A plant manager is not sure whether he will get the approval to buy new equipment for automating an engine assembly line now or at some future time within the next three years. In order to have the money whenever he is given the go-ahead, he has asked you to tell him what the equipment is likelyto cost in each of the next three years. The cost of the equipment today is $300,000. How much will it cost at the end of years 1, 2, and 3, if the cost increases only by the inflation rate of 4% per year? Use a market interest rate of 15% per year.

Q: new furnace for your small factory is being installed right now, will cost $33,000, and will be…

A: Furnace should be installed if Net present value of setting up Furnace is positive Net present value…

Q: A civil engineer involved in construction management must decide between two ways to pump concrete…

A: a. When Equipment is purchased Cost of Equipment= $6,000 Operating cost per metric ton=$0.50…

Q: A new furnace for your small factory is being installed right now, will cost $43,000, and will be…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: An oil refinery finds that it is necessary to treat the waste liquids from a new process before…

A: Present Worth of in-house treatment=Present worth of the uniform annuity + present worth of the…

Q: You have been asked by your boss to consider purchasing a new machine to replace an old machine.…

A: Operating cost of old machine is increasing by $5000 straight forward from 2016 to 2021 As per…

Q: A flour mill is considering buying a new jumbo sifter, which would have an installed cost of…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: A new furnace for your small factory is being installed right now, will cost $46,000, and will be…

A: Equivalent Annual Cost(EAC) is cost of an investment proposal that is spread over its useful life…

Q: The heat loss through the exterior walls of a processing plant is estimated to cost the owner $3,000…

A: Rate of return is the annual income from an investment expressed as a proportion of the original…

Q: Be-low Mining, Inc., is trying to decide whether it should purchase or lease new earthmoving…

A: Formula to make the decision of buy or lease is as follows: P = F(P/F, i, n) P = A(P/A, i, n)

Q: The following project takes place over a 20 year period of time. Suppose that an electric motor…

A: Capital budgeting is a cost accounting process that identifies an investment's profitability and…

Q: A company is considering replacing a machine (defender) that was bought six years ago for $50,000…

A: Maximum amount that company should invest for repair on existing machine = Initial investment -…

Q: The plant engineer of a major food processing corporation is evaluating alternatives to supply…

A:

Q: A company is considering establishing a new machine to automate a meat packing process. The machine…

A: Net annual savings = Savings in labor costs - annual maintenance cost  = $50,000 - 9000 = $41,000

Q: Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board…

A:

Q: Required information A plant manager is not sure whether he will get the approval to buy new…

A: Future cost of equipment will be calculated by future value formula where, the present value is…

Q: A new furnace for your small factory is being installed right now, will cost $46,000, and will be…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Superfiber Insulation, Inc., has told you, the plant engineer, that he can reduce the heat loss by…

A: The given problem can be solved using NPV function in excel.

Q: A company needs to have a working machine during each of the next six years. Currently, it has a new…

A: Three scenario shall be considered in order to compute the profit:Scenario 1:Use and dispose in 1…

Q: Your firm bought a new sanding machine for its factory floor two years ago for $40,000. The current…

A: The salvage value is defined as an asset in which results in exchange or selling of an asset at the…

Q: A businessman bought a used building and found that the roof insulation was insufficient. He…

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: Kent Duncan is exploring the possibility of opening a self-service car wash and operating it for the…

A: The net present value is the present value of total cash inflow after deducting all the cash…

Q: A flour mill is considering buying a new jumbo sifter, which would have an installed cost of…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: A firm is considering replacing the existing industrial air conditioning unit. They will pick one of…

A: The equivalent annual cost is the equivalent amount of cost a company has to bear each year, it is…

Q: a company must buy new safety equipment every 8 years, costing $16,000, with a salvage value of…

A:

Q: Kent Duncan is exploring the possibility of opening a self-service car wash and operating it for the…

A: For the purpose of NPV, we need to calculated Annual Cash inflow

Q: The heat loss through the exterior walls of a processing plant is estimated to cost the owner $3,000…

A: A n arithmetic gradient cash flow is a cash flow which either increases or decreases period by…

Q: a) What is the accumulated depreciation of the old sifter? b) What is the current book value of the…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: A firm is considering replacing the existing industrial air conditioning unit. They will pick one of…

A: Installation Cost= $26,729.00 Years = 7 Years Operation Cost= $5,020.00 Salvage Value= $6,912.00…

Q: Compute on annual cost basis

A: Profit analysis of two investments are done so as to find out which will be a more cost effective…

Q: The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost…

A: Annually $200 is the cost of heat loss   The present value of Gradient, (PG) = (A/G, i%, n) =200…

Q: The owner of a ski resort is considering installing a new ski lift that will cost $900,000. Expenses…

A: Probability No. of days Prob.*Days 0.60 80 48 0.30 100 30 0.10 120 12…

Q: A businessman bought a used building and found that the roof insulation was insufficient. He…

A: To recover the cost is the first priority of every investment. So cost should be equal or less than…

Q: An oil refinery finds that it is necessary to treat the waste liquids from a new process before…

A: Solution- Time =15 years r=12% PW (present worth ) of the in house treatment = present worth of the…

Q: The plant manager asked you to do a cost analysis to determine when currently owned equipment should…

A: The question is based on the concept of replacement analysis.  The replacement analysis is a…

Q: A new furnace for your small factory is being installed right now, will cost $46,000, and will be…

A: Note : As per our guidelines, we can only solve 3 subparts. Please post other subparts separately.

Q: A small company that manufactures vibration isolation platforms is trying to decide whether it…

A: The question is based on the concept of replacement analysis to determine Existing system D can be…

Q: ducer is studying the possibility of installing an irrigation system on his property. He estimates…

A: The present value would be the equivalent value based on interest rate and time period of project…

Q: A small utility company is considering the purchase of a powerdriven post hole digger. The equipment…

A: A break-even point is that level of production volume at which the business earns zero profit. It is…

Q: A new furnace for your small factory is being installed right now, will cost $36,000, and will be…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: A painting company is deciding on 2 options, hire a painter that should be paid P70 for labor cost…

A: Let the total number of units painted during the 3 years period is X

Q: North City must choose between two new snow-removal machines. The SuperBlower has a $70,000 first…

A: Operating costs are those costs which are used to operate a machine. These costs are an important…

Q: A new furnace for your small factory is being installed right now, will cost $44,000, and will be…

A: Initial cost = $44,000 Maintenance = $1,200 Discount rate = 10%

Q: A flour mill is considering buying a new jumbo sifter, which would have an installed cost of…

A: Parts A-D:Excel Spreadsheet:

Q: Garrett Boone, Grouper Enterprises’ vice president of operations, needs to replace an automatic…

A: Calculating the total cash inflow from the new automatic lathe machine. We have,

Q: The plant engineer of a major food processing corporation is evaluating alternatives to supply…

A:

Q: A medium-size consulting engineering firm is trying to decide whether it should remodel its office…

A: given, present value = $38,000 interest rate (r) =10%

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.