1 Data Lower control limit 30, upper control limit 33 overall sample mean 31, standard deviation 0 5 Calculate Cpk using z 3 Is the process capable What is the Cpk Yes, 1 33 No, 1 33 Yes, 0 67 No, 0 67 2 A machine costs $102,000 with a projected annual operating and maintenance cost of $10,000 and a salvage value of $36,000 after 3 years If the cash flows are discounted annually at 12 percent what is the NPV A $2,361 C $121,987 B $100,378 D $48,271

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Question: 1. Data: Lower control limit = 30, upper control limit = 33; overall sample mean = 31, standard deviation = 0.5. Calculate Cpk using z=3.

1. Data: Lower control limit = 30, upper control

limit = 33; overall sample mean = 31, standard

deviation = 0.5. Calculate Cpk using z=3. Is the

process capable? What is the Cpk?

Yes, 1.33
No, 1.33
Yes, 0.67
No, 0.67

2. A machine costs $102,000 with a projected annual operating and maintenance cost of $10,000 and a salvage value of $36,000 after 3 years. If the cash flows are discounted annually at 12 percent what is the NPV?

A. $2,361 C. -$121,987

B. -$100,378 D. -$48,271

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