Question 5 You own a furniture manufacturing company. You are looking to expand into glass furniture and need to buy new manufacturing equipment to manufacture this type of furniture. You have researched many suppliers but have found that two machines will best suit your needs. The cost of machine 1 is $90,000, and the cost of machine 2 is $110,000. The estimated net profits the machines will generate are in the following table:Net Profit Machine 1 (cost $90,000) Machine 2 (cost $110,000)Year 1 $20,000 $10,000Year 2 $30,000 $20,000Year 3 $40,000 $40,000Year 4 $20,000 $60,000Year 5 $20,000 $50,000Total $130,000 $180,000 a) Compare the ARR for both machines and decide which machine you should buy. b) Critically evaluate the ARR technique in evaluating investment options.

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Question 42: Suppose that JVC is trying to decide how to price a new stereo system composed of a receive CD player, and speakers. The company's economists have estimated that three different groups will purchase these products: students, restaurant owners and club owners. The cconomists analysis suggests that the total market for its brand of stereos consists of 100 students, 150 restaurant owners, and 25 club owners. In addition, it is estimated that the maximum amount each group will pay for each stereo component is as follows: Group CD Player Speakers Receiver Students $100 $200 $125 Restaurant $200 $100 $250 owners Club owners $250 $75 $300 What is JVC's maximum revenue if it uses a commodity-bundle strategy such that the receiver, CD player, and speakers are sold as one item? Answer: Maximum revenue = Instructions: Enter your response rounded to the nearest whole number. Write down the intermediate steps on the exam sheet for partial credit.

Required Information [The following information applies to the questions displayed below.] UR Safe Systems Installs home security systems. Two of its systems, the ICU 100 and the ICU 900, have these characteristics: Design Specifications Video cameras Video monitors Motion detectors Floodlights Alarms Wiring Installation 1,050 feet 21 hour The ICU 100 sells for $860 Installed, and the ICU 900 sells for $1,570 Installed. 1. Current profit margin 2. ICU 100 2 2 3 1 5 650 feet 11 hour Required: 1. What are the current gross profit margin percentages on both systems? 2. UR Safe's management believes that it must drop the price on the ICU 100 to $800 and on the ICU 900 to $1,440 to remain competitive in the market. Recalculate gross profit margin percentages for both products at these price levels and then compute the target cost needed for each product to maintain the current gross profit margin percentages. Profit margin Target cost (For all requirements, round your percentage answers to…

As CEO of SeaSpray Marine, Rachel Souve knows it is important to control costs and to respond quickly to changes in the highly competitive boat-building industry. When IDG Consulting proposes that SeaSpray Marine invest in an ERP system, she forms a team to evaluate the proposal: the plant engineer, the plant foreman, the systems specialist, the human resources director, the marketing director, and the management accountant. A month later, management accountant Mike Chumura reports that the team and IDG estimate that if SeaSpray Marine implements the ERP system, it will incur the following costs: i (Click the icon to view SeaSpray's anticipated project costs.) The team estimates that the ERP system should provide several benefits: i (Click the icon to view SeaSpray's anticipated project benefits.) Read the requirements. Requirement 1. If the ERP installation succeeds, what is the dollar amount of the benefits? If the ERP installation succeeds, the dollar amount of the benefits is…

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