Downtown Abbey Corp. wants to buy a new sheep-shearing machine. It has narrowed down the choice to two machines that can do the job equally well: Machine name The Shearilizer Naked Sheep Purchase price 10,000 20,000 Useful life (years) 4 7 Maintenance cost (end of each year) 4,000 3,000 The relevant discount rate is 10%. There are no taxes. What is the net present value of all costs associated with the Shearilizer (in absolute terms)? What is the equivalent annual annuity for the Shearilizer (in absolute terms)? What is the equivalent annual annuity for the Naked Sheep (in absolute terms)? Which machine should the company buy? The one with the higher equivalent annual cost The one with the lower equivalent annual cost

You saw a product sells for $140 on the price tag and costs $100, the Mark-up (%) for this product is ______ (%).      1.4     4     400     40

You are in the train station waiting for your train to arrive. You see a vending machine from where youcan buy snacks and chips for $3.50. Posted on the machine is a sign saying: “Property of XYZVendsolutions Pty Ltd”. You insert the coins required into the machine and out comes a packet ofchips. However, when you open the packet of chips, you find bits of plastic inside and you don’t wantto eat the chips. You want your money back.   With reference to the essential elements for the formation of a contract, explain:a) Did you enter into a contract in this scenario?words)b) If your answer is yes, with whom did you enter a contract?

In a manufacturing casting factory, a new machine is needed for casting machines. There are two types of machines on the market that will do the same job. The information is as follows.Machine A machine BSavings to be achieved 370,000 370,000Buying prices 125.000 167.000Scrap values 25,000 35,000Annual operating expenses 8,900 5,200Annual energy cost 40,000 32,000Engine maintenance 7th year 12,000 7,000Economic life 11 years 11 yearsCapital cost 25% 25% Which machine do you prefer? Note:Solve with Net Present Value Method (Don't use exel please )

Kontrol paneli > Derslerim > 2020-2021 Güz Dönemi > İŞLETME FAKÜLTESİ > İŞLETME > 2021G-ITB101-1252178 > ITB 101 - Final Exam > ITB 10 曲 Kontrol paneli Site ana sayfası Takvim Nişanlar Tüm dersler Course dashboard Soru 17 The Farley Farm, a dairy company, has total costs of $15,000 and total variable costs of $2,000. The Farley Farm's total fixed costs are Henüz cevaplanmadı 4 üzerinden Lütfen birini seçin: işaretlenmiş O A. indeterminate because the firm's output level is not known. P Soruyu işaretle O B. SO O C$ 15000 O D.$ 13000 O E$ 17000 ÖNCEKİ SAYFA SONRAKİ SAYFA O Aramak için buraya yazın

Please see the attached 95

6. Machine A and Machine B are being considered for the production of a part of a product. The impor- tant differences between the machines are: Machine A Machine B 100 parts/hr 130 parts/hr Production rate Hours available for production Rejection rate 7 hrs/day 6 hrs/day 3 % 10 % The material cost is $6.00 per part, the operator cost is $15.00 per hour, and the variable overhead cost is $5.00 per hour. All defect-free parts produced can be sold for $12 each, and the rejected parts have no value. Assume that the daily demand for this part is large enough that all defect-free parts can be sold. Which machine should be selected? • What should the rejection rate be for Machine B to be as profitable as Machine A?

Question 7 A factory is considering partially automating one of its production processes, details can be found in the summary table below (all dollars are constant and have the value of today): Description/Data S 1,500,000 6 years S 500,000 Item Investment Project life Salvage value CCA rate Annual savings 30% S 1,000,000 $ 200,000 per year S 125,000 per year S 75,000 per year Labour Annual expenses Material Overhead Marginal tax rate Real interest rate 40% 16% AJ Ignoring for now any effect of inflation, what's the after-tax NPW ? B] If the general inflation rate during the next 6 year is expected be 4% annually, sales and operating costs are to be increased accordingly. What would be the NPW due to inflation? C] How did the NPW change? Why?

2. A company is planning to install a new automated concrete block making machine. Four different brands are available. The related cost information for these four brands are as follows Initial investment Useful life 5 Brand P1 P2 P3 P4 $24,000 $30,400 $49,600 $52,000 5 5 5 (years) Annual expenses Power $2,720 $2,720 $4,800 $5,040 labor $26,400 $24,000 $16,800 $14,800 Maintenance $1600 $1,800 $2,600 $3,000 Insurance $480 $608 $992 $1040 Percent of nondetective 95% 92% 96% 91% items Assume that each brand has the same capacity 120,000 units per year and has no market value at the end of useful life. Which brand should be selected if all non-defective units can be sold at a selling price of $0.875 per unit by finding Present worth, Annual worth and Future worth? Considering MARR 10 Percent, solve by spreadsheet.

1. What is Income tax? Will this affect the decision analysis of engineering projects? 2. What is inflation? How will this affect the economic analysis of engineering projects?