User Account

All Pages

What is the npv for the flexible manufacturing system

Assignment Help Accounting Basics
Reference no: EM133036476

Question - Barker Production Company is considering the purchase of a flexible manufacturing system. The annual cash benefits/savings associated with the system are:

Decreased waste $75,000

Increased quality 100,000

Decrease in operating costs 62,500

Increase in on-time deliveries 12,500

The system will cost $750,000 and will last ten years. The company's cost of capital is 10%.

Required -

A. What is the payback period for the flexible manufacturing system?

B. What is the NPV for the flexible manufacturing system?

Reference no: EM133036476

Questions Cloud

Calculate the total number of units of each model to produce : The company has determined that a minimum of 2,500 units should be made of each model. Calculate the total number of units of each model to produce
What conclusions can you draw about the management : Analyze the cash flows of ABC Company. What conclusions can you draw about the management of the company based on their cash flows
How should jennifer prioritize her qualified prospects : What methods should Jennifer use to generate sales leads beyond those provided by her company?
Apply the porter force model : Need a SWOT matrix for a current place of work, or for an organization to which you belong. Apply the Porter's 5 force model to assess whether you believe your
What is the npv for the flexible manufacturing system : The system will cost $750,000 and will last ten years. The company's cost of capital is 10%. What is the NPV for the flexible manufacturing system
Contents of an organizational food safety program : Outline the contents of an organizational food safety program, especially noting procedures, associated requirements, and monitoring documents.
What is the percentage increase in operating income : Company X's projected totals for next year are: Total variable cost $1,200,000. What is the percentage increase in operating income
Calculate the adjusted trading Profit : Calculate the adjusted trading Profit of Arun for the year ended 31 March 2021 after adjusting the brought forward trading loss
Explain the trading pieces of paper : Does Bogle suggest that the US economy is healthy and making things that the world will buy or simply trading pieces of paper, swapping stocks and bonds back an

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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