1. Should SS upgrade its production line or replace it? Show your calculations 2. Suppose the one-time equipment cost to replace the production equipment is negotiable. All other data are as given previously. What is the maximum one-time equipment cost that SS would be willing to pay to replace the old equipment rather than upgrade it?

If, for competitive reasons, Washburn eventually has to move all its product ion back to Asia, (a) which specific fixed and variable costs might be lowered and (b) what additional fixed and variable costs might it expect to incur?

Assuming that all other factors remain unchanged, determine how a firm’s breakeven point is affected by each of the following: a. The firm finds it necessary to reduce the price per unit because of increased foreign competition. b. The firm’s direct labor costs are increased as the result of a new labor contract. c. The Occupational Safety and Health Administration (OSHA) requires the firm to install new ventilating equipment in its plant. (Assume that this action has no effect on worker productivity.)

REQUIRED Use the information provided below to answer the following questions:   3.1. Calculate the Payback period for the HMC.   3.2. Calculate the Net Present Value for both the HMC and VMC.   3.3. Calculate the Internal Rate of Return (IRR) for the HMC and VMC.   3.4. Which configuration of the CNC machining centres should SMT purchase, if any? Motivate your answer by referring to the answers obtained in questions 3.3 and 3.4.   INFORMATION Southern Manufacturing Tools Limited (SMT) is considering the purchase of a Computer Numerical Control (CNC) machining centre for its operations. Two configurations of the CNC machining centres are available: horizontal CNC machining centre (HMC) and vertical CNC machining centre (VMC). Both the HMC and VMC will require an initial investment of R10 000 000, will have a useful life of 7 years and a residual value of R1 500 000. SMT uses the straight-line method of depreciation. The expected net cash inflows of the VMC are expected to be R2 100 000…

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I also have some confuse for the decision: system B is more beneficial then system A due to lower negative NPV from system A.  Should we need compare with negative NPV or cost per year? For negative NPV, system A ($541,843)is lower negative NPV than system B($706,984.82). On the other hand, system B ($167,116.14) is lower cost of each year than system A ($174,652.85). Thank you ~

please help me, thank you

When evaluating if a company should accept a new contract to produce more    product it should:  Evaluate all possible fixed cost of accepting the contract. Evaluate the propose contract using a contribution margin approach. Accept the new contract if the sales price for the product is equal to or higher than the current sale price. Accept the new contract if fixed costs will remain the same.

The purchase or construction of specialized equipment such as a nuclear power plant is considered O none of these answers is correct an average cost O a non recoverable cost O a marginal cost O a recoverable cost

Which of the following is not considered a capital investment? 18 Multiple Cholce Ask The development of a new product line. The purchase of a large machine. The acquisition of a subsidlary company. The purchase of a large order of raw materlals used In the production process.