What is present value of the purchase and use of machine

Assignment Help Operation Management
Reference no: EM132304697

Your company wants you analyze the present value of buying and using a machine used in manufacturing. The purchase price of the machine is $35,900. It has a 15 year lifetime. It will be used about 375 hours per month and is rated at 1,600 watts. Maintenance costs for the machine are estimated to be $50/month. The return on investment of your company is estimated to be 8.75%. Electricity costs 15.3 cents/kilowatt-hour. The lifetime of the machine is estimated to be 15 years. What is the present value of the purchase and use of the machine? Assume monthly compounding.

Reference no: EM132304697

Questions Cloud

Explain company decision to do away with tipping : Explain a company’s decision to do away with tipping for its employees that will keep diners happy and coming back for more meals?
How will you use the knowledge gained over the course : How will you use the knowledge gained over this course? Do you think the SHRM website would be valuable to you in your current or future positions?
Role of project manager be in overall procurement process : What should the role of a project manager be in the overall Procurement process.
How does the campaign benefit stakeholders : How does a board of directors' gender balance impact a corporate message aimed to increase the participation of women? How does this campaign benefit.
What is present value of the purchase and use of machine : What is the present value of the purchase and use of the machine? Assume monthly compounding.
What did you learn from the interview : What is his/her background (name, age, profession, origins)? Is he/she a recent immigrant, the son/daughter of an immigrant, are his/her parents natives.
Evaluate different project management methods : IFN700 - Project Management - Queensland University of Technology - Critically evaluate different Project Management methods and select which is appropriate
What does it mean to you to be ethical : What does it mean to you to be ethical? Do you anticipate ethical challenges as you go forward in your career?
Discuss idea for applying evidence based management practice : In your current role, describe one idea for applying evidence based management practices that could add value to your team/unit and organization?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd