Metalfab Pump and Filter Inc. estimates that the cost of steel bodies for pressure valves will increase by $2 every 3 months. If the cost for the first quarter is expected to be $80, what is the present worth of the costs for a 5-year time period at an interest rate of 1.1% per quarter?   Please work out the problem, do not use excel, however if you must please show formulas and every thing thank you!

Q: With that money, you are going to buy a new 3D printer. You estimate that you will print 10,000…

A: Requirement = 10,000 watches per year Time Period of machines (N) = 8 years   Annual Cost = (Number…

Q: Altmax Ltd, a company that manufactures automobile wiring harnesses, has budgeted P = $400,000 now…

A: Time value of money means that worth of a rupee today is less than the worth of rupee in future.…

Q: after a lengthy meeting with the marketing team about a new product being introduced, your boss asks…

A:

Q: McMillan Company manufactures electronic flow sensors that are designed as an alternative to…

A:

Q: Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last…

A: The payback period is the time taken to recoup the initial investment   net present value is the…

Q: Solar Hydro manufactures a revolutionary aeration system that combines coarse and fine bubble…

A: EAC is computed below:

Q: Turik Electronics manufactures microprocessorbased soft starters that use thyristors for controlled…

A: Equivalent annual cost is cost of the project expressed in cost per year terms, it is used to…

Q: Acme corporation is considering two alternative injection molding machines, and MARR IS 15% per…

A: Solution- Alternative A has higher sensitivity as explained below- Years Particulars A(-50%)…

Q: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an…

A: Formula: Contribution margin = Sales price - variable cost.

Q: Mike made $10,000 investment in an endorser whereby he manufactures products that are easily sold at…

A: We need to determine the accumulated cost and then by using the cost per unit, we need to determine…

Q: Cushman Manufacturing Company has a five-year-old vertical numerical chucker (VNC) that has a…

A: a. The calculation of old VNC is: The formulae image is:

Q: Annual Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of…

A: Calculation of PVAF for all machines Annual Operating Cost, $ per year: Machine PVAF (20%,4…

Q: Cecil’s Manufacturing is considering production of a new product. The sales price would be $10.25…

A: Given information: Cost of the equipment is $100,000 Operating maintenance cost is $3,500 MARR is…

Q: Cecil’s Manufacturing is considering production of a new product. The sales price would be $10.25…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Mikes Bike Co. currently sells 11 million bike tires each year at a price of $17 per tire. It is…

A: Given Information, Price of each tire = $17 Price of Improved tire = $23 each  Cost of old tire to…

Q: Meggitt Systems, a company that specializes in extreme-high-temperature accelerometers, is…

A: Given:  Present value= $280,000 Interest rate =12%

Q: Omega Instruments has budgeted $300,000 per year to pay for certain ceramic parts over the next 5…

A:

Q: The sales and finance team of a car company is evaluating a new proposed luxury model of its brand…

A: Present worth computes the existing value of future benefits by discounting future worth with a…

Q: A process for producing the mosquito repellant Deet has an initial investment of $200,000 with…

A: a) Computation: Hence, the payback period at 0% interest rate is 5 years.

Q: a) Zoey Enterprises manufactures solar engines for helicopters. Given the fuel savings available,…

A: Credit period refers to the total time period allowed by a business entity to its customers who…

Q: A production company is planning to open up another manufacturing setup in order to cope up with…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Metalfab Pump and Fiter Inc. estimates that the cost of steel bodies for pressure valves will…

A: First quarter cost = $ 80 Increase in cost per quarter = $ 2 Number of quarters in 3 Years = 3*4 =…

Q: A manufacturing firm has decided to plan for the purchase of a pickup truck several years from now.…

A: Accumulation of fund or future value of the periodic deposits depends on the interest rate, time of…

Q: The sales and finance team of a car company is evaluating a new proposed luxury model of its brand…

A: NPV is the net current worth of cash flows that are expected to occur in the future.

Q: A new furnace for your small factory is being installed right now, will cost $39,000, and will be…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: What is the NPV of each system?

A: Information Provided:   Year The Alpha 8300 (Cash flows) The Beta 2100 (Cash flows) 0…

Q: The sales and finance team of a car company is evaluating a new proposed luxury model of its brand…

A:

Q: Swifty Hammocks is considering the purchase of a new weaving machine to prepare fabric for its…

A: IRR is given by,  PV of cash inflows = initial cost PV = E(1-(1+r)-p)/r  Where, E = annual cashflow…

Q: Sensotech, Inc., a maker of microelectromechanical systems, believes it can reduce product recalls…

A: MARR is return that an proposal must earn to qualify for investment. Investors or Manager have…

Q: A machine having a first cost of $20,000 is expected to save $1500 in the first year of operation,…

A: Information Provided Machine first cost = $20,000 Savings in the first year = $1500 Increment in…

Q: A company is planning a new product. Market research suggests that demand for the product would last…

A: Life cycle costing: Cost incurred over the lifespan of asset is called lifecycle costing. The cost…

Q: The sales and finance team of a car company is evaluating a new proposed luxury model of its brand…

A: Present worth analysis is an analysis in which we convert all the cash flows to present worth using…

Q: Knight Shades Inc. is considering adding new line of sunglasses to their designer series. The…

A: Cost of Plant & Equipment : $12,000,000 Estimated life: 7 Years Depreciation per year:…

Q: A robot’s first cost is $40,000, and its market value declines by 20% annually. The operating and…

A: Equivalent Uniform Annual Cost (EUAC) refers to the annual cash flows generated in the form of…

Q: How many fans must be sold to break even if the fans are priced at $150? b. If Hot-Air sells 6,000…

A: Computation of the following is shown below : Break even point ( units)          = Fixed cost /…

Q: Metalfab Pump and Filter, Inc. estimates that the cost of steel bodies for pressure valves will…

A:

Q: Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last…

A: GIVEN, initial cost = $950,000 fixed cost = $244,000 sales= $935,000 variable cost = 24% of sales=…

Q: )  Calculate the initial investment, annual after-tax cash flows for each year, and the terminal…

A: Investment appraisal techniques are used while investing in a project. These techniques tell us…

Q: 4

A: MONTHLY PROFIT = $2000 THEN  YEARLY = $2000*12=$24,000 YEAR CASH FLOW      0 -81000 1 24000…

Q: The sales and finance team of a car company is evaluating a new proposed luxury model of its brand…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: The sales and finance team of a car company is evaluating a new proposed luxury model of its brand…

A: a. The calculation is: NPV is negative. Hence, the proposed investment is not a profitable…

Q: A company is planning a new product. Market research suggests that demand for the product would last…

A: Compute target cost of product per unit using selling price and mark-up as shown below:…

Q: You are looking at purchasing a new computer for online class. Computer A costs $4000 now, and you…

A: Computer A Computer B Cost of Purchase 4000 2500 Upgrade N.A at Year 2 End Upgrade Cost…

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.