What is the minimum cost of crashing the following project that Roger Solano manages at Slippery Rock University by 4 days?NormalActivity Time (days)6ACrash Time NormalCost(days)5B86C545374The total cost of crashing the project by 4 days is SActivityABCDE$800$250$600(Enter your response as a whole number.)D$750E$1,200By how many days should each activity be crashed to reduce the project completion time by 4 days? Fill in the table below. (Enter your responses as whole numbers.)Each Activity Should beReduced BY(days)ImmediateTotal Costwith Crashing Predecessor(s)00000$1,100$400$650$1,500$1,650AC

The critical path is that path which takes the longest time from start to finish to complete the…

What is the minimum cost of crashing the following project that Roger Solano manages at Slippery Rock University by 4 days? Normal Activity Time (days) Crash Time (days) Normal Cost A 6 5 $800 8 6 $250 5 4 $600 B C The total cost of crashing the project by 4 days is S 5 7 3 4 Activity A B C D E D $750 E $1,200 By how many days should each activity be crashed to reduce the project completion time by 4 days? Fill in the table below. (Enter your responses as whole numbers.) Each Activity Should be Reduced BY (days) (Enter your response as a whole number.) Immediate Total Cost with Crashing Predecessor(s) 00000 $1,100 $400 $650 $1,500 $1,650 A C

What is the minimum cost of crashing the following project that Roger Solano manages at Slippery Rock University by 4 days? Normal Activity Time (days) Crash Time (days) Normal Cost A 6 5 $800 8 6 $250 5 4 $600 B C The total cost of crashing the project by 4 days is S 5 7 3 4 Activity A B C D E D $750 E $1,200 By how many days should each activity be crashed to reduce the project completion time by 4 days? Fill in the table below. (Enter your responses as whole numbers.) Each Activity Should be Reduced BY (days) (Enter your response as a whole number.) Immediate Total Cost with Crashing Predecessor(s) 00000 $1,100 $400 $650 $1,500 $1,650 A C

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 22E: Thaler Company bought 26,000 of raw materials a year ago in anticipation of producing 5,000 units of...

