Labor cost for set-up is $500/hour. The plant plans on level material use and operates 50 days per year to satisfy an annual demand of 5000 units. Dailty production is projected to be 1000 units and lot size is 700. Annual holding cost per unit is projected to be $25. Calculate the time it takes to setup.

You are evaluating a project for your company. You estimate the sales price to be $580 per unit and sales volume to be 2,800 units in year 1; 3,800 units in year 2; and 2,300 units in year 3. The project has a three-year life. Variable costs amount to $380 per unit and fixed costs are $240,000 per year. The project requires an initial investment of $365,000 in assets which will be depreciated straight-line to zero over the three-year project life. The actual market value of these assets at the end of year 3 is expected to be $58,000. NWC requirements at the beginning of each year will be approximately 25 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 9 percent. What change in NWC occurs at the end of year 1?   Multiple Choice A. $114,550 B. $145,000 C. $333,500 D. $263,465

Sandersen Meat Processors has asked its lead process engineer to evaluate two different types of conveyors for the beef cutting line. Type A has an initial cost of $70,000 and a life of 3 years. Type B has an initial cost of $95,000 and a life expectancy of 6 years. The annual operating cost (AOC) for type A isexpected to be $9000, while the AOC for type B is expected to be $7000. Ifthe salvage values are $5000 and $10,000 for type A and type B, respectively,tabulate the incremental cash flow using their LCM.

You are evaluating a product for your company. You estimate the sales price of product to be $240 per unit and sales volume to be 11,400 units in year 1; 26,400 units in year 2; and 6,400 units in year 3. The project has a 3 year life. Variable costs amount to $165 per unit and fixed costs are $214,000 per year. The project requires an initial investment of $366,000 in assets which will be depreciated straight-line to zero over the 3 year project life. The actual market value of these assets at the end of year 3 is expected to be $54,000. NWC requirements at the beginning of each year will be approximately 13% of the projected sales during the coming year. The tax rate is 21% and the required return on the project is 8%. What will the year 2 free cash flow for this project be? Multiple Choice $1,298,760 $1,644,000 $796,760 $1,420,760

You are evaluating a project for your company. You estimate the sales price to be $380 per unit and sales volume to be 4,800 units in year 1; 5,800 units in year 2; and 4,300 units in year 3. The project has a three-year life. Variable costs amount to $230 per unit and fixed costs are $240,000 per year. The project requires an initial investment of $255,000 in assets which will be depreciated straight-line to zero over the three-year project life. The actual market value of these assets at the end of year 3 is expected to be $48,000. NWC requirements at the beginning of each year will be approximately 13 percent of the projected sales during the coming year. The tax rate is 30 percent and the required return on the project is 9 percent. What is the operating cash flow for the project in year 2? Multiple Choice   $517,500   $381,500   $466,500   $545,000

Use the following for the next 2 questions: A facility is to be built with construction costs of $50 per square foot amortized over 20 years.  Receiving and put-away costs are expected to be $0.02 per box and pick-pack-ship costs are expected to be $0.10 per box.  The facility will have an annual upkeep and maintenance cost of $5 per square foot.   1. If the company constructs a 100,000 square foot facility, what is the monthly fixed cost? - $102.500 - $62,500 - $92,500 - $112,500 - $82,500 - $52,500 - $72,500   2. If demand in April is 30,000 boxes, what is the variable cost in April? (assume the number of boxes received in April equals the number of boxes shipped in April)   - $3,000 - $1,200 - $3,600 - $2,400 - $600 - $4,200

The Engineers in a certain company are considering introducing a new product line. The initial investment required for this project is 250,000 OMR and the annual maintenance costs are expected to be 14,500 OMR. Annual operating costs will be directly proportional to the level of production at 11 OMR per unit, and each unit of product can be sold for 45 OMR. The estimated production output is 3000 unit per year. The MARR is 12% per year and the project has a life of 6 years. The initial investment, maintenance costs and production output are estimated to be within ±30%.   Is this project acceptable from profitability point of view (show your analysis)?  Analyze the sensitivity of AW to changes in each estimate individually (i.e.: make a spider plot). Based on your results rank these input factors from the highest sensitivity to the lowest.  Calculate the breakeven deviations for the estimates and make recommendation either to accept or reject this project.

Please show work

You are evaluating a product for your company. You estimate the sales price of product to be $150 per unit and sales volume to be 10,500 units in year 1; 25,500 units in year 2; and 5,500 units in year 3. The project has a 3 year life. Variable costs amount to $75 per unit and fixed costs are $205,000 per year. The project requires an initial investment of $339,000 in assets which will be depreciated straight-line to zero over the 3 year project life. The actual market value of these assets at the end of year 3 is expected to be $45,000. NWC requirements at the beginning of each year will be approximately 15% of the projected sales during the coming year. The tax rate is 21% and the required return on the project is 12%. What will the year 2 free cash flow for this project be?   Multiple Choice A. $922,655 B. $1,372,655 C. $1,594,500 D. $1,259,655

You are evaluating a product for your company. You estimate the sales price of product to be $150 per unit and sales volume to be 10,500 units in year 1; 25,500 units in year 2; and 5,500 units in year 3. The project has a 3 year life. Variable costs amount to $75 per unit and fixed costs are $205,000 per year. The project requires an initial investment of $339,000 in assets which will be depreciated straight-line to zero over the 3 year project life. The actual market value of these assets at the end of year 3 is expected to be $45,000. NWC requirements at the beginning of each year will be approximately 15% of the projected sales during the coming year. The tax rate is 21% and the required return on the project is 12%. What will the year 2 free cash flow for this project be?