Homework Answers
| Capital Investment Cost: | |||||||||||
| Particulars | Amount' | ||||||||||
| 1000 Ft3 Cost | 50,000 | ||||||||||
| Cost Index at the time of Purchase | 1306 | ||||||||||
| Present cost index | 1487 | ||||||||||
| Estimated cost of 2500 f3 Power exchange | 142,324 | ||||||||||
| Annual Labour cost: | |||||||||||
| 1000 Ft3 Labour Cost | 575,500 | ||||||||||
| Cost Index 10 Yrs Ago | 124 | ||||||||||
| Present Cost Index | 188 | ||||||||||
| Present labour cost for 2500 ft3 Power Exchange | 2,181,331 | ||||||||||
| 1000 Ft3 Materials Cost | 2,455,500 | ||||||||||
| Cost Index 3 Yrs Ago | 544 | ||||||||||
| Present Cost Index | 715 | ||||||||||
| Present materials cost for 2500 ft3 Power Exchange | 8,068,394 | ||||||||||
| Cost Inflation calculation: (Yeraly increse in Labour and amaterials cost) | |||||||||||
| Materials CAGR rate | 9.54% | 109.5400% | |||||||||
| Labour CAGR rate | 4.25% | 104.2500% | |||||||||
| Cash Flow For 10 Years | |||||||||||
| Particulars | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Capital Investment | (142,324) | ||||||||||
| Materials Cost | (8,068,394) | (8,838,119) | (9,681,275) | (10,604,869) | (11,616,573) | (12,724,794) | (13,938,740) | (15,268,495) | (16,725,110) | (18,320,685) | |
| Labour Cost | (2,181,331) | (2,274,037) | (2,370,684) | (2,471,438) | (2,576,474) | (2,685,974) | (2,800,128) | (2,919,133) | (3,043,197) | (3,172,532) | |
| Total Cash Out Flow | (142,324) | (10,249,723) | (11,112,154) | (12,051,956) | (13,076,303) | (14,193,042) | (15,410,762) | (16,738,861) | (18,187,621) | (19,768,298) | (21,493,208) |
Add Answer to:
2. A steel bar manufacturing plant is planning to upgrade the production capacity of its plant...
A large chemical plant is being planned with the capacity to produce 3 million pounds (lb.)...
A large chemical plant is being planned with the capacity to produce 3 million pounds (lb.) of product annually. Raw-materials costs for the product are $0.45/lb., labor costs are $0.40/lb., and utility costs are $0.25/lb. Overhead costs are 75% of the labor costs. (a) If the company desires a profit equal to 20% of the total product cost, estimate the selling price per pound of product. (b) A similar plant with a capacity of 1.8 million lb. of product was...
5-31 Teléfono Mexico is expanding its facilities to serve a new manufacturing plant. The new plant...
5-31 Teléfono Mexico is expanding its facilities to serve a new manufacturing plant. The new plant will require 2000 telephone lines this year, and another 2000 lines after expansion in 10 years. The plant will operate for 30 years. Option 1 Provide one cable now with capacity to serve 4000 lines. The cable will cost $20,000 and annual maintenance costs will be $1500. Option 2 Provide a cable with capacity to serve 2000 lines now and a second cable to...
Can you help? ON Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000...
Can you help? ON Company manufactures windows. Its manufacturing plant has the capacity to produce 12,000 windows each month. Current production and sales are 10,000 windows per month. The company normally charges $250 per window. Cost information for the current activity level is as follows: Variable Costs (per unit) Direct Material $60 Direct Manufacturing labour $75 Variable Costs (material handling, quality control, etc) $15 Fixed manufacturing costs $250,000 Fixed marketing costs $400,000 ON has just received a special one-time-only order...
Donovan Resources Group has been in its plant facility for 15 years. Although the plant is...
Donovan Resources Group has been in its plant facility for 15 years. Although the plant is quite functional, numerous repair costs are incurred to maintain it in sound working order. The company’s plant asset book value is currently $800,000, as indicated below. Original cost $1,200,000 Accumulated depreciation 400,000 Book value $800,000 During the current year, the following expenditures were made to the plant facility. (a) Because of increased demands for its product, the company increased its plant capacity by building...
