Requires electric motors as part of major assemblies

Assignment Help Operation Management

Reference no: EM131129906

You are a manufacturing engineer at a firm that requires electric motors as part of major assemblies. You can purchase the motors for $350 each today with a 5% per year increase. On the other hand, you can manufacture the motors.

The manufacturing of the motors will require an investment of $300,000 today plus an investment of $100,000 one year from now. The raw materials and labor required to make the motors is $15 per motor. There is no increase in cost over the planning horizon. If the project horizon is 8 years from today, what is the minimum number of motors PER YEAR required to make manufacturing a less expensive option for years 2 through 8. The machine to make the motors has no salvage value and the MARR is 12%.

Reference no: EM131129906

Questions Cloud

About the podcast ads : Podcast Ads. If you really want an ad, go through podcast. They are cheap, easy, and effective. Find a podcast that relates to the type of service or product your company offers and strike a deal. They are always looking for advertising and are willi..

Write at least three marketing communications objectives : Write at least three marketing communications objectives using the AIDA framework discussed in the course content. Write at least three marketing communications objectives using the AIDA framework discussed in the course content.

The health reform law : The Health Reform Law (ACA) includes a provision to prohibit physicians having any ownership interest in “specialty” hospitals (e.g., those primarily providing cardiac surgery, or orthopedic surgery, etc.) from receiving Medicare payment for any serv..

Risk aversion and investment : Risk aversion and Investment Consider an investor who has available the sum of $15,000 for investment, and is considering investing in stocks X1, X2, and X3. The prices of these stocks during the last 12 months are provided in the table below. The in..

Requires electric motors as part of major assemblies : You are a manufacturing engineer at a firm that requires electric motors as part of major assemblies. You can purchase the motors for $350 each today with a 5% per year increase. The manufacturing of the motors will require an investment of $300,000 ..

Beliefs and attitudes essay : Beliefs and Attitudes Essay People don’t like it when their beliefs, attitudes, and behaviors are inconsistent. We don’t approve of this inconsistency in others, either. In a two-page essay, consider why this is so by answer the following questions: ..

Forecasting is based on projecting historical information : Continue with analyzing feedback within your supply chain at EBBD. Forecasting is based on projecting historical information into the future to provide some type of goal or expectation for system performance. Forecasting can also be based on qualitat..

Fictitious vendors-theft and embezzlement : Control. Write a brief explanation of desirable controls, missing controls, and especially the kinds of “deviations” that could arise from the situation described in the case. Audit of balance. Write some procedures for getting evidence about the exi..

In object-oriented development and system testing : In object-oriented development. System testing. Users prefer systems that:

User Account

All Pages