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please add explanation for each one 4. Amazon is considering automating its production line at a cost of $40,000 to acquire the necessary equipment. The

please add explanation for each one
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4. Amazon is considering automating its production line at a cost of $40,000 to acquire the necessary equipment. The annual cost savings are expected to be $8,000 for 14 years. The firm requires a 20% rate of return. Ignore income taxes. (2pts each) 3. What is the intemal rate of return on this investment? a. Less than 20% b. Equal to 20% c. More than 20% d Cannot be determined The net present value for this investment is a. Positive b. Zero c. Negative d Cannot be determined 5. Earty, Inc. has chosen four potential investment projects. Listed below are some relevant data on these projects Project Investment Net Present Value 1 $125,000 $62,500 2 150,000 45,000 375,000 $2,500 4 112,500 45,000 Use the profitability index to rank these investments in terms of preference. a. 1.3.2.4 b. 2. 1,4,3 c. 1.2.3.4 d. 3.1, 4.2 A value chain is the sequence of business processes in which a Costs are determined with activity-based principles b. Value is added to a product or service c. All non-value-added activities are eliminated d Managers determine prices An organization's value chain can incorporate its LOwn customers IL Own suppliers III. Customers' customers IV. Suppliers' suppliers a. I and II b. I and III c. II and IV 6. 7. 8. 10. Implementing a wireless network to reduce non-value added paperwork and improve inventory tracking would result most directly from 2. Target costing b. Kaizen costing c. Value chain analysis d. Life cycle budgeting Which of the following activities is not typically considered to be part of a manufacturing organization's value chain? Making journal entries b. Handling customer complaints c. Designing and engineering new products d Manufacturing products Which of the following activities is unique to a manufacturing organization's value chain? a. Distribution management b. Customer service c. Product manufacture d. Marketing and sales Which of the following immediately follows product and process design in the typical manufacturing value chain? a Research and development b. Supplier and raw material management c. Distribution management d Marketing and sales Managers often break activities into four groups for value chain analysis. Which of the following is not an activity category among those four groups? 2. Unnecessary activities that cannot be eliminated b. Necessary activities that could be changed to improve the process c. Necessary activities that cannot be improved upon at this time d. Unnecessary activities that can be eliminated quickly 11. 12

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