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(Show the Cashflow Diagram if needed) The amount of raw material required for a certain machine part is 2.05 cm3. The finished part will have a 1.07 cm3 volume. The processing time of each piece is 50 seconds for copper and 35 seconds for aluminum. The cost of copper is P 30.50 per kg, without a scrap value. The cost of aluminum is P55.00 per kg, with a scrap value of P20.00 per kg. The operator wage is P50.00 per hour and the
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- Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and provide the following cash flows over the next five years: $88,000, 92,000, $91,000, $72,000, and $71,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel, see Appendix C.Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following cash flows over the next five years: $99,000, $88,000, $92,000. $87,000, and $72,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel. see Appendix C.(Show the Cashflow Diagram if needed) A machine part to be fabricated may be made from alloy of either of two metals. There is an order for 10,000 units. Metal A costs 3 pesos per kg, while Metal B costs 9 pesos per kg. If Metal A is used, the material per unit weighs 110 grams; for metal B, 30 grams. When metal A is used, 50 units can be produced per hour; for metal B, 80 units per hour. Metal B fabrication requires the aid of a tool costing P1,000, which will be useless after the 10,000 units are finished. The machine operator's wage is P50 per hour. If all other costs are identical, determine which material will be more economical to finish the 10,000-unit order. How much is the total cost difference between the use of metal A and metal B?
- You need to determine the working capital using the cash conversion cycle method. If you have the following information regarding its costs and the economic cycle (of conversion into cash). And if the company has fixed total annual costs of $50,000 and variable costs of $100,000. Consider a year of 360 days. The product requires 12 hours of processing and the company works only one shift a day (8 hours), and the raw material takes 10 days to reach the plant. The product takes 3 days to reach the distributor. In addition, the following information is available: RAW MATERIAL STORAGE PERIOD : 16 days FINISHED GOODS INVENTARY PERIOD : 10 days CREDIT TO DISTRIBUTORS: 60 days SUPPLIER CREDITS: 45 DAYSThe production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best cash payback. Machine A Machine B Machine C Annual cash flow $40,000 $50,000 $75,000 Average investment 300,000 250,000 500,000 a.Machine A b.Machine C c.Machine B d.Machines B and C have the same preferred payback period.Ranger Corporation is currently selling widgets for $40 at a cost of $20 per unit. Fixed costs are currently $500 and the current production is 100 widgets. What is the Operating Cash Flow at this output level?
- Cecil company is considering the of a new machine. The machine cost $227,500 and will generate a yearly cash inflow of $35,000. what is the payback period? Requirement: what is the payback period?Poisson Calculators has found that it is indifferent between purchasing a high-capacity vacuum component assembly machine or a lower capacity machine as long as sales are above 1,900 units per month. The price of each calculator is $70. The high-capacity machine has cash expenses of $100,000 per month and depreciation and amortisation expenses of $30,000 per month, while the alternative has cash expenses of $30,000 per month and depreciation and amortisation expenses of $5,000 per month. Under the low-capacity alternative, variable costs per unit are $60. If the company bases its decisions on the Accounting Operating Profit Break-even, then what is the variable cost per unit under the high-capacity alternative? a. $10 b. $47 c. $60 d. $70The quarrying cost of marble and granite blocks plus delivery cost to the processing plant each is ₱2400 per cubic meter. Processing cost of marble into tiles is ₱200 per square meter and that of granite into tiles also is ₱600 per square meter. If marble has net yield of 40 square meters of block and sells at ₱400 per square meter, and granite gives a net yield of 50 square meter of tiles per cubic meter of block, and sells at ₱1000 per square meter, determine the more profitable material, considering all other costs to be the same and how much is the difference in profit. Show completesolution.
- A company is considering expanding a production line, which is expected to remain operational for the foreseeable future. There are two machines, A and B, which could do the job. However, the two machinces are not the same. First of all the price of A is 400 MUSD and the price of B is 300 MUSD. Furthermore, A needs to be replaced every 8, whereas B needs to be replaced every 4. Otherwise, the machines perform similarly, producing 20 MUD additional cashflow every year. The firm's cost of capital is 22.0%, 1. What is the cost equivalent of A? MUSD/year 2. What is the npv of the project if A is selected? MUSDTyler, Inc., is considering switching to a new production technology. The cost of the required equipment will be $3,764,394 . The discount rate is 13.01 percent. The cash flows that the firm expects the new technology to generate are as follows. Years CF 0 $(3,764,394) 1–2 0 3–5 $878,248 6–9 $1,534,992 Compute the payback and discounted payback periods for the project. (Round answers to 2 decimal places, e.g. 15.25.) The payback for the project is ............ years, and the discounted payback period is........... years. What is the NPV for the project? Should the firm go ahead with the project? (Round answer to 2 decimal places, e.g. 15.25.) The NPV of the project is $ , and using the NPV rule the project should be rejected/ accepted . What is the IRR, and what would be the decision based on the IRR? (Round answer to 2 decimal places, e.g. 15.25.) The IRR of the project is %, and using the IRR rule the…Can you kindly help show the steps for calculating the Working Capital for a product line capable of producing 1.25 Million units per year, total estimated investment cost for the new line is $25 Million, selling price is fixed for the project life at $125 per unit. Working capital based on a 2.5-month supply of raw materials and 1.5 months of combined inventory (WIP and finished goods)? Variable costs per unit include $35 for materials, $20 for manufacturing, and $18 for labor. There are additional fixed operating and maintenance costs totaling $14.25 Million per year. Salvage value equal to 20% of the purchase price at the end of the 6-year project life. The Federal tax rate is 23% and State tax rate is 8.75%. MARR of 18%. Inflation is expected to increase the variable and fixed costs by 6.4% after the first year. In years 3- 6, inflation is expected to decline by 1.2% each year (year 2 inflation is 6.4%, year 3 is 5.2%, etc.) The project falls under a 7-year MACRS class life. The…
