An Australian steel company, ASM International, claims that a savings of 40% of the cost of stainless steel threaded bar can be achieved by replacing machined threads with precision weld depositions. A U. S. manufacturer of rock bolts and grout-in-fittings plans to purchase the equipment. A mechanical engineer with the company has prepared the following estimates for additional costs and savings over the next 4 years (16 quarters). Costs decrease for some time, then increase rapidly as the equipment ages. Savings peak at $80,000 for some quarters, but then decrease as expected competition takes its toll. The U. S. manufacturer president is not sure of the time frame to plan for the use of this new technology. The decision, in part, rests upon the rate of return achievable as the years of use progress. In the past, projects must return at least 24% per year to be retained. (a) Determine the expected rate of return per quarter for 2 years (8 quarters) and beyond using a spreadsheet. (b) Plot i* versus quarter to graphically illustrate your results. (c) Make a recommendation on the number of years to use the technology to economic advantage. Quarter Cost, $ Savings, $ 0 โ350,000 โ 1 โ50,000 10,000 2 โ40,000 20,000 3 โ30,000 30,000 4 โ20,000 40,000 5 โ10,000 50,000 6โ12 0 80,000 13 โ20,000 80,000 14 โ40,000 40,000 15 โ60,000 20,000 16 โ80,000 0
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Business, 22.06.2019 06:40
10. which of the following is true regarding preretirement inflation? a. defined-benefit plans provide more inflation protection than defined-contribution plans. b. because of preretirement inflation, possible investment-related growth is increased for defined-contribution plans. c. all types of benefits are designed to cope with preretirement inflation. d. preretirement inflation is generally reflected in the increase in an employee's compensation level over a working career.
Answers: 3
Business, 22.06.2019 11:00
How did the contribution of the goods producing sector to gdp growth change between 2010 and 2011 a. it fell by 0.3%. b. it fell by 2.3%. c. it rose by 2.3%. d. it rose by 0.6%. the answer is b
Answers: 1
Business, 22.06.2019 11:50
After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?
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Business, 22.06.2019 13:40
The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)
Answers: 1
An Australian steel company, ASM International, claims that a savings of 40% of the cost of stainles...
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