{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-09-14T00:02:28-04:00", "answer_date": "2024-09-14 00:02:28", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "10718819", "url": "\/study-help\/questions\/the-elberta-fruit-farm-of-ontario-has-always-hired-transient-10718819", "question_creation_date_js": "2024-09-14T00:02:28-04:00", "question_creation_date": "Sep 14, 2024 12:02 AM", "meta_title": "[Solved] The Elberta Fruit Farm of Ontario has alw | SolutionInn", "meta_description": "Answer of - The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, t | SolutionInn", "meta_keywords": "elberta,fruit,farm,ontario,hired,transient,workers,pick,annual,cherry,crop,janessa", "question_title_h1": "The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information", "question_title": "The Elberta Fruit Farm of Ontario has always hired transient workers to", "question_title_for_js_snippet": "The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit farms The machine is a motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins Ms Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm a Currently, the farm is paying an average of $ 2 3 0 , 0 0 0 per year to transient workers to pick the cherries b The cherry picker would cost $ 6 2 0 , 0 0 0 It would be depreciated using the straight line method and it would have no salvage value at the end of its 8 year useful life c Annual out of pocket costs associated with the cherry picker would be cost of an operator and an assistant, $ 9 0 , 0 0 0 insurance, $ 4 , 0 0 0 fuel, $ 1 6 , 0 0 0 and a maintenance contract, $ 1 4 , 0 0 0 Click here to view Exhibit 1 4 B 1 and Exhibit 1 4 B 2 , to determine the appropriate discount factor using tables Required Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased 2 a Compute the simple rate of return expected from the cherry picker 2 b Would the cherry picker be purchased if Elberta Fruit Farm's required rate of return is 1 2 3 a Compute the payback period on the cherry picker 3 b The Elberta Fruit Farm will not purchase equipment unless it has a payback period of six years or less Would the cherry picker be purchased 4 a Compute the internal rate of return promised by the cherry picker 4 b Based on this computation, does it appear that the simple rate of return is an accurate guide in investment decisions Complete this question by entering your answers in the tabs below Req 3 A Req 3 B Req 4 A Req 4 B Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased Annual savings in cash operating costs", "question_description": "
The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms<\/span>.<\/mo><\/mrow><\/math> Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm:<\/span> <\/div>
a<\/span>.<\/mo><\/mrow><\/math> Currently, the farm is paying an average of $<\/span>2<\/mn>3<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math> per year to transient workers to pick the cherries.<\/span> <\/div>
b<\/span>.<\/mo><\/mrow><\/math> The cherry picker would cost $<\/span>6<\/mn>2<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn>.<\/mo><\/mrow><\/math> It would be depreciated using the straight<\/span>-<\/mo><\/mrow><\/math>line method and it would have no salvage value at the end of its <\/span>8<\/mn>-<\/mo><\/mrow><\/math>year useful life.<\/span> <\/div>
c<\/span>.<\/mo><\/mrow><\/math> Annual out<\/span>-<\/mo><\/mrow><\/math>of<\/span>-<\/mo><\/mrow><\/math>pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $<\/span>9<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math>; insurance, $<\/span>4<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math>; fuel, $<\/span>1<\/mn>6<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mrow><\/math>; and a maintenance contract, $<\/span>1<\/mn>4<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn>.<\/mo><\/mrow><\/math> <\/div>
Click here to view Exhibit <\/span>1<\/mn>4<\/mn><\/mrow><\/math>B<\/span>-<\/mo>1<\/mn><\/mrow><\/math> and Exhibit <\/span>1<\/mn>4<\/mn><\/mrow><\/math>B<\/span>-<\/mo>2<\/mn>,<\/mo><\/mrow><\/math> to determine the appropriate discount factor using tables.<\/span> <\/div>
Required:<\/span><\/div>
Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased.<\/span><\/div>
2<\/mn><\/mrow><\/math>a<\/span>.<\/mo><\/mrow><\/math> Compute the simple rate of return expected from the cherry picker.<\/span> <\/div>
2<\/mn><\/mrow><\/math> b<\/span>.<\/mo><\/mrow><\/math> Would the cherry picker be purchased if Elberta Fruit Farm's required rate of return is <\/span>1<\/mn>2<\/mn>%<\/mo><\/mtext>?<\/mo><\/mrow><\/math> <\/div>
3<\/mn><\/mrow><\/math>a<\/span>.<\/mo><\/mrow><\/math> Compute the payback period on the cherry picker.<\/span> <\/div>
