Observation 1 | Observation 2 | Observation 3 | Observation 4 | Range |
0.351 | 0.356 | 0.348 | 0.349 | 0.008 |
0.347 | 0.345 | 0.353 | 0.349 | 0.008 |
0.351 | 0.357 | 0.342 | 0.35 | 0.015 |
0.349 | 0.348 | 0.355 | 0.354 | 0.007 |
0.354 | 0.351 | 0.361 | 0.349 | 0.012 |
Average range (CL for R) =
= (0.008+ 0.008+ 0.015 + 0.007 + 0.012)/5 = 0.010
=> Less than or
equal to 0.015.
29. You are responsible for manufacturing the hinges used on the doors of Airbus A330 airplane....
30. You are responsible for manufacturing the hinges used on the doors of Airbus A330 airplane. Since a close fit is required to ensure the doors stay airtight, statistical quality control is used to ensure the consistent high quality of the hinges. The data from five of yesterdays' samples are shown below. Observation Sample 0.348 0.353 0.351 0.347 0.351 0.349 0.354 0.356 0.345 0.357 0.348 0.351 0.342 0.355 0.361 0.349 0.349 0.35 0.354 0.349 5 What is the value of...
“I’m not sure we should lay out $335,000 for that automated
welding machine,” said Jim Alder, president of the Superior
Equipment Company. “That’s a lot of money, and it would cost us
$91,000 for software and installation, and another $56,400 per year
just to maintain the thing. In addition, the manufacturer admits it
would cost $54,000 more at the end of three years to replace
worn-out parts.”
“I admit it’s a lot of money,” said Franci Rogers, the
controller. “But...
The Elberta Fruit Farm of Ontario always has 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...
Required:
a. What is the net present value of the proposed mining
project?
b. Should the project be accepted?
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase
of equipment to exploit a mineral deposit on land to which the
company has mineral rights. An engineering and cost analysis has
been made, and it is expected that the following cash flows would
be associated with opening and operating a mine in the area:
Cost of new equipment and timbers
$...
Determine the annual net cost savings if the robot is purchased.
(Do not include the $412,000 inventory reduction or the salvage
value in this computation.
Saxon Products, Inc., is investigating the purchase of a robot for use on the company's assembly line. Selected data relating to the robot are provided below: 70 points Cost of the robot Installation and software Annual savings in inventory carrying costs Annual increase in power and maintenance costs Salvage value in 5 years Useful life...
Lukow Products is investigating the purchase of a piece of
automated equipment that will save $100,000 each year in direct
labor and inventory carrying costs. This equipment costs $750,000
and is expected to have a 7-year useful life with no salvage value.
The company’s required rate of return is 7% on all equipment
purchases. Management anticipates that this equipment will provide
intangible benefits such as greater flexibility and higher-quality
output that will result in additional future cash inflows.
Click here...
Saxon Products, Inc., is investigating the purchase of a robot
for use on the company’s assembly line. Selected data relating to
the robot are provided below:
Cost of the robot
$1,400,000
Installation and software
$470,000
Annual savings in labor costs
?
Annual savings in inventory carrying costs
$210,000
Monthly increase in power and maintenance costs
$2,000
Salvage value in 5 years
$86,000
Useful life
5 years
Engineering studies suggest that use of the robot will result in
a savings of...
The Present Value of $1 table:
The Present Value of Ordinary Annuity of $1
table:
The Future Value of $1 table:
The Future Value of Ordinary Annuity of $1:
Recommendation: Water City ▼ (SHOULD/SHOULD
NOT) invest in the project because the payback period is
▼(GREATER THAN/ LESS THAN) the operating life,
the NPV is ▼(NEGATIVE/POSITIVE) , the
profitability index is ▼(GREATER THAN/ LESS THAN)
one, and the ARR and IRR are ▼(GREATER THAN/ LESS
THAN) the company's required rate of...