Solve questions 1 and 2
Nautical Creations is one of the largest producers of miniature ships in a bottle. An especially complex part of one of the ships requires fecal production woment that is not for other products. The company purchased the equipment warty in 2016 for $100,000. It's now January 1, 2070, and the manager of the Model Ship Division, Jel Foley, is coming in the current equipment with new equipment that is more efficient The following are last year's average per unit manufacturing costs, when production was 15,000 ships 3.5 5.25 Direct matras Director Variable dved Pred overhead 1.75 4.35 The sales representative for the new equipment says. The new equipment will allow direct labor to be reduced by 39.04 peruty tinkes this estimate is accurate, but also know that higher quality of direct material will be necessary with the new equipment, costing 0.25 more per unit. In addition, fixed overhead costs will increase by 51.500 The cost of the new equipment $210,000 and will have a five year useful with an estimated disposal values that time of $10,000. The current will last for the more years will have zero disposal value at that time, but it can be sold immediately for $35,000 Finley expects production to continue at 15,000 ships in each of the next five years REQUIRED USE THE PRESENT VALUE TABLES ON PAGE 113 TO COMPUTENET PRESENT VALUES; BE SURE TO USE THE NEGATIVE SIG WHEN SUBMITTING NEGATIVE NET PRESENT VALUES 1. Autuming a discount rate of 5%, what is the net present Value Nautical Creations uses the current moment to produce the part? Submit Answer Tries / 2. Assuming a discount rate of what is the present Value Mautical Creations tuys the new equipment to produce the part Nautical Creations is one of the largest producers of miniature ships in a bottle. An especially complex part of one of the ships requires fecal production woment that is not for other products. The company purchased the equipment warty in 2016 for $100,000. It's now January 1, 2070, and the manager of the Model Ship Division, Jel Foley, is coming in the current equipment with new equipment that is more efficient The following are last year's average per unit manufacturing costs, when production was 15,000 ships 3.5 5.25 Direct matras Director Variable dved Pred overhead 1.75 4.35 The sales representative for the new equipment says. The new equipment will allow direct labor to be reduced by 39.04 peruty tinkes this estimate is accurate, but also know that higher quality of direct material will be necessary with the new equipment, costing 0.25 more per unit. In addition, fixed overhead costs will increase by 51.500 The cost of the new equipment $210,000 and will have a five year useful with an estimated disposal values that time of $10,000. The current will last for the more years will have zero disposal value at that time, but it can be sold immediately for $35,000 Finley expects production to continue at 15,000 ships in each of the next five years REQUIRED USE THE PRESENT VALUE TABLES ON PAGE 113 TO COMPUTENET PRESENT VALUES; BE SURE TO USE THE NEGATIVE SIG WHEN SUBMITTING NEGATIVE NET PRESENT VALUES 1. Autuming a discount rate of 5%, what is the net present Value Nautical Creations uses the current moment to produce the part? Submit Answer Tries / 2. Assuming a discount rate of what is the present Value Mautical Creations tuys the new equipment to produce the part
