Operations Management
13th Edition
ISBN: 9780136860419
Author: Lee Krajewski
Publisher: Pearson Education
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Question
Chapter 7.S, Problem 38P
a)
Summary Introduction
To determine: The type of ovens that need to be purchased using the present value method.
Introduction:
Present value (PV):
It is the value that is in present form of money in contrast to some future amount. This is achieved when it is invested in compound interest.
The NPV is the measurement of profit that is calculated by subtracting the present values of
b)
Summary Introduction
To determine: The assumptions made regarding the ovens.
c)
Summary Introduction
To determine: The assumptions made in the methodology that is followed.
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Your boss has told you to evaluate two ovens forTink-the-Tinkers, a gourmet sandwich shop. After some questioningof vendors and receipt of specifications, you are assuredthat the ovens have the attributes and costs shown in the followingtable. The following two assumptions are appropriate:1. The life of each machine is 5 years.2. The company thinks it knows how to make 14% on investmentsno more risky than this one.a) Determine via the present value method which machine to tellyour boss to purchase.b) What assumption are you making about the ovens?c) What assumptions are you making in your methodology?
How can I answer these questions:
during the following years, the following scenarios take place (assume that the scenarios are independent of each other) and the controller of Smeets Printing records these:
1) Change of estimate: Assume that on January 1, 2020, Smeets Printing revised its estimate of the total useful life to nine years and changed its estimate of the residual
value to €150,000. Assume that Smeets Printing uses straight-line depreciation. What effect would this have on the depreciation expense in 2020?
2) Gain or loss on asset sale: Assume that on December 31, 2021, Smeets Printing sells the machine to another company for €1,100,000. At the disposal date, calculate the cumulative depreciation expense and the net book value of the machine for each of the depreciation methods. Prepare the necessary journal entries to record the sale under the different depreciation methods.
The Ford Motor Company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment
period is four years (equal lives), and the MARR is 12% per year. Data for fixturing costs of the systems are given below. Which alternative should the company select?
Annual
Receipts
Salvage
Capital
Investment
Less
Alternative
IRR
Expenses
$3,750
Value
$12,000
$3,000
$3,700
$1,500
A
16.6%
$15,800
$8,000
16.7%
$5,000
C
19.0%
$2,750
Chapter 7 Solutions
Operations Management
Ch. 7.S - Prob. 1DQCh. 7.S - Prob. 2DQCh. 7.S - Prob. 3DQCh. 7.S - How is actual, or expected, output computed?Ch. 7.S - Explain why doubling the capacity of a bottleneck...Ch. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQCh. 7.S - Prob. 8DQCh. 7.S - Prob. 9DQCh. 7.S - Prob. 10DQ
Ch. 7.S - Explain how net present value is an appropriate...Ch. 7.S - Prob. 12DQCh. 7.S - What are the techniques available to operations...Ch. 7.S - Amy Xias plant was designed to produce 7,000...Ch. 7.S - For the past month, the plant in Problem S7.1,...Ch. 7.S - If a plant has an effective capacity of 6,500 and...Ch. 7.S - Prob. 4PCh. 7.S - Material delays have routinely limited production...Ch. 7.S - Prob. 6PCh. 7.S - Southeastern Oklahoma State Universitys business...Ch. 7.S - Under ideal conditions, a service bay at a Fast...Ch. 7.S - A production line at V. J. Sugumarans machine shop...Ch. 7.S - A work cell at Chris Ellis Commercial Laundry has...Ch. 7.S - The three-station work cell Illustrated in Figure...Ch. 7.S - The three-station work cell at Pullman Mfg., Inc....Ch. 7.S - The Pullman Mfg., Inc., three-station work cell...Ch. 7.S - Klassen Toy Company, Inc., assembles two parts...Ch. 7.S - Prob. 15PCh. 7.S - Prob. 16PCh. 7.S - Markland Manufacturing intends to increase...Ch. 7.S - Using the data in Problem S7.17. a. What is the...Ch. 7.S - Given the data in Problem S7.17, at what volume...Ch. 7.S - Janelle Heinke, the owner of HaPeppas!, is...Ch. 7.S - Prob. 21PCh. 7.S - Prob. 22PCh. 7.S - Prob. 23PCh. 7.S - Prob. 24PCh. 7.S - Prob. 25PCh. 7.S - As a prospective owner of a club known as the Red...Ch. 7.S - Prob. 27PCh. 7.S - James Lawsons Bed and Breakfast, in a small...Ch. 7.S - Prob. 33PCh. 7.S - Prob. 34PCh. 7.S - Prob. 35PCh. 7.S - What is the present value of 5,600 when the...Ch. 7.S - Prob. 37PCh. 7.S - Prob. 38PCh. 7.S - Bolds Gym, a health club chain, is considering...Ch. 7.S - Prob. 1VCCh. 7.S - Prob. 2VCCh. 7.S - Prob. 3VCCh. 7 - What is process strategy?Ch. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - What is process redesign?Ch. 7 - Prob. 5DQCh. 7 - Name the tour quadrants of the service process...Ch. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Identify manufacturing firms that compete on each...Ch. 7 - Identify the competitive advantage of each of the...Ch. 7 - Prob. 11DQCh. 7 - Identify the competitive advantage of each of the...Ch. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Explain what a flexible manufacturing system (FMS)...Ch. 7 - Prob. 17DQCh. 7 - Prob. 18DQCh. 7 - Prepare a flowchart tor one of the following: a....Ch. 7 - Prob. 14PCh. 7 - Prepare a time-function map for one of the...Ch. 7 - Prepare a service blueprint for one of the...Ch. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Ski Boards, Inc., wants to enter the market...Ch. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Using Figure 7.6 in the discussion of value-stream...Ch. 7 - Metters Cabinets, Inc., needs to choose a...
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