3<\/mn><\/mrow><\/math>b<\/span>.<\/mo><\/mrow><\/math> The Elberta Fruit Farm will not purchase equipment unless it has a payback period of six years or less. Would the cherry picker be purchased?<\/span> <\/div>
4<\/mn><\/mrow><\/math>a<\/span>.<\/mo><\/mrow><\/math> Compute the internal rate of return promised by the cherry picker.<\/span> <\/div>
4<\/mn>b<\/mi>.<\/mo><\/mrow><\/math> Based on this computation, does it appear that the simple rate of return is an accurate guide in investment decisions?<\/span> <\/div>
Complete this question by entering your answers in the tabs below.<\/span><\/div>
Req <\/span>3<\/mn>A<\/mi><\/mrow><\/math> <\/div>
Req <\/span>3<\/mn><\/mrow><\/math>B<\/span> <\/div>
Req <\/span>4<\/mn>A<\/mi><\/mrow><\/math> <\/div>
Req <\/span>4<\/mn><\/mrow><\/math>B<\/span> <\/div>
Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased.<\/span><\/div>
Annual savings in cash operating costs<\/span><\/div><\/span> <\/div><\/div> \"image", "transcribed_text": "", "related_book": { "title": "Accounting Tools for business decision making", "isbn": "978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461", "edition": "4th Edition", "authors": "kimmel, weygandt, kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/107.jpg", "uri": "\/textbooks\/accounting-tools-for-business-decision-making-4th-edition-107", "see_more_uri": "\/textbooks\/business-economics-welfare-economics-3446" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-14 00:02:28", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/industrial-organizational-psychology-understanding-the-workplace\/1-which-of-the-following-is-not-a-benefit-of-2007027", "description": "1. Which of the following is not a benefit of sleep? a. Increased alertness b. Memory processing c. Decreased immunity to disease d. Enhanced mood", "stars": 0 }, { "url": "\/benton-corporation-produces-two-grades-of-wine-from-grapes-that", "description": "Benton Corporation produces two grades of wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called...", "stars": 3 }, { "url": "\/study-help\/questions\/the-elberta-fruit-farm-of-ontario-has-always-hired-transient-10718819", "description": "The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry picking machine that is...", "stars": 3 }, { "url": "\/study-help\/questions\/air-at-38-c-db-18-c-wb-and-sealevel-42545", "description": "Air at 38 C db, 18 C wb, and sea-level pressure is humidified adiabatically with steam. The steam supplied contain 20 percent moisture (quality 80%) at 101.3 kPa. The air is humidified to 60%...", "stars": 3 }, { "url": "\/study-help\/questions\/2-1-the-logistical-drivers-of-supply-chain-include-1002649", "description": "2 . 1 The logistical drivers of supply chain include facilities and transport. How would you relate these to material flow? ( 1 5 ) 2 . 2 Price and quality are key factors in consumer buying...", "stars": 3 }, { "url": "\/study-help\/questions\/2-3-points-determine-the-force-p-required-to-maintain-1024387", "description": "2 3 points Determine the force P required to maintain equilibrium of the 128.6 lb container. Report the force P in units of pounds to one decimal point. Type your answer", "stars": 3 }, { "url": "\/study-help\/questions\/which-function-can-be-used-to-specify-the-width-and-999019", "description": "Which function can be used to specify the width and height of an OpenGL window? glfwCreateWindow, glfwInit, gladLoadGLLoader, or glViewport", "stars": 3 }, { "url": "\/study-help\/questions\/e-develop-appropriate-access-control-protocols-that-provide-an-appropriate-999639", "description": "E.) Develop appropriate access control protocols that provide an appropriate amount of protection while allowing users to continue to operate without denial of service. F.)Justify your access control...", "stars": 3 }, { "url": "\/study-help\/questions\/explain-the-transformation-of-it-service-lines-and-operations-processes-1003709", "description": "Explain the transformation of I.T. service lines and operations processes resulting in transformed business models - do not use other definitions or outsource. In your own words", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/ling-corporation-uses-the-equity-method-to-account-for-its-10718818", "next": "\/study-help\/questions\/the-comparative-balance-sheet-of-del-ray-enterprises-inc-at-10718820" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "The Elberta Fruit Farm of Ontario has always hired transient workers to", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/the-elberta-fruit-farm-of-ontario-has-always-hired-transient-10718819" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }rent_id": "1" } }