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Please help me get these answers! Thanks!! Monty Company manufactures automobile components for the worldwide market. The company has three large production facilities in Virginia,
Please help me get these answers! Thanks!!
Monty Company manufactures automobile components for the worldwide market. The company has three large production facilities in Virginia, New Jersey, and California, which have been operating for many years. Brett Harker, vice president of production, believes it is time to upgrade operations by implementing computer-integrated manufacturing (CIM) at one of the plants Brett has asked corporate controller Connie Carson to gather information about the costs and benefits of implementing CIM. Carson has gathered the following data: Initial equipment cost Working capital required at start-up Salvage value of existing equipment Annual operating cost savings Salvage value of new equipment at end of its useful life Working capital released at end of its useful life Useful life of equipment $8,592,000 859,200 $107,400 $1,202,880 286,400 $. 859,200 10 years Monty Company uses a 12% discount rate. Click here to view the factor table Your answer is incorrect. Try again. Calculate the net present value of Monty's proposed investment in CIM. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to o decimal place, e.g. 58,971. Enter negative amounts using a negative sign preceding the number, e.g. -59,991 or parentheses, e.g. (59,991).) 9,327 Net present value xYour answer is incorrect. Try again. Use Excel or a similar spreadsheet application to calculate the internal rate of return on Monty's proposed investment. (Round internal rate of return to 2 decimal places, eg, 15.25%.) Internal rate of return Your answer is correct. Andrew Burr, manager of the Virginia plant, has been looking over Carson's information and believes she has missed some important benefits of implementing CIM. Burr believes that implementing CIM will reduce scrap and rework costs by $214,800 per year. The CIM equipment will take up less floor space in the factory than the old equipment, freeing up 6,000 square feet of space for a planned new research facility. Initial plans called for renting additional space for the new facility, at a cost of 28.64 per square foot. Calculate a revised net present value and internal rate of return using this additional information. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to o decimal places, e.g. 58,971. Round internal rate of return to 2 decimal places, eg, 15.25%.) Net present value 03 Internal rate of return 11.73%Step by Step Solution
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