Average Rate of Return-Cost Savings Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $90,000 with a $8,000 residual value and a ten-year life. The equipment will replace one employee who has an average wage of $15,980 per year. In addition, the equipment will have operating and energy costs of $4,350 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. %
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A: Computation of annual depreciation:
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A: Discount factor = Initial investment / Annual savings = $58880/8000 = 7.3600
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A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…
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Q: Average Rate of Return—Cost Savings Midwest Fabricators Inc. is considering an investment in…
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Q: Average Rate of Return-Cost Savings Maui Fabricators Inc. is considering an investment in equipment…
A: calculation of average rte of return are as follows
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A: MARR = 20% Cash Flows: Year Cash Flow 1 -25000.00 2 8000.00 3 8000.00 4 8000.00 5…
Q: Average rate of return - cost savings Maui Fabricators Inc. is considering an investment in…
A: The average annual amount of cash flow created over the life of an investment is known as the…
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A: The different alternatives are compared on the basis of benefits provided by various alternatives.
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A: a) The point at which NPV is zero gives annual savings. Computation:
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Q: Average Rate of Return-Cost Savings Maui Fabricators Inc. is considering an investment in equipment…
A: Average rate of return on the project means how much net income a business is earning annually on…
Q: Average Rate of Return-Cost Savings Maui Fabricators Inc. is considering an investment in equipment…
A:
Q: Average Rate of Return-Cost Savings Midwest Fabricators Inc. is considering an investment in…
A: Hence, $9,100 is the amount of annual depreciation on equipment. It is obtained by the division of…
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A: IRR is given by, PV of cash inflows = initial cost PV = E(1-(1+r)-p)/r Where, E = annual cashflow…
Q: Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor.…
A: Annual depreciation = (Cost of equipment + residual value)/2 = ($92,000 - $8,000)/10 = $8,400…
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A: a) Average annual rate of return = Average Annual Earning per year / Investment value
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A: The question is based on the concept of Financial Management.
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A: At the IRR rate, the Initial investment will be equal to the present value of all the cashflows…
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A: Formula: Net income = Revenues - expenses.
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- SEARCH ASK CHAT MATH SOLVER BUY Cornerstones of Cost Management (Cornerstones Series) 4th Edition ISBN: 9781305970663 Author: Don R. Hansen, Maryanne M. Mowen Publisher: Cengage Learning bookmark_border expand_more Chapter 8 : Budgeting For Planning And Control expand_more Section: Chapter Questions format_list_bulleted Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead... See similar textbooks Concept explainers Question The following has been extracted from the financial records of ATF Limited: Annual budgeted capacity of the plant 40,000 units Production during the year 35,000 units Opening finished goods stock 3,000 units Closing finished…Relevant Cost Analysis—Conversion to JIT; Spreadsheet Application As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time(JIT) production methods. Managers of the company have an intuitive feel regarding the financialbenefits associated with a change to JIT, but they would like to have some data to inform their decision making in this regard. You are provided with the following data:[LO 17-5][LO 17-1, 17-5]Item Existing Situation After Adopting JITManufacturing Costs as Percentage of Sales:Product-level support 12% 5%Variable manufacturing overhead 28 10Direct materials 30 20Direct manufacturing labor 22 15Other Financial Data:Sales revenue $1,350,000 $1,650,000Inventory of WIP 180,000 30,000Other Data:Manufacturing cycle time 60 days 30 daysInventory financing costs (per annum) 10% 10%Final PDF to printerblo17029_ch17_713-774.indd 760 02/19/18 09:10 AM760 Part Three Operational-Level ControlRequired1. As the management…Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics. Need Assistance with Req C2, Req C3, Req C4
- Complete the following homework scenario:Compare the results of the three methods by quality of information for decision making. Using what you have learned about the three methods, identify the best project by the criteria of long term increase in value. (You do not need to do further research.) Convey your understanding of the Time Value of Money principles used or not used in the three methods. Review the video titled "NPV, IRR, MIRR for Mac and PC Excel" (located at and previously listed in Week 4) to help you understand the foundational concepts:Scenario Information:Assume that two gas stations are for sale with the following cash flows: CF1 is the Cash Flow in the first year, and CF2 is the Cash Flow in the second year. This is the timeline and data used in calculating the Payback Period, Net Present Value, and Internal Rate of Return. The calculations are done for you. Your task is to select the best project and explain your decision. The methods are presented and the decision…Complete the following homework scenario:Compare the results of the three methods by quality of information for decision making. Using what you have learned about the three methods, identify the best project by the criteria of long term increase in value. (You do not need to do further research.) Convey your understanding of the Time Value of Money principles used or not used in the three methods. Review the video titled "NPV, IRR, MIRR for Mac and PC Excel" (located at and previously listed in Week 4) to help you understand the foundational concepts:Scenario Information:Assume that two gas stations are for sale with the following cash flows: CF1 is the Cash Flow in the first year, and CF2 is the Cash Flow in the second year. This is the timeline and data used in calculating the Payback Period, Net Present Value, and Internal Rate of Return. The calculations are done for you. Your task is to select the best project and explain your decision. The methods are presented and the decision…Complete the following homework scenario:Compare the results of the three methods by quality of information for decision making. Using what you have learned about the three methods, identify the best project by the criteria of long term increase in value. (You do not need to do further research.) Convey your understanding of the Time Value of Money principles used or not used in the three methods. Review the video titled "NPV, IRR, MIRR for Mac and PC Excel" (located at and previously listed in Week 4) to help you understand the foundational concepts:Scenario Information:Assume that two gas stations are for sale with the following cash flows: CF1 is the Cash Flow in the first year, and CF2 is the Cash Flow in the second year. This is the timeline and data used in calculating the Payback Period, Net Present Value, and Internal Rate of Return. The calculations are done for you. Your task is to select the best project and explain your decision. The methods are presented and the decision…
- Customer Value, Strategic PositioningAdriana Alvarado has decided to purchase a personal computer. She hasnarrowed the choices to two: Drantex (ad Confiar. Both brands have thesame processing speed, 6.4 gigabytes of hard-disk capacity, two USBports, and a DVDRW drive, and each comes with the same basic softwaresupport package. Both come from mail-order companies with goodreputations. The selling price for each is identical. After some review,Adriana discovers that the cost of operating and maintaining Drantexover a 3-year period is estimated to be $300. For Confiar, the operatingand maintenance cost is $600. The sales agent for Drantex emphasizedthe lower operating and maintenance costs. The agent for Confiar,however, emphasized the service reputation of the product and thefaster delivery time (Confiar can be purchased and delivered 1 weeksooner than Drantex). Based on all the information, Adriana has decidedto bur Confiar. Required:1. What is the total product purchased by Adriana?2.…F Mathematics In The Modern WorldNote: If you have already answered the problems in this post, kindly ignore it. If not, then answer it. Thank you, Tutor!Content Covered:- Engineering Economics- Simple Interest, Compound Interest, Annuity, Financial Mathematics & Comparison of AlternativesDirections:Solve the problem below by showing the complete solution. In return, I will give you a good rating. Thank you so much!Note: Please be careful with the calculations in the problem. Kindly double check the solution and answer if there is a deficiency. And also, box the final answer.Thank you so much!BE5.5 - Using Excel to Evaluate a Make-Versus-Buy Decision Student Work Area PROBLEM Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. Grunar Industries produces the component parts needed for its popular non-commercial-use drones. One of the key parts has become more costly to produce than first planned, however, so management is considering outsourcing that part. If the company decides not to manufacture this part, a portion of its fixed manufacturing overhead costs would continue. The costs to produce one such part internally and to purchase on part from the suppler are given here. Complete the schedule to support the decision of whether to make or buy the part. Relevant Costs to Make Relevant Cost to Buy Costs to produce internally…
- I need this( https://www.chegg.com/homework-help/top-quality-appliance-long-beach-purchased-franchise-top-qua-chapter-9-problem-1cpp-solution-9780134486833-exc ) problem solved for requirment 1 only. I can not apload more than one picture thats why I send half of it from website and other half in picture. Thank you.Engery Cost Savings (Green Computing) The below data represents cost (expenses) and savings for Thom-Pierre Consultants (TPC) for all organizational computer use for 2018 and 2019. TPC implemented a green computer initiative in January 2019. Operating Cost Computer type General Computer Use (2018) Green Computer Use (2019) Savings Notebook Dual Core 17490 9500 Notebook Quad Core 21000 12500 PC Dual Core 34500 21200 PC Core Duo 42000 21450 Servers Core Duo 25000 16550 Servers 4 Core Duo 30000 12450 TotalHello, Please assist w NPV and payback method calculations for following data: Project B completion time probability should be 0.2 for 24mo instead of 0.10 Thanks