Question: Find the probability distribution and the expected PW to modify and assembly line. The first cost is $80000 and its salvage value is $0. The

Find the probability and the expected PW to modify and assembly line. The first cost is $80000 and its is $0. The firm's interest rate is 9%. The savings shown in the table depend on whether the assembly line runs one, two, or three shifts, and on whether the product is made for 3 or 5 years.

Shifts Savings/ Useful Life day year Probability (years) Probability $15,000 0.3 2 30,000 0.5 3 45,000 0.2 0.6 0.4

Step by Step Solution

★★★★★

3.41 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Since the expected life is not an integer it is easier to use a spreads... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

942-B-A-F-A (3353).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Find the probability distribution and the expected PW to modify an assembly line. The first cost is $80,000, and its salvage value is $0. The firms interest rate is 9%. The savings shown in the table...

Repeat Problem except use the normal distribution for the CFAT in years 7 through 10 with an expected value of $2000 and a standard deviation of $500. Carl, an engineering colleague, estimated net...

General Scooters has decided to replace its old assembly line with a new one that makes extensive use of robots. There are two contractors who would be able to build the new assembly line. General...

Year 0 1 2 3 4 5 EBIT Taxes NOPAT Plus: Depreciation Less: CAPEX Less: Net working capital needs (See Note 1) Plus: Salvage value of the fixed assets in year 5 Firm Free Cash Flow (FFCF) Net Fixed...

Please answer this questions using the following options: Capital Source: Option 4 & 1 Machine : Option 1 Tax Rate : Option 1 Inflation : Option 2 Please use Excel to solve the steps Consider Loan...

For step 1 use option 4 and option 1 For step 3 use option 3 For step 5 use option 1 For step 7 use option 3 Please use excel and demonstrate the excel formulas for the same. A $6M investment is...

For step 1 use option 1, PayBack Plan Method Option 2 For step 3 use option 2 For step 5 use option 2 For step 7 use option 1 Please use excel and demonstrate the excel formulas for the same. A $6M...

How do I solve the Mirr, discounted payback method, after tax salvage, dividend payout ratio, and cash receipts I have the answers I just need to know how to solve these questions the easiest way and...

11. Jeremy Kohn may invest in a 10-year bond that pays a 12 percent coupon semiannually. The current market rate for similar bonds is 8 percent. Jeremy can buy this bond from his uncle for $1,200....

LW Case Study Description A $10M investment is considered by an electric truck manufacturing company to add a new production line for its new product, cybertruck. The company has commissioned an...

Nitrogen gas is expanded in a polytropic process with n 5 1.25 from 2 MPa and 1200 K to 200 kPa in a piston - cylinder device. How much work is produced and heat is transferred during this expansion...

There are 8 employees on The Game Shop's sales team. Last month, they sold a total of g games. One of the sales team members. Chris, sold 17 fewer games than what the team averaged per employee How...

4. A function h is defined by h : x + 5x + 6. Express h 'in a similar form and hence evaluate h-1(6), B)and h (12}). h=(10), h 1

Suppose a state-owned monopoly has been privatised. After privatisation, the problem of regulating the now private sector monopoly rests with a regulator appointed by the government. What guiding...

Selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). InstructionsCompute the...

Here is the income statement for Bachus, Inc. BACHUS, INC. Income Statement For the Year Ended December 31, 2012 Sales .............................$400,000 Cost of goods sold...

Information on Bridgeport Corp., which reports under ASPE, follows: July 1 Bridgeport Corp. sold to Ivanhoe Company merchandise having a sales price of $9,200, terms 2/10, n/60. Ignore cost of goods...

If the tax differential theory of dividend policy is correct, then 1. The stock price will decrease as the retained earnings increase (dividends decrease). 2. The stock price will increase as the...

1.7. Suppose that customers arrive at a facility according to a Poisson process having rate A = 2. Let X(t) be the number of customers that have arrived up to time t. Determine the following...