Why is it important to adopt a cost-effective risk management controls
controls
In: Economics
A company is considering the purchase of a large stamping machine that will cost $145,000, plus $6,300 transportation and $11,700 installation charges. It is estimated that, at the end of five years, the market value of the machine will be $48,000. The IRS has established that this machine will fall under a three-year MACRS class life category. The justifications for the machine include $34,000 savings per year in labor and $44,000 savings per year in reduced materials. The before-tax MARR is 20% per year, and the effective income tax rate is 40%. What is the after-tax equivalent annual worth of this investment over the five year period which ends with the sale of the machine? (Do not enter a dollar sign $ with your answer.)
In: Economics
The cost of a typical basket of consumer goods is shown below for six ( 6 ) years. Year Cost of Basket Year Cost of Basket 1 $ 175 4 $ 211 2 $ 183 5 $ 225 3 $ 193 6 $ 236 Required: Calculate the following: 1. The CPI for each year, and the rate of inflation for years 2, 3, 4, 5 and 6. In doing this students with the last name starting with, A to C will use Year 6 as the base year, D to G will use Year 5, H to L will use Year 4, M will use Year 3, N to R will use Year 2, and S to Z will use Year 1. Both the CPI values and inflation rates must be stated to one decimal place. Please use year 6 as base year. thanks.
In: Economics
A manufacturer of car transmissions wants to develop a cost
estimate for a customer’s order for 25 transmissions. It is
estimated that the first transmission will take 100 hours of shop
time and an 80% learning curve is expected. Using the learning
curve tables:-
a. How many labour-hours should the 25th transmission require? [5
marks] b. How many labour-hours should the whole order for 25
transmission require? [5 marks] c. If the labour hour rate is $50
per hour and the pricing policy of the company is to double the
labour costs of the order, what is the customer price for each
transmission? [6 marks] d. Total Quality Management (TQM) can be an
excellent quality management technique if properly implemented.
Discuss the obstacles associated with the implementation of TQM. [9
marks]
In: Operations Management
for chipotle Reflect on the "cost" in packaging waste of one week's meal. As part of your reflection ask some questions which weigh the costs versus the benefits of the packaging waste.
The goals of doing this assignment early in the semester is to give us something to think about as the semester progresses.
In: Economics
what are the implicit and explicit cost associated with introducing a new product ? what is the total cost associated with this venture and what happens to this cost in short and long run production?
In: Economics
how to calculate the cost of death for a country please explain with an example clearly
In: Economics
A company is considering the purchase of a large stamping machine that will cost $185,000, plus $4,700 transportation and $9,300 installation charges. It is estimated that, at the end of five years, the market value of the machine will be $32,000. The IRS has established that this machine will fall under a three-year MACRS class life category. The justifications for the machine include $26,000 savings per year in labor and $36,000 savings per year in reduced materials. The before-tax MARR is 20% per year, and the effective income tax rate is 40%. What is the after-tax equivalent annual worth of this investment over the five year period which ends with the sale of the machine? (Do not enter a dollar sign $ with your answer.)
In: Economics
How can opportunity cost affect a college student? Give examples.
In: Economics
Part A
A new project has an initial cost of $142,000. The equipment will be depreciated on a straight-line basis to a book value of $45,000 at the end of the four-year life of the project. The projected net income each year is $14,300, $17,600, $22,400, and $14,200, respectively. What is the average accounting return?
Part B
You are evaluating two projects with the following cash
flows:
| Year | Project X | Project Y | |||
| 0 | −$540,600 | −$511,000 | |||
| 1 | 219,700 | 209,400 | |||
| 2 | 229,600 | 219,200 | |||
| 3 | 236,800 | 227,100 | |||
| 4 | 196,500 | 187,900 | |||
What is the crossover rate for these two projects?
Part C
A project has the following cash flows :
| Year | Cash Flows | |
| 0 | −$12,300 | |
| 1 | 5,470 | |
| 2 | 7,900 | |
| 3 | 5,280 | |
| 4 | −1,520 | |
Assuming the appropriate interest rate is 9 percent, what is the
MIRR for this project using the discounting approach?
In: Finance