Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(a) Using Cumulative Cash Flow data (Line 47), determine the discounted payback period . (b) Determine the discounted return on investment, ROI. (c) Using Discount

image text in transcribedimage text in transcribedimage text in transcribed

(a) Using Cumulative Cash Flow data (Line 47), determine the discounted payback period.

(b) Determine the discounted return on investment, ROI.

(c) Using Discount Cash Flow data (Line 46), draw the cash flow diagram for this application.

For the Plastic Bowls Production work cell the following spreadsheet was developed for the justification for automating the process. Inventory Change 7. Inventory Change $0$0$0$0$0$0 Operating Costs 8.DirectLabor9.InddirectLabor10.MaintenanceCosts11.ToolingCosts12.Materials&Supplies13.Inspection14.AssemblyCost15.Scrap&Rework16.Downtime17.Utilities18.Taxes&Ins19.Subcontract20.Safety21.Programming22.ProcessImprovements23.Other24.TotalOperatingCost$47,693($4,000)$0$0$300$1,300$0$2,500$0($150)$0$0$0($5,000)($2,700)$0$39,943$95,386($9,000)$0$0$300$1,300$0$6,000$12,000($300)$0$0$0($1,500)$1,500$0$105,686$95,386($9,000)$0$0$300$1,300$0$6,000$12,000($300)$0$0$0($1,500)$1,500$0$105,686$95,386($9,000)$0$0$300$1,300$0$9,500$12,000($300)$0$0$0($1,500)$1,500$0$109,186$95,386($9,000)$0$0$300$1,300$0$9,500$12,000($300)$0$0$0($1,500)$1,500$0$109,186$95,386($9,000)$0$0$300$1,300$0$9,500$12,000($300)$0$0$0($1,500)$1,500$0$109,186 * Numbers in parentheses indicate expenditures and capital investments. All other dollars values are dollar savings. For the Plastic Bowls Production work cell the following spreadsheet was developed for the justification for automating the process. Inventory Change 7. Inventory Change $0$0$0$0$0$0 Operating Costs 8.DirectLabor9.InddirectLabor10.MaintenanceCosts11.ToolingCosts12.Materials&Supplies13.Inspection14.AssemblyCost15.Scrap&Rework16.Downtime17.Utilities18.Taxes&Ins19.Subcontract20.Safety21.Programming22.ProcessImprovements23.Other24.TotalOperatingCost$47,693($4,000)$0$0$300$1,300$0$2,500$0($150)$0$0$0($5,000)($2,700)$0$39,943$95,386($9,000)$0$0$300$1,300$0$6,000$12,000($300)$0$0$0($1,500)$1,500$0$105,686$95,386($9,000)$0$0$300$1,300$0$6,000$12,000($300)$0$0$0($1,500)$1,500$0$105,686$95,386($9,000)$0$0$300$1,300$0$9,500$12,000($300)$0$0$0($1,500)$1,500$0$109,186$95,386($9,000)$0$0$300$1,300$0$9,500$12,000($300)$0$0$0($1,500)$1,500$0$109,186$95,386($9,000)$0$0$300$1,300$0$9,500$12,000($300)$0$0$0($1,500)$1,500$0$109,186 * Numbers in parentheses indicate expenditures and capital investments. All other dollars values are dollar savings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: V.K. Gopal

1st Edition

9788174467461

More Books

Students also viewed these Accounting questions

Question

b. Buffer first for bad-news messages.

Answered: 1 week ago