Dag's frozen pizza has computed the net present value for capital expenditures at two locations. Relevant data are as follows: Bumpy * Transylvania PV of cash flows $712,000 * $848,000 Amount invested _(750,000) * (800,000) Net Present Value $(37,500) * $48,000 Asterisks (*) are used to help align the numbers within the table. Calculate the present value index for each proposal. State which location Dag should invest in (if either one) and what is its present value index? A Invest in Bumpy, PVI = 0.91 B Invest in Transylvania, PVI = 1.06 Invest in neither location, PVI 0.90Chrome zone manufacturers blue jeans. They process thejeans in 40jean batch sizes. The cutting time is 5 minutes perjean and the sewing time is 20 minutes perjean. It takes 2 minutes to move a batch from cutting to sewing. What is the total non value added time in minutes and the value added ratio. respectively? Round the ratio to one decimal place. 975 minutes and 2.5% 1,002 minutes and 1.9% 27 minutes and 2.6% Not a choice. All of the following are features of a Lean Manufacturing system except 6) smaller batch sizes a centralized maintenance location employee involvement decreasing the time to move people and materials In terms of a Quality Control activity, Warranty work is considered to be A an external failure B an internal failure appraisal D preventionIn terms of Quality Control, an internal failure cost is a cost incurred before the product is delivered to a customer. Nonfinancial performance measures emphasized in Lean Manufacturing include the valueadded ratio, number of units scrapped and lead times. Prevention costs include all of the following except A product design B controlling vendor quality maintaining equipment D inspecting products\fThe expected period of time that will elapse between the date of a capital investment and the complete recovery of the amount of cash invested is called the A average rate of return B cash payback period net present value D internal rate of returnThe capital investment analysis method that compares the amount to be invested with the present value ofthe net cash inflows expected is 6) average rate of return cash payback method 6:) net present value internal rate of return The capital investment analysis method that uses present value concepts to impure the rate of return from the net cash ows expected is G) average rate of return cash payback method net present value internal rate of return Your company is considering a $100,000 investment in a project with a fiveyear life and no residual value. if the total income from the project is expected to be $60,000 and straight line depreciation is used, the average rate of return is Capital analysis methods that ignore the time value of money include A cash payback B internal rate of return C average rate of return D Both A and C above