Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 5-13 (book/static) Question Help FootballComm LLC is a manufacturer of devices for football coaches and their coaching staffs that enables them to quickly and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 5-13 (book/static) Question Help FootballComm LLC is a manufacturer of devices for football coaches and their coaching staffs that enables them to quickly and effectively communicate with one another during a game through a wireless sideline headset system. Currently, the company purchases all of the headsets included in their systems from a China-based supplier, but they have experienced a significant decrease in overall headset quality. To correct the problem, the company is considering producing their own headsets in-house. The company estimates that the transition will take place over 12 months. The system is expected to have an eight-year service life and produce savings and expenditures given in the table below. If the firm's MARR is 15%, use the NPW method to calculate the economic worth of producing the headsets in house Click the icon to view the table for the savings and expenditures of the system Click the icon to view the interest factors for discrete compounding when MARR = 15% per year. The economic worth of producing the headsets in house is thousand (Round to the nearest whole number) for football coaches and their coaching staffs that enables them to quickly and effectively communicate with one another during a game through a wireless sideline Bets included in their systems from a China-based supplier, but they have experienced a significant decrease in overall set quality. To correct the problem, the se. The company estimates that the transition will take place over 12 months. The system is expected to have an eight ervice life and produce savings and a to calculate the economic worth of producing the headsets in house More Info - X gs and expenditures of the system discrete compounding when MARR = 15% per year. In house is thousand (Round to the nearest whole number.) $500,000 $2.200.000 In-House Headset Manufacturing Investment Now (building) First year (equipment and facilities) Annual savings in materials and quality inspection Incremental annual expenses Incremental annual income taxes Economic service life Net salvage value $5.000.000 $1,500,000 $800.000 8 years - $1.500.000 hen click Check Answer point Done More Info on WN-Z Single Payment Compound Present Amount Worth Factor Factor (F/P, i, N) (P/F, I, N) 1.1500 0.8696 1.3225 0.7561 1.5209 0.6575 1.7490 0.5718 2.0114 0.4972 Compound Amount Factor (F/A, I, N) 1.0000 2.1500 3.4725 4.9934 6.74240 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, I, N) (P/A, I, N) 1.0000 0-8696 0.4651 16257 0 2880 2.2832 0.2003 2.8550 .1483 3.3522 Capital Recovery Factor (A/P, i, N) 1.1500 0.6151 0.4380 0.3503 0.2983 Done More Info supp TH int 1.3225 1.5209 1.7490 2.0114 0.7561 0.6575 0.5718 0.4972 2.1500 3.4725 4.9934 6.7424 0.4651 0 2880 0.2003 N 1483 1.6257 2.2832 2.8550 3.3522 0.6151 0.4380 0.3503 0.2983 Co own 2.3131 2.6600 3.0590 3.5179 4.0456 0.4323 0.3759 0.3269 0.2843 0.2472 8.7537 11.0668 13.7268 16.7858 20.3037 0.1142 0.0904 0.0729 0.0596 0.0493 3.7845 4.1604 4.4873 4.7716 50188 0.2642 0.2404 0.2229 0.2096 0.1993 Problem 5-13 (book/static) Question Help FootballComm LLC is a manufacturer of devices for football coaches and their coaching staffs that enables them to quickly and effectively communicate with one another during a game through a wireless sideline headset system. Currently, the company purchases all of the headsets included in their systems from a China-based supplier, but they have experienced a significant decrease in overall headset quality. To correct the problem, the company is considering producing their own headsets in-house. The company estimates that the transition will take place over 12 months. The system is expected to have an eight-year service life and produce savings and expenditures given in the table below. If the firm's MARR is 15%, use the NPW method to calculate the economic worth of producing the headsets in house Click the icon to view the table for the savings and expenditures of the system Click the icon to view the interest factors for discrete compounding when MARR = 15% per year. The economic worth of producing the headsets in house is thousand (Round to the nearest whole number) for football coaches and their coaching staffs that enables them to quickly and effectively communicate with one another during a game through a wireless sideline Bets included in their systems from a China-based supplier, but they have experienced a significant decrease in overall set quality. To correct the problem, the se. The company estimates that the transition will take place over 12 months. The system is expected to have an eight ervice life and produce savings and a to calculate the economic worth of producing the headsets in house More Info - X gs and expenditures of the system discrete compounding when MARR = 15% per year. In house is thousand (Round to the nearest whole number.) $500,000 $2.200.000 In-House Headset Manufacturing Investment Now (building) First year (equipment and facilities) Annual savings in materials and quality inspection Incremental annual expenses Incremental annual income taxes Economic service life Net salvage value $5.000.000 $1,500,000 $800.000 8 years - $1.500.000 hen click Check Answer point Done More Info on WN-Z Single Payment Compound Present Amount Worth Factor Factor (F/P, i, N) (P/F, I, N) 1.1500 0.8696 1.3225 0.7561 1.5209 0.6575 1.7490 0.5718 2.0114 0.4972 Compound Amount Factor (F/A, I, N) 1.0000 2.1500 3.4725 4.9934 6.74240 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, I, N) (P/A, I, N) 1.0000 0-8696 0.4651 16257 0 2880 2.2832 0.2003 2.8550 .1483 3.3522 Capital Recovery Factor (A/P, i, N) 1.1500 0.6151 0.4380 0.3503 0.2983 Done More Info supp TH int 1.3225 1.5209 1.7490 2.0114 0.7561 0.6575 0.5718 0.4972 2.1500 3.4725 4.9934 6.7424 0.4651 0 2880 0.2003 N 1483 1.6257 2.2832 2.8550 3.3522 0.6151 0.4380 0.3503 0.2983 Co own 2.3131 2.6600 3.0590 3.5179 4.0456 0.4323 0.3759 0.3269 0.2843 0.2472 8.7537 11.0668 13.7268 16.7858 20.3037 0.1142 0.0904 0.0729 0.0596 0.0493 3.7845 4.1604 4.4873 4.7716 50188 0.2642 0.2404 0.2229 0.2096 0.1993

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Managerial Accounting

Authors: Ronald W Hilton

7th Edition

0073022853, 978-0073022857

Students also viewed these Accounting questions