Answered step by step
Verified Expert Solution
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
(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 savingsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started