5401

During the month of May, Bennett Manufacturing Company purchases $43,000 of raw materials. The manufacturing overhead totals $27,000 and the total manufacturing costs are $106,000. Assuming a beginning inventory of raw materials of $8,000 and an ending inventory of raw materials of $6,000, what must be the total for direct labour? a. $34,000 b. $38.000 c. $36,000 d. $45,000 CLEAR MY CHOICE exclusive and the firm wo lac mutually be reinvested every 4 years machine are tabulated as follochine B every 3 years. The cash flows associated with each rate is 10% for both machines. 1.a Which of the two machines is the better investment project? Analyze the question under the assumption that whatever machine the company buys has to be reinvested in perpetuity. 1.b Suppose A fits current technology, whereas machine B needs a one-time retooling for the company. These one-off installation costs would be $10,000 today. What is the optimal investment decision now? 1.c Suppose the investment opportunity described above lasts only for 24 years. Recalculate your decision rule for questions 1.a and 1.b. What is the NPV of the optimal investment policy now