A 1000 gallon tank for water storage costs $650 in 2017. Estimate what a 5000 gallon...
A 1000 gallon tank for water
storage costs $650 in 2017. Estimate what a 5000 gallon tank costs
in 2007.
CEPCI Values Annual Index: 2006 499.6 2007 525.4 Equipment/Facility 2008 575.4 Blower, centrifugal 2009 521.9 2010 550.8 Drer, drum, single atmospheric TABLE 2-1 Example Power-Sizing Exponent Values Power-Sizing Exponent Size Range 10,000 100,000 ft3/min 200-2100 hp 500-7000 f2 10-100 ft2 20,000-70,000 ft2/min 10-1500 f2 0.05-20 million ga/day 5-20 bp 100-1000 gal 100-40,000 gal Compressor Crystallizer, vacuum batch 0.32 0.37 2010...
Widget Manufacturer A plant produces several related models of widgets. Production of each model involves the...
Widget Manufacturer A plant produces several related models of widgets. Production of each model involves the same machinery. The plant produces each model in separate production runs. Each production run has significant setup costs and the cost per setup is the same for every model. Also, the assembly of each unit requires hand labor (direct labor). The following costs were incurred during a recent year: a) direct labor costs. b) costs of placing orders to procure parts. c) costs of...
The Goal One Company manufactures windows. Its manufacturing plant has the capacity to produce 20,000 windows...
The Goal One Company manufactures windows. Its
manufacturing plant has the capacity to produce 20,000 windows each
month. Current production and sales are 15,000 windows per month.
The company normally charges $150 per window.
Goal One has just received a special one-time order
for 5,000 windows at $125 per window. Accepting the special order
would not affect the company's regular business or it's fixed
costs. Goal One makes windows die its existing customers in batch
sizes I'd 59 windows (300...
Scenario Cartech Manufacturing is engaged in the production of replacement parts for automobiles. One plant specializes...
Scenario
Cartech Manufacturing is engaged in the production of
replacement parts for automobiles. One plant specializes in the
production of two parts: Part 271 and Part 342. Part 271 produces
the highest volume of activity, and for many years it was the only
part produced by the plant. Five years ago, Part 342 was added.
Part 342 was more difficult to manufacture and required special
tooling and setups. Profits increased for the first three years
after the addition of the...
5. (7 points) King Donovan Resources Group has been in its plant facility for 15 years....
5. (7 points) King Donovan Resources Group has been in its plant facility for 15 years. Although the plant is quite functional, numerous repair costs are incurred to maintain it in sound working order. The company's plant asset book value is currently $800,000, as indicated below. Original cost $1,200,000 Accumulated depreciation 400,000 Book value $ 800,000 During the current year, the following expenditures were made to the plant facility. (a) Because of increased demands for its product, the company increased...
(7 points) King Donovan Resources Group has been in its plant facility for 15 years. Although...
(7 points) King Donovan Resources Group has
been in its plant facility for 15 years. Although the plant is
quite functional, numerous repair costs are incurred to maintain it
in sound working order. The company's plant asset book value is
currently $800,000, as indicated below. Original cost $1,200,000
Accumulated depreciation 400,000 Book value $ 800,000 During the
current year, the following expenditures were made to the plant
facility. (a) Because of increased demands for its product, the
company increased its...
5-31 Teléfono Mexico is expanding its facilities to serve a new manufacturing plant. The new plant will require 2000 telephone lines this year, and another 2000 lines after expansion in 10 years. The plant will operate for 30 years. Option 1 Provide one cable now with capacity to serve 4000 lines. The cable will cost $20,000 and annual maintenance costs will be $1500. Option 2 Provide a cable with capacity to serve 2000 lines now and a second cable to...
A 1000 gallon tank for water
storage costs $650 in 2017. Estimate what a 5000 gallon tank costs
in 2007.
