1. Compuner iupport serices cumendy cont MAC corporation Stoo,co0 per yea. Aent Wortd Conpuler uervicet has propoied to provide thene lame compuber supodr servicet to AlC corporition for 450,000 per year, There is a one-time cort of 5T T.00 ansocated weh tranderning the files and training staft a. What is the inveitment amount? Arowen Total investment = 53,000 b. What are the annual benefts? Arower: C. What ane the total peefits over flive years? 5 how the formula and wour work. Aniwer: 5 ins , 000 d. Whar is the ROl over five veas? Show the formula and pour work. AOl- 33313 e. What is the Pupback Beried? thow the formuliand your work. Pryback Perind 127 vein 2. Mary White is eamirius two expasson opportunites for ker tecal sore. * One attecrutive is to loend 530000 to open a new itore on Main sovet. The Main sovet ibore is espected to penerate profits of 52,500 the first year, $5,000 the second year, and 51,500 in each ol yean 3 thebuth 10 - The second atemabive is to open a new sore at the moll The mal location wil coot $60,000 to open and is espected bo peneriate profes of 38 , 000 each yeie for 10 year. 2a. Calculahe the nol and paytadk period for each altemative. show your work. Main Gereed inveitenens Altemation invectinent =5 Total profita is $ Net beneftes as 5 Rot = Papback heriod. vears Mall ineviment Alernition invectment 5 Total profits is 5 Net benefia = $ AOt = Popbuck Feriod. vears 2a. In your opinion, which thould Mary select? Ghe pour neasoring based on the andipis? Arswer 3. ABC Manudacturitg Conpany is lobking an two inventment apelots to reduce cobts et manufacture a new omepter alted Tech-20. Aternative 1 is to gtar in their carrest boctioe and the prodaction focllity to Chile that lowers west per unit due to lower lator costs. Mnalyme the folluwint informution to thike a dection. 3. ABC Manufacturing Company is looking at two ievestment options to reduce costs to manulatture a new computer called Tech-20. Noernative 1 is to stay in their curnet locatim and purchase a new machine that lowers the cost per unit through efticiency. Ahernative 2 is to mowe the production facility to Chlle that lowers coet per urit doe to lower laber costa Analyne the following indormation to muke a decisicet 3a. Caloulste Total Investment, Return on lrvestmene. Paybuck Period. Breabeven Volume and Areakeveo investmene, Include the appropriate formulas for fach calculation. fall the highlighed boues Whould be irest 30. Complete a Breakeven Analpid by calculating the Breakeven Volume and Breakeven investmere. Include the agprogriahe formulas for each calculation (all the highlghted boses thould be tifed) 3a. Calculate Total Imwestment, Return on lnvestment, Payback Period, Ereakeven Wolume and Breakeven inwestment, Include the appropriate formulas for each calculation. (all the highlighted boues thould be filed] 3b. Complete a Breakeven Analysis by calculating the Breakeven Volume and Breakewen investment. Include the appropriate formulas for each calculation. (all the highlighted boues should be filled) 3c. Based oe your analysis, which investment would yoe suggest ABC Manufacturinat Coenpany to choose? Why? Answer 3d. In your openion, why do you think ROl and breakeven analysis are important when choosins between two investments rather than just looking at total savings minus total costos
