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For the partial inhouse alternative the wage of 10.000 is annual. Can you solve the a,b and c seperately? There is no selling price. Purpose

For the partial inhouse alternative the wage of 10.000 is annual. Can you solve the a,b and c seperately? image text in transcribed
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There is no selling price. Purpose is to minimize the cost. We need to find brake even points.
Question-2 (21 pts, 7+7+7) In a project you have 3 alternatives with the following costs: Complete inhouse: The initial cost is 50.000 $. A full-time engineer will be hired at an annual wage of 26.000 6. Cost of production is 10 per product. Partial inhouse: Partial equipment has an initial cost of 35.000 . A part-time engineer has a wage of 10.000 . Due to partial outsourcing the production cost is 43 t per product. Outsourcing: You don't have initial cost and you don't hire any engineer. You outsource all production and the cost is 120 per product. This project has a life of 6 years. If MARR is 10% determine the number of products that should be produced each year to justify: a) the complete inhouse b) the partial inhouse c) If you plan to produce 300 products, which method is the best economically? 10% n 1 2 3 4 5 6 7 8 9 10 11 TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% Single Payments Uniform Series Payments Arithmetic Gradients Compound Present Sinking Compound Capital Present Gradient Gradient Amount Worth Fund Amount Recovery Worth Present Worth Uniform Series F/P P/F A/F FA A/P P/A P/G A/G 1.1000 0.9091 1.00000 1.0000 1.10000 0.9091 1.2100 0.8264 0.47619 2.1000 0.57619 1.7355 0.8264 0.4762 1.3310 0.7513 0.30211 3.3100 0.40211 2.4869 2.3291 0.9366 1.4641 0.6830 0.21547 4.6410 0.31547 3.1699 4.3781 1.3812 1.6105 0.6209 0.16380 6.1051 0.26380 3.7908 6.8618 1.8101 1.7716 0.5645 0.12961 7.7156 0.22961 4.3553 9.6842 2.2236 1.9187 0.5132 0.10541 9.4872 0.20541 1.8684 12.7631 2.6216 2.1436 0.4665 0.08744 11.4359 0.18744 5.3349 16.0287 3.0045 2.3579 0.4241 0.07364 13.5795 0.17364 5.7590 19.4215 3.3724 03855 0.06275 15.9374 0.16275 6.1446 22 8913 3.7255 2.8531 0.3505 0.05396 18.5312 0.15396 6.4951 26.3963 4.0641 2.5937 Question-2 (21 pts, 7+7+7) In a project you have 3 alternatives with the following costs: Complete inhouse: The initial cost is 50.000 $. A full-time engineer will be hired at an annual wage of 26.000 6. Cost of production is 10 per product. Partial inhouse: Partial equipment has an initial cost of 35.000 . A part-time engineer has a wage of 10.000 . Due to partial outsourcing the production cost is 43 t per product. Outsourcing: You don't have initial cost and you don't hire any engineer. You outsource all production and the cost is 120 per product. This project has a life of 6 years. If MARR is 10% determine the number of products that should be produced each year to justify: a) the complete inhouse b) the partial inhouse c) If you plan to produce 300 products, which method is the best economically? 10% n 1 2 3 4 5 6 7 8 9 10 11 TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% Single Payments Uniform Series Payments Arithmetic Gradients Compound Present Sinking Compound Capital Present Gradient Gradient Amount Worth Fund Amount Recovery Worth Present Worth Uniform Series F/P P/F A/F FA A/P P/A P/G A/G 1.1000 0.9091 1.00000 1.0000 1.10000 0.9091 1.2100 0.8264 0.47619 2.1000 0.57619 1.7355 0.8264 0.4762 1.3310 0.7513 0.30211 3.3100 0.40211 2.4869 2.3291 0.9366 1.4641 0.6830 0.21547 4.6410 0.31547 3.1699 4.3781 1.3812 1.6105 0.6209 0.16380 6.1051 0.26380 3.7908 6.8618 1.8101 1.7716 0.5645 0.12961 7.7156 0.22961 4.3553 9.6842 2.2236 1.9187 0.5132 0.10541 9.4872 0.20541 1.8684 12.7631 2.6216 2.1436 0.4665 0.08744 11.4359 0.18744 5.3349 16.0287 3.0045 2.3579 0.4241 0.07364 13.5795 0.17364 5.7590 19.4215 3.3724 03855 0.06275 15.9374 0.16275 6.1446 22 8913 3.7255 2.8531 0.3505 0.05396 18.5312 0.15396 6.4951 26.3963 4.0641 2.5937

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