Question
please solve both parts correctly with formuals A) The Wessal Karim Corporation is considering installing a new conveyor for materials handling in a ware house.
please solve both parts correctly with formuals
A)
The Wessal Karim Corporation is considering installing a new conveyor for materials handling in a ware house. The conveyor will have an initial cost of Rs. 85,000 and an installation cost of Rs. 6,000. Expected benefits of the conveyor are: (a) Annual labor cost will be reduced by Rs. 17,000, and (b) breakage and other damages from handling will be reduced by Rs. 600 per month. Some of the firms costs are expected to increase as follows: (a) Electricity cost will rise by Rs.200 per month, and (b) annual repair and maintenance of the conveyor will amount to Rs.999. Assume the firm uses the MACRS rules for depreciation in the 5-year property class. No salvage value will be recognized for tax purposes. The conveyor has an expected useful life of 8 years and a projected salvage value of Rs. 4,500. The tax rate is 35 percent. (a) Estimate future cash inflows for the proposed project. (b) Determine the projects NPV at 10 percent. Should the firm buy the conveyor? |
B)
Ten employees work as a group in Altech Manufacturing Company. When the groups weekly production exceeds the standard number of pieces per hour, each worker in the group is paid a bonus for the excess production in addition to wages at hourly rates. The amount of bonus is computed by first determining the percentage by which the groups production exceeds the standard; one-half of this percentage is then applied to a wage rate of $9 to determine hourly bonus rate. The standard rate of production before a bonus can be earned is 200 pieces per hour for total hours worked. Production record for the week
Hours worked | Production | |
Monday | 80 | 17,824 |
Tuesday | 74 | 16,206 |
Wednesday | 80 | 18,048 |
Thursday | 78 | 17,480 |
Friday | 72 | 16,733 |
Required: | ||
1) | Calculate the groups bonus for each day and for the week |
2) | The weeks earnings of each employee |
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