project A is as follows: $100,000 upfront cost and annual cash flows of $25,000 a year for seven years.
Project B is as follows: $100,000 upfront cost and cash flow of $20,000 per year for 8 years.
Project A Payback Period is 4 years and Project B is 5 years.
using that data calculate NPV for projects A and B using a 10% discount rate.
which project do you pick if they are mutually exclusive? Which do you pick if they are independent and the company has enough funds to do all projects?
In: Finance
PLEASE ANSWER IN EXCEL!
The Ajax Co. just decided to save $15,000 a year for the next five years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pays 3.25% interest. It deposits the first $15,000 today. How much would the company end up with, in this saving account, at the end of the 5 year? The Ajax Co. just decided to save $15000 a year for the next five years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pays 3.25% interest. It deposits the first $15000 today. How much would the company end up with, in this saving account, at the end of the 5 year?
In: Finance
You have an opportunity to invest $102000 now in return for $80200 in one year and $29400 in two years. If your cost of capital is 9.1% , what is the NPV of this investment?
In: Finance
A 7-year project is expected to provide annual sales of $153,000 with costs of $89,000. The equipment necessary for the project will cost $275,000 and will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/-10 percent. The tax rate is 40 percent. What is the annual operating cash flow for the worst-case scenario? a)50994 b)39594 c)68634 d)23880 e)31634
In: Finance
One year, the mean age of an inmate on death row was 40.5 years. A sociologist wondered whether the mean age of a death-row inmate has changed since then. She randomly selects 32 death-row inmates and finds that their mean age is 39.9, with a standard deviation of 8.9. Construct a 95% confidence interval about the mean age. What does the interval imply?
LOADING... Click the icon to view the table of critical t-values.
Choose the correct hypotheses. Upper H 0: ▼ ▼ nothing Upper H 1: ▼ sigma mu x overbar p ▼ less than greater than equals not equals nothing (Type integers or decimals. Do not round.)
Construct a 95% confidence interval about the mean age. With 95% confidence, the mean age of a death row inmate is between ? years and ?g years. (Round to two decimal places as needed.)
What does the interval imply? A. Since the mean age from the earlier year is not contained in the interval, there is not sufficient evidence to conclude that the mean age had changed. B. Since the mean age from the earlier year is contained in the interval, there is sufficient evidence to conclude that the mean age had changed. C. Since the mean age from the earlier year is contained in the interval, there is not sufficient evidence to conclude that the mean age had changed. D. Since the mean age from the earlier year is not contained in the interval, there is sufficient evidence to conclude that the mean age had changed.
In: Statistics and Probability