Answered step by step
Verified Expert Solution
Question
1 Approved Answer
This question iu pomis) possible The Atlanta Foodbank is a nonprofit organization that receives donations of food and distributes this food to appropriate charitable organizations.
This question iu pomis) possible The Atlanta Foodbank is a nonprofit organization that receives donations of food and distributes this food to appropriate charitable organizations. (Click the icon to view additional information.) He used this wait time data and the following assumptions to determine the financial benefit of buying a second shrinkwrap machine. i (Click the icon view the assumptions.) Read the requirements Requirement 1. What is the expected net cash inflow per year from purchasing a second shrinkwrap machine (i.e., how much cost could be saved each year by eliminating the wait time)? The expected net cash inflow (cost savings) per year of eliminating employee wait time is Requirement 2. What is the payback period of the second shrinkwrap machine? Round your answer to the nearest two decimal places. First enter the formula, then calculate the payback period. (Round your answer to two decimal places.) Initial investment + Expected annual net cash inflow = Payback period + years Requirement 3. What would the expected net cash inflow per year be if the hourly wage rate used for this analysis was increased by 20% to reflect the cost of employee benefits? If the employee wage rate increased 20%, the net cash inflow (cost savings) per year of eliminating employee wait time is Requirement 4. What is the payback period of the second shrinkwrap machine when the increased wage rate is used to calculate the expected net cash inflow per year? (Round your answer to two decimal places.) The payback period of the second shrinkwrap machine when the increased wage rate is used is years. Requirement 5. Did the payback period using the increased hourly wage rate increase or decrease as compared to the original payback period using the hourly rate without any benefits included? Explain. The payback period using the increased hourly wage rate as compared to the original payback period using the hourly rate without any benefits included because there are less costs each year and the annual cost savings is less than the initial investment in the project. there are less costs each year and the annual cost savings is more than the initial investment in the project. there are more costs each year and the annual cost savings is less than the initial investment in the project. there are more costs each year and the annual cost savings is more than the initial investment in the project. Requirements 1. 2. 3. What is the expected net cash inflow per year from purchasing a second shrinkwrap machine (i.e., how much cost could be saved each year by eliminating the wait time)? What is the payback period of the second shrinkwrap machine? Round your answer to the nearest two decimal places. What would the expected net cash inflow per year be if the hourly wage rate used for this analysis was increased by 20% to reflect the cost of employee benefits? What is the payback period of the second shrinkwrap machine when the increased wage rate is used to calculate the expected net cash inflow per year? Round your answer to the nearest two decimal places. Did the payback period using the increased hourly wage rate increase or decrease as compared to the original payback period using the hourly rate without any benefits included? Explain. 4. 5. Print Done Assumptions = = Cost of new shrinkwrap machine plus installation = $20,000 Average wait time per warehouse picker per day = 60 minutes Number of warehouse pickers = 10 Hourly wage of warehouse personnel = $20.00 Foodbank is open 5 days a week, 52 weeks a year, except for 10 holidays 5 Expected useful life of machine Expected salvage value = $1,900 10 years . Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started