What will the optimal duration of the downtime in years ? a.None is correct b. 0.076 c. 0.069 d. 0.721 e. 0.065 O f. 0.502

Q: 2. A company can manufacture a product using hand tools. Tools will cost $ 1,000, and the…

A: Here,

Q: Hang Coffee uses high-end coffee roasting machines that cost $30,000 to purchase plus $5,000 per…

A: Initial cost= $30,000Maintenance cost= $5,000Required return= 18%Number of years= 4 years

Q: The monthly demand for ice cans being manufactured by Mr. Cruz is 3,500 pieces. With a manually…

A: Make or buy decision: It is the act of selecting between  making  a product or buy  it from an…

Q: A chemical company produces chemicals for lawn fertilizer. The annual demand for this product, which…

A: Answer : From Given data h = (0.34)* 3.5 = 1.19 unit/year And given that per day production is 10000…

Q: Excel company intends to introduce a new product in the year 2021. The selling price of the product…

A: Required profit per unit = (Investment x return %)/Projected units                = (500,000 x…

Q: A dairy farm is deciding whether to buy a new machine to produce milk lollies. It is expected that…

A: To calculate the accounting rate of return (ARR), payback period, and net present value (NPV) for…

Q: 2. Two equipment are to be evaluated. Equipment A cost P500,000 will last for 20 years and have a…

A: Increment cost is 1.8 times and Incremental production rate is 2 times so Equipment B is more…

Q: For firm needs 1,000,000 barrels of WTI crude oil 6 months from today. You enter into a forward…

A: Contract price refers to the price that is listed in the contract for dealing between the…

Q: A fixture that cost 800 will save P0.07 per item produce. Maintenance will be at 50 annually. 3600…

A: Answer) Calculation of Payback period   Year  Annual Net cash flow Present Value Factor @…

Q: The purchase price of the machine required to produce a certain part is $ 40000, the maintenance…

A: Breakeven point occurs when there is a situation of no profit no loss exists.

Q: Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs…

A: Present value annuity factor is computed as follows:-PVAF = where,, 99, 254); position: relative;…

Q: vour options for shipping Sa00.000 of machine parts from Hamilton to Malaysia, are use a ship that…

A: Daily holding cost = 28 Difference in cost per day shipping cost = 98

Q: company wants to buy a machine with a cash sale price of 750,000 TL. The machine is economical life…

A: Sales price =750000 Scrap value =100000 Annual depreciation =750000-10000/4 Annual depreciation…

Q: The owner of shop is contemplating adding a new product which will require additional monthly…

A: Profit (loss) = Quantity x (selling price per unit – Variable Cost per unit) – Fixed Cost…

Q: The year-end operating costs of a certain machine are estimated to be 120,000 the first year and to…

A: The question is related to equivalents uniform annual costs. Since the cost of maintainance is…

Q: A factory costs $840,000. You estimate that it will produce an inflow after operating costs of…

A: The investment's entire financial benefit or profitability is shown by the net present value. A…

Q: What is the financial break-even quantity?

A: Given information is: Accounting breakeven quantity =  7,440 units Cash breakeven quantity = 6,800…

Q: Champion Bakers uses specialized ovens to bake its bread. One oven costs $1000,000 and lasts about 4…

A: First cost (X) = $1000000 Annual cost (A) = $10000 n = 4 years r = 17%

Q: plant operation has fixed costs of ₱2,000,000 per year, and its output capacity is 100,000…

A:

Q: 1- The company is discussing the construction of a new, automated manufacturing plant. The new plant…

A:

Q: 4. You will need to replace your quadcopter manufacturing system in seven years. You estimate the…

A: Let the no. of quadcopters that will be sold each year be "x". Total profit on each unit  = 550…

Q: use a ship tha truck the part econd option will t holding cost is esti

A: Daily holding cost = 28 Difference in cost per day shipping cost = 98

Q: A farmer in mufulira, copper belt province of Zambia would like to introduce a new product .it has…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: ALUM Inc. uses high-tech equipment to produce specialized products. Each one of its machines costs…

A: Cost of Machine = $2345000Required rate of return = 9.5%Life of the machine = 4 years

Q: Required information A process for producing the mosquito repellant Deet has an initial investment…

A: The question is based on the concept of Cost Accounting. Break even point is the point where there…

Q: Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor,…

A: The present worth of the machine is operating cost is the present value of all future cash outflow

Q: 30 days a month. What is the present value (PV) of the savings if the nominal interest is

A: Present Value is the value of future cash flows at current. As a value increases due to interest,…

Q: ABC  Co wants to manufacture a new product, the GY10. A new machine, with a useful life of four…

A: The difference between the current value of cash inflows and withdrawals over a period of time is…

Q: company is considering the end of the year rental of a copying machine that costs P 1,000 the first…

A: Present value concept means that with the passage of time, value of the amount will decrease due to…

Q: Question 2: An item may be bought for a price of $12 a piece. Making it would require buying a…

A: Financial break even point when net present value is zero and there is no loss and profit situation…

Q: Max's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out.…

A: Cash fixed expense per year is $1500 Depreciation expense is $600 The selling price is $100 The…

Q: A 99 - room hotel's fixed cost is 1 million per year and the variable cost is 40% of revenue. If 75%…

A: Both fixed and variable costs must be taken into account in order to determine the hotel's breakeven…

Q: ch time its market value will be 5% of its purchased cost. The equipment rate an annual receipts…

A: Internal rate of return at which present value of cash flow is equal to initial investment.

Q: Homesaver Ltd believes it can sell 10,000 home smoke detectors per year at Rs30 each. They cost Rs20…

A: NPV concept shall be used for determining the viability of the proposal. NPV is the difference…

Q: 30. KTC Toy Co. is at present spending P400 000.00 annually for the manual operation of its assembly…

A: The comparable uniform yearly value of all expected revenues (income) and disbursements (costs) over…

Q: A process for making a laboratory-grade sodium phosphate will have a first cost of $320,000 with…

A: The payback period is the number of years or months required to cover the initial cost of investment…

Q: Calculate the IRR of the previous project. Justify for what type of discount this investment will be…

A: This is not the follow-up question as the question which of follow up has been solved and there have…

Q: Acme Corporation is going to buy a manufacturing system to produce its shaft couplings over six…

A: To determine which system Acme Corporation should purchase using the internal rate of return (IRR)…

Q: possible annual sales may not exceed $50 lakhs and if there is competition it may fall considerably.…

A:

Q: 9. A company that sells high-purity laboratory chemicals is considering investing in new equipment…

A: An annuity refers to regular cash flows made at equal intervals and of the same amounts. The future…

Q: Required information A process for producing the mosquito repellant Deet has an initial investment…

A: As per the given information:Initial investment - $165,000Annual costs - $43,000Income - $93,000

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.