A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash
Question:
A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 million units). Which one should be selected on the basis of a present worth analysis at 10% peryear?
Transcribed Image Text:
In-house Contract -30 First cost, S Annual cost, $ per year Annual income, S per year Salvage value, S Life, years 14 3.1
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 42% (14 reviews)
PW Inhouse 30 14 5PA 10 5 2PF 10 5 30 ...View the full answer
Answered By
John Kago
Am a processional practicing accountant with 5 years experience in practice, I also happens to have hands on experience in economic analysis and statistical research for 3 years. am well conversant with Accounting packages, sage, pastel, quick books, hansa world, etc, I have real work experience with Strata, and SPSS
4.70+
31+ Reviews
77+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
A company that manufactures recreational pedal boats has approached Mike Cichanowski to ask if he would be interested in using Current Designs rotomold expertise and equipment to produce some of the...
-
A company that manufactures amplified pressure transducers wishes to decide between the machines shownvariable speed (VS) and dual speed (DS). Compare them on the basis of rate of return and...
-
A company that manufactures air-operated drain valve assemblies budgeted $74,000 per year to pay for plastic components over a 5-year period. If the company spent only $42,000 in year 1, what uniform...
-
Evaluating these 3 bonds: Face value Coupon rate Maturity year A 1000 8% 5 B 1000 6% 10 C 1000 0% 10 Suppose the yield curve is flat at 7% for all maturities. Use annual compounding in this problem....
-
Show that (a) sinh(z + i) = sinh z; (b) cosh(z + i) = cosh z; (c) tanh(z + i) = tanh z.
-
1. Anton and Beatrice are brother and sister in their twenties, living in the family home which, together with its contents, is owned by their father, Robert. Since Anton and Beatrice can remember,...
-
Describe the conditions of an insurance policy.
-
1. Based on the information in this case, provide examples, for Siemens, of at least four strategically required organizational outcomes, and four required workforce competencies and behaviors. 2....
-
1. Julia saves $38 at the end of each week and deposits the money in an account paying 7% compounded monthly. How much will Julia accumulate in 6 years? How much of the accumulated amount is...
-
A 2.5-cm-OD, 2-cm-ID copper pipe carriers liquid oxygen to the storage site of a space shuttle at ??183?C and 0.04 m3/min. The ambient air is at 21?C and has a dew point of 10?C. How much insulation...
-
What two approaches can be used to satisfy the equal-service requirement?
-
The manager of a canned food processing plant must decide between two different labeling machines. Machine A will have a first cost of $42,000, an annual operating cost of $28,000, and a service life...
-
Describe the six important cultural areas that international managers have to deal with in doing cross-border business.
-
An executive pursuing transformational change would give highest priority to which one of these change targets? (a) An out-of-date policy (b) The organizational culture (c) A new information system...
-
Cost efficiency and product quality are two examples of ____________ objectives of organizations. (a) official (b) operating (c) informal (d) institutional
-
When one team member advises another team member that your behaviour is crossing the line in terms of our expectations for workplace civility, she is exercising a form of________ control over the...
-
What is the difference between focus and differentiation as competitive strategies?
-
When an automobile manufacturer is careful to purchase only the highest-quality components for use in production, this is an example of an attempt to ensure high performance through________ control....
-
How does quality assurance serve as a link between quality planning and quality control?
-
g(x) = x 5 5x 6 a. Show that g(x) = 0 has a root, , between x = 1 and x = 2. b. Show that the equation g(x) = 0 can be written as x = (px + q) 1/r , where p, q and r are integers to be found. The...
-
What does price elasticity of demand and supply measure? Identify factors that affect these price elasticities and give examples of each.
-
A small textile plant was constructed in 2004. The major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2014 if the index for this type of equipment has...
-
A car rental agency is considering a modification in its oil change procedure. Currently, it uses a Type X filter, which costs $5 and must be changed every 7,000 miles along with the oil (5 quarts)....
-
A foreman supervises A, B, and eight other employees. The foreman states that he spends twice as much time supervising A and half as much time supervising B, compared with the average time spent...
-
A pilot taxiing on the airport loses radio contact with ATC and then sees a flashing red light being shown at his aircraft from the Air Traffic Control Tower. What action should the pilot take?
-
Discussion questions: It is better to be a human being dissatisfied than a pig satisfied; better to be Socrates dissatisfied than a fool satisfied. 1. Do you agree? Why (not)? 2. What would a...
-
Describe how to make a strong magnet out of an initially unmagnetized iron rod without using the earth or another bar magnet. Include in your instructions the materials one would need, how one could...
Study smarter with the SolutionInn App