An improvement to the process in a childrens shirt factory will cost $1.2 million, but will result
Question:
An improvement to the process in a children’s shirt factory will cost $1.2 million, but will result in net cost savings of $380000 annually for the next ten years.
Required
(a) If funds are worth 12 per cent, what is the NPV for the investment?
(b) If the shirt factory process improvements turn out to cost $1.8 million, are the process changes still worth making?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
a b NPV 2147085 1800000 Positive NPV at 347085 ...View the full answer
Answered By
David Muchemi
I am a professional academic writer with considerable experience in writing business and economic related papers. I have been writing for my clients who reach out to me personally after being recommended to me by satisfied clients.
I have the English language prowess, no grammatical and spelling errors can be found in my work. I double-check for such mistakes before submitting my papers.
I deliver finished work within the stipulated time and without fail. I am a good researcher on any topic especially those perceived to be tough.
I am ready to work on your papers and ensure you receive the highest quality you are looking for. Please hire me to offer my readily available quality service.
Best regards,
4.60+
27+ Reviews
61+ Question Solved
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730369325
7th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond
Question Posted:
Students also viewed these Business questions
-
An improvement to the process in a men's shirt factory will cost $1 million but will result in net cost savings of $300 000 annually for the next 10 years. a. If funds are worth 10 per cent, what is...
-
Ten years ago, based on a pre-tax NPV analysis, Santes Sporting Goods decided to add a new product line. The data used in the analysis were as follows: Discount rate ................. 10% Life of...
-
A monopolist earns $40 million annually and will maintain that level of profit indefinitely, provided that no other firm enters the market. However, if another firm enters the market, the monopolist...
-
Sewing industries is a factory located in Divundu that specialises in assembling mini-sewing electrical machines which are portable and which can be used in close proximity. The business has provided...
-
List the items that go into a project team meeting agenda and tell the purpose of each.
-
Delmar Company produces chocolate pudding. Each carton of chocolate pudding requires 400 grams of cocoa (the unit quantity standard) and 0.04 labour hours (the unit labour standard). During the year,...
-
For the Baumgartner sky dive we had obtained the results for his position as a function of time. There are other questions that could be asked: a. Find the velocity as a function of time for the...
-
A. Sadik Industries must install $1 million of new machinery in its Texas plant. It can obtain a bank loan for 100 percent of the required amount. Alternatively, a Texas investment banking firm that...
-
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company. 2 The comp...
-
a. Prepare an integrated UML class diagram with classes, associations, and multiplicities. b. Using the preceding information and the following attributes list, prepare a listing of the relational...
-
James Denning wants to buy a caravan rental business in the inner Melbourne suburb of Richmond. James spends $1500000 on the purchase of the business including caravans and further advertising and...
-
Emerald Ltd is considering a new machine which will reduce net cash inflow by $38000 in the current year, but increase net cash inflow by $9000, $14000, $18000, $22000, $26000 and $26000 in the...
-
In Fig. E26.11 the battery has emf 35.0 V and negligible internal resistance. R 1 = 5.00 Ω. The current through R 1 is 1.50 A, and the current through R 3 = 4.50 A. What are the...
-
Describe the National Statistics of orthopedic rehabilitation facility and population) compared to New York State/ Local Statistics ---GRAPH is accepted to support statistics). BE consistent --use...
-
1- Study the demand for product X for year 1. Using the multiplicative seasonal forecasting method, calculate the seasonal index for each quarter. Present the computation in the answer. Trimestre Ao...
-
Presented below is information related to equipment owned by Coronado Company at December 31, 2025. Cost $10,080,000 Accumulated depreciation to date 1,120,000 Expected future net cash flows Fair...
-
Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1,980 hours per year Colt can sell up to 728 units of Hero...
-
Suppose ABC Inc. has the following properties: Constant Debt Level of $ 2 1 , 0 0 0 Marginal tax rate of 2 2 . 0 0 % Long - term growth rate of 2 . 0 0 % Cost of debt 4 . 0 0 % What is the Value of...
-
Joe, a student, asks your help in understanding some characteristics of a corporation. Explain each of these to Joe. (a) Separate legal existence. (b) Limited liability of stockholders. (c)...
-
The following information is for Montreal Gloves Inc. for the year 2020: Manufacturing costs Number of gloves manufactured Beginning inventory $ 3,016,700 311,000 pairs 0 pairs Sales in 2020 were...
-
One common objective is quality. Listed below are businesses that regard quality as a strategic objective. For each business, list two performance measures that could help capture the strategic...
-
Determine the missing values indicated by the letters (a) through (h).
-
For each of the following stakeholder groups give an example of an eco-efficiency indicator. a. shareholders b. government c. top management d. site management e. project management f. divisional...
-
True or False. Debt aversion is the reason approximately 26 million Americans do not have any credit history with at least 1 of the 3 primary credit bureaus in the United States. Select one: O True...
-
Use the following assumptions below to answer the following questions. Asking Price: $249,500 Total Sq. Ft.: 2,028 Total Units: 2 Avg. Monthly Rent per Unit: $1,625 Annual Rent Growth: 3.0%...
-
Data table - n Assumptions Original investment (Czech korunas, CZK) Spot exchange rate (CZK/$) Unit demand 0 CZK250,000,000 1 2 3 31.00 Unit sales price Fixed cash operating expenses 28.50 700,000...
Study smarter with the SolutionInn App