Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Please do the posted questions 2, 4, and 5 A machine that produces a certain piece must be turned off by the operator after each

Please do the posted questions 2, 4, and 5

image text in transcribed

image text in transcribedimage text in transcribed A machine that produces a certain piece must be turned off by the operator after each piece is completed. The machine "coasts" for 15 seconds after it is turned off, thus preventing the operator from removing the piece quickly before producing the next piece. An engineer has suggested installing a brake that would reduce the coasting time to 3 seconds. The machine produces 50,000 pieces a year. The time to produce one piece is 1 minute 45 seconds, excluding coasting time. The operator earns $12 an hour and direct costs for operation are $6 an hour. The direct costs are incurred whenever the operator has to work. The brake will require servicing every 475 hours of machine operation. It will take the operator 30 minutes to perform the necessary maintenance and will require $55 in parts and materials. The brake is expected to last 7,500 hours of operation (with proper maintenance) and will have no salvage value. How much could be spent for the brake if the Minimum Attractive Rate of Return is 10% compounded annually? Enter your answer in this format: 1234.56 A manufacturer offers an inventor the choice of two contracts for the exclusive right to manufacture and market the inventor's patented design. Plan 1 calls for an immediate single payment of $56,030. Plan 2 calls for an annual payment of $1,612 plus a royalty of $4.37 for each unit sold. The remaining life of the patent is 10 years. MARR is 10% per year. What must be the uniform annual sales to make Plan 1 and Plan 2 equally attractive? Round your answer. Enter your answer as: 12345 A manufacturing company is considering a capacity expansion investment at the cost of $271,988 with no salvage value. The expansion would enable the company to produce up to 29,335 parts per year and the useful life of the additional capacity is seven years. Each part would generate $4.86 net profit and annual operating and maintenance costs are estimated at $25,372 per year. The market demand for the parts is unlimited, all parts produced will be sold. The MARR of the firm is 10%. The minimum annual production rate to make this investment justifiable is: Enter your answer in this form: 12345.67

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_2

Step: 3

blur-text-image_3

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 Informatics An Information Based Approach To Asset Pricing

Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina

1st Edition

9811246483, 978-9811246487

More Books

Students explore these related Finance questions