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Thaler Company bought 26,000 of raw materials a year ago in anticipation of producing 5,000 units of a deluxe version of its product to be priced at 75 each. Now the price of the deluxe version has dropped to 35 each, and Thaler is now deciding whether to produce 1,500 units of the deluxe version at a cost of 48,000 or to scrap the project. What is the opportunity cost of this decision? a. 175,000 b. 375,000 c. 48,000 d. 26,000
An engineering firm has identified five ways to cut costs in its main office. Only one of the options can be implemented, however, since each involves significant training time for staff engineers. Data are provided in the table. Each option has a lifetime of seven years, and the firm sets a MARR at 15%. Option A B C D E Capital cost ($ million) 2.713 0.375 1.650 0.088 0.950 Annual cost ($ million/yr 0.093 0.275 0.132 0.147 0.228 Annual benefit ($ million/yr) 0.890 0.288 0.841 0.312 0.505 a) Solve by present worth analysis. b) Solve by annual cash flow analysis. c) Solve by incremental benefit-cost ratio analysis. d) Solve by an incremental rate of return analysis using the full detailed procedure
The LJB Company must replace a freezer and is trying to decide between the following two alternatives: Item Freezer A Freezer B Investment required (29,000) (25,000) Annual electrical bill (3,000) (4,000) Salvage value 6,000 5,000 Project life in years 11 11 The LJB Company’s cost of capital is 8 percent. Which investment provides LJB with the lowest total cost?
Choose the best option in terms of which sets of workers and equipment should be chosen. The project is expected to last in 300 days. Show complete solution Option A. 4 workers with one having ₱ 750 daily rate while the rest with ₱500, To buy equipment with original cost of ₱50 000 and salvage value of ₱10 00 Option B. 3 workers with two having ₱ 750 daily rate while the rest with ₱500, To buy equipment with original cost of ₱20 000 and salvage value of ₱5 000
A civil engineer involved in construction management must decide between two ways to pump concrete up to the top floors of a seven-story office building under construction. Plan 1 requires the purchase of equipment for $6000 which costs between $0.40 and $0.75 per metric ton to operate, with a most likely cost of $0.50 per metric ton. The asset is able to pump 100 metric tons per day. If purchased, the asset will last for 5 years, have no salvage value, and be used 50 days per year. Plan 2 is an equipment-leasing option and is expected to cost the company $2500 per year for equipment with a low cost estimate of $1800 and a high estimateof $3200 per year. In addition, an extra $5 per hour labor cost will be incurred for operating the leased equipment each 8-hour day. Use i = 12% per year. (a) Which plan should the engineer recommend on the basis of the most likely estimates of costs? (b) Will the decision above change if the pessimistic estimates are used?
In evaluating projects, LeadTech’s engineers use a rate of 15%. One year ago a robotic transfer machine was installed at a cost of $38,000. At the time, a 10-year life was estimated, but the machine has had a downtime rate of 28%, which is unacceptably high. A $12,000 upgrade should fix the problem, or a labor-intensive process costing $3500 in direct labor per year can be substituted. The plant estimates indirect plant expenses at 60% of direct labor, and it allocates front office overhead at 40% of plant expenses (direct and indirect). The robot has a value in other uses of $15,000. What is the difference between the EUACs for upgrading and switching to the labor-intensive process?
Your boss has told you to evaluate the cost of two machines.After some questioning, you are assured that they have thecosts shown at the right. Assume:a) The life of each machine is 3 years.b) The company thinks it knows how to make 14% oninvestments no riskier than this one.Determine via the present value method which machine topurchase. MACHINE A MACHINE BOriginal cost $13,000 $20,000Labor cost per year 2,000 3,000Floor space per year 500 600Energy (electricity) per year 1,000 900Maintenance per year 2,500 500Total annual cost $ 6,000 $ 5,000Salvage value $ 2,000 $ 7,000
Eight years ago, the Blank Block Building Company installed an automated conveyor system for $38,000. When the conveyor is replaced, the net cost of removal will be $2500. The minimum EUAC of a new conveyor is $6500. When should the conveyor be replaced if BBB’s MARR is 12%? The O&M costs for the next 5 years are $5K, $6K, $7K, $8K, and $9K.
Show Complete Solution: Lifeline Co. is considering undertaking a one-off building project.The project will use 2 different types of window, standard and decorative.Standard windows currently cost P40 each and the project will require 20,000 of these.Decorative brick currently costs P120 each and the project will require 2,000 of these.Birkin has 7,000 standard windows in stock which cost P30 when they were purchased 3 monthsago. These are used in all projects undertaken by Birkin and there are 3 other projects inprogress at the moment.Birkin has 300 decorative windows in stock which cost P150 when they were purchased. Theydo not expect to use the decorative type on future projects and could sell any that they have fortheir current cost price less 10% as some are damaged.What is the total relevant cost of the windows for consideration of the project?
An electric power generating project has a first cost of $447,946 and annual operating costs of $30,000. There is a $180,000 overhaul cost in Year 8. The facility will have a salvage value of $75,000 at the end of Year 15. What is the minimum annual revenue for a breakeven PW at i=10%? Answer to the nearest whole dollar, and enter only the number. PLEASE USE EXCEL AND SHOW FORMULAS
4 How long would it take to recover and investment of $250,000 in enhanced CNC controls that include axis control to eight axes on the milling model, if the associated income is $80,000 per year, expense is $40,000 per year, and salvage is $180,000 at end of first year and decreases by $2,0,000 every year after year one. MARR=6%.Hint: Payback period is between 4 and 8 years. please don't use software and show work
The management of a manufacturing company is planning to buy a new milling machine. The investment cost is $17,613. At the end of its 6-year expected life, the equipment will have a salvage value of $8,000. There is an upgrade cost of $9,572 at the end of year 3. The equipment can save $5,000 per year by increasing productivity. Suppose that ϵ=MARR=18%. Determine the project’s ERR.