Reference no: EM131189727
Question 1. The manufacture of herbal health tonic is a competitive industry. The manufacturing facilities have an annual output of 100,000 gallons. Operating costs are $2 per gallon. A 100,000 gallon capacity plant costs $500,000 to build and has an indefinite life, with no salvage value. The cost of capital is 20% (assume no taxes).
a. Your company has discovered a new process that lowers the operating cost per gallon to $1.50. Assuming that the competition will never catch up and the market demand is sufficiently high, what is the net present value of building a new plant with new technology?
b. If your company has discovered a new process that lowers the operating cost per gallon to $1.00 and assuming that the competition will catch up in three years and the market demand is sufficiently high, what is the net present value of building a new plant with new technology, assuming a $500,000 salvage value in Year 3?
c. Assuming the parameters of (b), but that the competition will catch up in five years and the market demand is sufficiently high, what is the net present value of building a new plant with new technology, assuming a $500,000 salvage value in Year 5?
|
How might faith-based assessment strategies
: Write about any teaching or administration experience you currently have (or have had in the past). Explain what types of assessments you use in your classroom and your reasoning for using them. For those who have never taught, recall a class from..
|
|
Contractors and consultants
: A more effective facility team is one that is divided into segments of staff, contractors and consultants
|
|
Recommended range for planning is long range
: According to the book the general recommended range for planning is long range.
|
|
How is it we judge people based on criteria
: What kind of effects do ascribed statuses have on the lives of individuals? If the US is a land of opportunity, what is needed for someone to transcend the stereotypical perception of persons with a particular ascribed status?
|
|
What is the net present value of building
: Your company has discovered a new process that lowers the operating cost per gallon to $1.50. Assuming that the competition will never catch up and the market demand is sufficiently high, what is the net present value of building a new plant with ..
|
|
Assigned to a personnel department
: In all sizes of organizations big and small will the facility manager have to be assigned to a personnel department.
|
|
Create a logical data model that represents this file
: You have been given a file that contains fields relating to CD information. Using the steps of normalization, create a logical data model that represents this file in third nominal form
|
|
Major problem for the profession
: A major problem for the profession and for individual facility managers is that they do not realize or fail to understand how they are perceived within the organization.
|
|
A case study of leadway limited
: A Case Study of Leadway limited, Leadway limited started out as a small consulting business whose mission is to create value for their customers. It was founded in 2010 and since that time the company has grown to become a medium size business with a..
|