If a manufacturer of electronic devices invests $660,000 in equipment for making compact piezoelectric accelerometers for general purpose vibration measurement, estimate the rate of return from revenue of $250,000 per year for 10 years and $86,000 in salvage value from the used equipment sale in year 10. What is the rate of return?

Q: Assuming that you would like to buy an equipment for your small business. Using the information…

A: Internal rate of return is the discount rate where the present value of inflows is equal to the…

Q: You must analyze a potential new product --- a caulking compound that Korry Materials’ R&D…

A: The question is based on the concept of capital budgeting and techniques of capital budgeting. The…

Q: Suppose that you have just completed the mechanical design of an equipment that has an investment…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Matheson Electronics has just developed a new electronic device that it believes will have broad…

A: Net Present Value(NPV) of project shows the excess of present value(PV) of all future flows over…

Q: A design company is evaluating the purchase of automatic tools to automate the design process. The…

A: Computation of discounting factor at the rate of 10% is as follows:

Q: A design firm is considering investing in a software suite that costs $200,000. It estimates that…

A: solution  concept : present worth is calculated as the the present value of inflow less present…

Q: Ivanhoe Corporation is involved in the business of injection molding of plastics, It is considering…

A: Answer) Calculation of Internal rate of return Internal rate of return is the rate at which the…

Q: An engineer is planning to purchase a CHB machine worth 180,000 that can produce a uniform annual…

A: Answer) This problem is based on the Net Present value. If the net Present value of machine is…

Q: San Lucas Corporation is considering investment in robotic machinery based upon the following…

A: Hey, since there are multiple sub-parts posted, we will answer the first three sub-parts. If you…

Q: 3. The Kasibu Cooperative has invested a 145,000 new mechanical grading/sorter system which is…

A: The future worth method of project appraisal includes the calculation of the future value of all…

Q: Paulsen Corporation is involved in the evaluation of a new computer-integrated manufacturing system.…

A: Profitability Index is the ratio of Present value of cash inflows to the Initial cost of the…

Q: Production engineers of a manufacturing firm have proposed a new equipment to increase productivity…

A: Annual revenue = 200,000 Salvage value = 100,000 Initial cost = 500,000 Rate of return = 15% Time…

Q: Blues Bros. Inc. is considering an investment in a computer that is capable of producing various…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: A company is trying to decide whether to buy a machine for $ 80,000 which will saved $20000 a year…

A: The question is based on the concept of capital budgeting and its techniques. Internal rate of…

Q: Raytheon wishes to use an automated environmental chamber in the manufacture of electronic…

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

Q: Allen Bradley claims that its XM1Z1A and XM442 electronic over-speed detection relay modules provide…

A: The formula used as follows: Present worth=AP/A,i,nGP/G,i,nA=Annual paymentn=Number of yearsi=Annual…

Q: The Balas Manufacturing Company is considering buying an overhead pulley system. The new system has…

A: The calculation is: The formula image is:

Q: You must analyze a potential new product—a caulking compound that Cory Materials’ R&D people…

A: A changing diary section includes a pay proclamation account (income or cost) alongside a monetary…

Q: 3D Systems Corporation was assessing between two natural fibers as a reinforcing fiber to ABS…

A:

Q: 1.In a window and door manufacturing company, to justify the viability of a production line…

A: The correct option is  b. $60,000 Please see the next step for the solution

Q: Production engineers of a manufacturing firm have proposed a new equipment to increase productivity…

A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…

Q: Your company has spent $200,000 on research to develop a new computer game. The firm is planning to…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: If GHD Plastics purchases a new building now for $1.3 million for its corporate headquarters, what…

A: Future worth=Principal1+interestnumber of years The standard notation equation is as follows:

Q: You must analyze a potential new product—a caulking compound that Cory Materials’ R&D people…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: Assume you have been asked to evaluate an investment in capital equipment for the production of…

A: The NPV analysis involves the use of discounted after-tax cash flows to determine the profitability…

Q: Pharmos Incorporated is a Pharmaceutical Company which is considering investing in a new production…

A: Calculating Initial Investment,Working capital Requirement,operating cashflow,NPV & IRR

Q: Blossom Company has identified that the cost of a new computer will be $50000, but with the use of…

A: Payback period means the time with in which we will get our investment amount back.

Q: Labco Scientific sells high-purity chemicals to universities, research laboratories, and…

A:

Q: The Emerson Electronics Company just purchased a soldering machine to be used in its assemblycell…

A: Capital recover cost=Machine cost-Salvage valuei1+in1+in-1+Salvage valuei

Q: XYZ Company is looking to invest in some new machinery to replace its current malfunctioning one.…

A: Answer A) Calculation of Payback period Payback period = Initial investment in Machine/ (Annual…

Q: ntrepreneur wants to establish a facility by spending 250 USD in the first year, 300 USD in the…

A: The amount of investment would be the present value of the future funds.

Q: The ABC Corporation is considering purchasing a machine to manufacture mobile phones. The purchase…

A: The operating income is calculated after tax for the purpose of calculating the present value of a…

Q: company in Hànover is considering the purchase of a drill press with fuzzy-logic software to improve…

A: The decision of choosing a Machine is given on the basis of NPV.

Q: XYZ Company is looking to invest in some new machinery to replace its current malfunctioning one.…

A: >Payback period is the amount of time it will take to get back the amount initially invested.…

Q: A company that manufactures automobile headlight housings invested $750,000 in an automated assembly…

A: Using excel RATE function where PV = Amount invested  NPER = no. of years FV = Salvage Value PMT =…

Q: Raytheon wishes to use an automated environmental chamber in themanufacture of electronic…

A:

Q: Labco Scientific sells high-purity chemicals to universities, research laboratories, and…

A: Given: New equipment cost = $560,000 Year = 3 Interest rate = 6%

Q: You are the owner of a large data-services firm and are deciding on the purchase of a new…

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

Q: The Balas Manufacturing Company is considering buying an overhead pulley system. The new system has…

A: 1. Workings:

Q: A company that manufactures brushless blowers invested $650,000 in an automated quality control…

A: IRR is the rate of return a project generates through its lifetime expressed in annual terms. It is…

Q: Swifty Corporation is involved in the business of injection molding of plastics. It is considering…

A: Time value of money: The value of money changes over a period time. The value of money depends on…

Q: XYZ Company is looking to invest in some new machinery to replace its current malfunctioning one.…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Nelson Electronics, Inc., just purchased a soldering machine to be used in itsassembly cell for…

A: Machine cost = $150,000 Salvage value = $20,000 Useful life = 6 years Interest rate = 15.00% Machine…

Q: KADS, Inc., has spent $400,000 on research to develop a new computer game. The firm is planning to…

A: While investing in a project it is necessary to estimate the cash flows from the project. If the net…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.