CEPCI Values Annual Index: 2006 499.6 2007 525.4 Equipment/Facility 2008 575.4 Blower, centrifugal 2009 521.9 2010 550.8 Drer, drum, single atmospheric TABLE 2-1 Example Power-Sizing Exponent Values Power-Sizing Exponent Size Range 10,000 100,000 ft3/min 200-2100 hp 500-7000 f2 10-100 ft2 20,000-70,000 ft2/min 10-1500 f2 0.05-20 million ga/day 5-20 bp 100-1000 gal 100-40,000 gal Compressor Crystallizer, vacuum batch 0.32 0.37 2010...
Widget Manufacturer A plant produces several related models of widgets. Production of each model involves the same machinery. The plant produces each model in separate production runs. Each production run has significant setup costs and the cost per setup is the same for every model. Also, the assembly of each unit requires hand labor (direct labor). The following costs were incurred during a recent year: a) direct labor costs. b) costs of placing orders to procure parts. c) costs of...
The Goal One Company manufactures windows. Its
manufacturing plant has the capacity to produce 20,000 windows each
month. Current production and sales are 15,000 windows per month.
The company normally charges $150 per window.
Goal One has just received a special one-time order
for 5,000 windows at $125 per window. Accepting the special order
would not affect the company's regular business or it's fixed
costs. Goal One makes windows die its existing customers in batch
sizes I'd 59 windows (300...
Scenario
Cartech Manufacturing is engaged in the production of
replacement parts for automobiles. One plant specializes in the
production of two parts: Part 271 and Part 342. Part 271 produces
the highest volume of activity, and for many years it was the only
part produced by the plant. Five years ago, Part 342 was added.
Part 342 was more difficult to manufacture and required special
tooling and setups. Profits increased for the first three years
after the addition of the...
5. (7 points) King Donovan Resources Group has been in its plant facility for 15 years. Although the plant is quite functional, numerous repair costs are incurred to maintain it in sound working order. The company's plant asset book value is currently $800,000, as indicated below. Original cost $1,200,000 Accumulated depreciation 400,000 Book value $ 800,000 During the current year, the following expenditures were made to the plant facility. (a) Because of increased demands for its product, the company increased...
(7 points) King Donovan Resources Group has
been in its plant facility for 15 years. Although the plant is
quite functional, numerous repair costs are incurred to maintain it
in sound working order. The company's plant asset book value is
currently $800,000, as indicated below. Original cost $1,200,000
Accumulated depreciation 400,000 Book value $ 800,000 During the
current year, the following expenditures were made to the plant
facility. (a) Because of increased demands for its product, the
company increased its...
Most questions answered within 3 hours.
-
Question 1: For each of the sections in this part, the
competitive market for labor is...
asked 1 minute ago -
A runaway train car that has a mass of 1.71e+4 kg travels at a
speed of...
asked 3 minutes ago -
Lincoln, Inc., which uses a volume-based cost system, produces
cat condos that sell for $170 each....
asked 8 minutes ago -
Q23 Suppose H0 is left-tailed and tTest = -2.26. (Note tTest not
zTest). The tTest value...
asked 4 minutes ago -
On November 3, the spot price for cotton was $0.81/lb., and the
February futures price was...
asked 9 minutes ago -
Using Python:
A Prime number is an integer greater than 1 that cannot be
formed by...
asked 31 minutes ago -
Read about Cokes strategy in Africa in the article below and
discuss the ethics of selling...
asked 18 minutes ago -
What made of a 40.0% NaOH solution should be diluted to 1.00 L
with water to...
asked 18 minutes ago -
Draw and describe the results of the Meselson-Stahl experiments
showing that DNA replication followed the Semi-conservative...
asked 23 minutes ago -
Deeply Explain the Following Web Development Softwares Along
With the Reasons to Choose them For Development....
asked 20 minutes ago -
essay question: why was Hurricane Katrina so devastating? How
and why did the levees break in...
asked 25 minutes ago -
Why might it be necessary to reduce consumer spending in order
to attain faster economic growth?...
asked 34 minutes ago