Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $76,000 per year. A...

Question

Question

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $76,000 per year.

A recently hired chief executive officer wants to reduce future production costs to improve the companys earnings, thereby i

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

1. Present worths of savings = -20000 + (76000 - 51000)*(P/F, 13%,1) + (76000 - 50000)*(P/A, 13%,4)*(P/F, 13%,1)

= -20000 + 25000*(P/F, 13%,1) + 26000 *(P/A, 13%,4)*(P/F, 13%,1)

= -20000 + 25000*0.884956 + 26000 *2.974471*0.884956

= 70563.07 ~ 70563

2.

Let cost decrease by A per year from EOY 5 to EOY 15, then

84000 + 58000 * (P/A, 12%,4) = A *(P/A, 12%,11) * (P/F,12%,4)

84000 + 58000 * 3.037349 = A *5.937699 * 0.635518

A = 260166.24 / 3.773515 = 68945.33 ~ 68945

Pls comment if you think final solution is wrong or you require further explanation

Add a comment

Answer 2

Similar Homework Help Questions

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $76,000 per year. A...

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $76,000 per year. A clever industrial engineer found that by spending $16,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $58,000 next year and $50,000 in years 2 through 5-Using an interest rate of 8% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined to...
Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $76,000 per year. A...

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $76,000 per year. A clever industrial engineer found that by spending $16,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $58,000 next year and $50,000 in years 2 through 5-Using an interest rate of 8% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined to...
Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $83,000 per year. A...

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $83,000 per year. A clever industrial engineer found that by spending $18,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $56,000 next year and $54,000 in years 2 through 5. Using an interest rate of 12% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined...

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $77,000 per year. A...

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $77,000 per year. A clever industrial engineer found that by spending $16,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $57,000 next year and $50,000 in years 2 through 5. Using an interest rate of 9% per year, determine the present worth of the savings due to the reconfiguration.
Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $74,000 per year. A...

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $74,000 per year. A clever industrial engineer found that by spending $17,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $56,000 next year and $51,000 in years 2 through 5. Using an interest rate of 14% per year, determine the present worth of the savings due to the reconfiguration.
Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $74,000 per year. A...

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $74,000 per year. A clever industrial engineer found that by spending $16,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $55,000 next year and $57,000 in years 2 through 5. Using an interest rate of 8% per year, determine the present worth of the savings due to the reconfiguration.

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $78,000 per year. A...

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $78,000 per year. A clever industrial engineer found that by spending $16,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $55,000 next year and $50,000 in years 2 through 5. Using an interest rate of 8% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined...
Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $76,000 per year. A clever industrial engineer found that by spending $16,000 now to reconfig...

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $76,000 per year. A clever industrial engineer found that by spending $16,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $53,000 next year and $52,000 in years 2 through 5. Using an interest rate of 9% per year, determine the present worth of the savings due to the reconfiguration. The present worth of the savings is determined...
0 You skipped this question in the previous attempt. Costs associated with the manufacture of miniature...

0 You skipped this question in the previous attempt. Costs associated with the manufacture of miniature high-sensitivity plezoresistive pressure transducers is $82,000 per year. A clever industrial engineer found that by spending $18,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $56,000 next year and $54,000 in years 2 through 5. Using an interest rate of 8% per year, determine the present worth of the savings due to the...

please I want only the answer without the solution please Costs associated with the manufacture of...

please I want only the answer without the solution please Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $75,000 per year. A clever industrial engineer found that by spending $16.000 now to reconfigure the production line and reprogram two of the robotic arms. the cost will go down to $53,000 next year and $56 000 in years 2 through 5 Using an interest rate of 12% per year, determine the present worth of the savings due...

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $76,000 per year. A...

Homework Answers

Add Answer to:
Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is $76,000 per year. A...

Post as a guest

Earn Coins