Reference no: EM13837328
Toro Company is expanding its El Paso plastic molding plant as it continues to transfer work from Juarez, Mexico contractors.
The plant bought a $1.1 million precision injection molding machine to make plastic parts for Toro lawn mowers, trimmers, and snow blowers.
The plant also spent $275,000 for three smaller plastic injection molding machines to make plastic parts for a new line of sprinkler systems.
The plant expects to hire 13 people, including some engineers for the expansion. If the average loaded cost (i.e., including benefits) of each employee is $100,000 per year, determine the annual worth of the new systems over a five-year planning period at an interest rate of 10% per year. Assume a 25% salvage value for the new equipment.
a) Write the standard notation
b) Write the formula substituting values from the interest factor tables.
c) Give the correct AW value using the correct units
d) Use Excel to verify your answer
|
Competitors lower production to limit supply-increase price
: A firm suggests that they and their competitors (oligopoly) lower their production to limit supply and increase price. Thinking about the kind of game this is...would it be a Bertrand or Cournot; would it be finitely or infinitely repeated and would ..
|
|
Discuss how the dual-concern model
: Discuss how the Dual-Concern Model and Big Five Personality Dimensions facilitate recognizing bargaining styles and how such styles impact behaviors and strategies in a negotiation.
|
|
Think about disposable income
: The macroeconomic principles we will explore were developed by an English Economist back in the 1930s as a method for bringing Europe and the U.S. out of the Great Depression. If the economy is operating at a point less than full employment (as it is..
|
|
What is the total benefit for the resident
: A small Indiana town has one resident who uses and enjoys the local bowling alley. The marginal benefit of bowling for that resident is given by MB=50-7Q. The manager at the bowling alley has set the price of a game at $20. What is the total benefit ..
|
|
Formula substituting values from the interest factor tables
: Toro Company is expanding its El Paso plastic molding plant as it continues to transfer work from Juarez, Mexico contractors. The plant bought a $1.1 million precision injection molding machine to make plastic parts for Toro lawn mowers, trimmers, an..
|
|
Calculate the expected value of the gamble
: Suppose Jasmine is invited to the following dice gamble: a fair die with 6 sides showing a different number from 1 to 6 will be cast. The number on the top side of the die will be the prize money to the player. She needs to pay $4 to enter the gamble..
|
|
Osha''s personal protectiveequipment standard
: OSHA's Personal ProtectiveEquipment Standard requires employers to assess the workplace to determine ifhazards are present that necessitate the use of PPE. Based on the assessment,appropriate PPE must be selected and provided to affected employees.
|
|
Utility rate analyst at the local electricity utility
: Laura has an undergraduate degree in economics and has been working as a utility rate analyst at the local electricity utility. If she continues on her present career path, the present value of her lifetime earnings is $250,000. Calculate the discoun..
|
|
What is the annual rate of return
: The price today of a bond that will pay its owner $1,000,000 in five years is $747,258.17 What is the annual rate of return on this bond (bond yield maturity )?
|