Homework Answers
Ans: No, the coffee shop should not buy the Espresso machine because it reduces the present value of the coffee shops's profits over the next 3 years.
As
can be inferred from the photo the Present worth of profits without
machine is higher than the present worth of profits with the
machine.
Add Answer to:
A coffee shop is trying to decide whether or not to buy a new espresso machine....
1. You own a coffee shop and are trying to decide whether to invest in a...
1. You own a coffee shop and are trying to decide whether to invest in a machine that makes, in one step, soy grandé gluten-free, nut-free cinnamon lattes with medium foam (and, of course, no hydrogenated palm oil). It costs $4,000 if purchased today, is expected to last four years, and will generate net cash flows of $1,200 for each of the four years. Assume that the cash inflows occur at the end of each year. A) If the discount...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $470,000 is estimated to result in $196,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $72,000. The press also requires an initial investment in spare parts inventory of $37,000, along with an additional $3,950 in inventory for each succeeding year of the...
What would be the net present value after five years if you buy an espresso machine...
What would be the net present value after five years if you buy an espresso machine today that costs $1,590 and will save you $680 a year on Starcracks expenses? Assume an average return on your savings of 4 percent and that you throw the espresso machine out after 5 years.
A butcher shop knows that it must buy a new machine in 5 years. The machine...
A butcher shop knows that it must buy a new machine in 5 years. The machine costs $15,000. In order to accumulate enough money for the machine, the shop owner decides to deposit a sum of money at the end of each 6 months in an account paying 5% compounded semiannually. How much should each payment be? The deposits form an ordinary annuity because the deposits are made at the end of each period. Therefore, the formula should be used....
Warmack Machine Shop is considering a four-year project to Improve its production efficiency. Buying a new...
Warmack Machine Shop is considering a four-year project to Improve its production efficiency. Buying a new machine press for $560,000 is estimated to result in $235,000 In annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $94,000. The press also requires an Initial Investment in spare parts Inventory of $29.000, along with an additional $3,400 in Inventory for each succeeding year of the...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $460,000 is estimated to result in $190,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $74,000. The press also requires an initial investment in spare parts inventory of $35,000, along with an additional $3,850 in inventory for each succeeding year of the...
10 Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a...
10 Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $390,000 is estimated to result in $148,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $48,000. The press also requires an initial investment in spare parts inventory of $21,000, along with an additional $3,150 in inventory for each succeeding year of...
Please provide correct answer for part B. A manager is trying to decide whether to buy...
Please provide correct answer for part B.
A manager is trying to decide whether to buy one machine or two.
If only one is purchased and demand proves to be excessive, the
second machine can be purchased later. Some sales will be lost,
however, because the lead time for producing this type of machine
is six months. In addition, the cost per machine will be lower if
both are purchased at the same time.
The probability of low demand is...
Should the company buy and install the machine press?
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $480,000 is estimated to result in $202,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $73,000. The press also requires an Initial investment in spare parts inventory of $39,000, along with an additional $4,050 in Inventory for each succeeding year of the...
A manager is trying to decide whether to buy one machine or two. If only one machine is purchased and demand proves to be excessive, the second machine can be purchased later. Some sales would be los...
A manager is trying to decide whether to buy one machine or two. If only one machine is purchased and demand proves to be excessive, the second machine can be purchased later. Some sales would be lost, however, because the lead time for delivery of this type of machine is six months. In addition, the cost per machine will be lower if both machines are purchased at the same time. The probability of low demand is estimated to be 0.20...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $470,000 is estimated to result in $196,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $72,000. The press also requires an initial investment in spare parts inventory of $37,000, along with an additional $3,950 in inventory for each succeeding year of the...
A butcher shop knows that it must buy a new machine in 5 years. The machine costs $15,000. In order to accumulate enough money for the machine, the shop owner decides to deposit a sum of money at the end of each 6 months in an account paying 5% compounded semiannually. How much should each payment be? The deposits form an ordinary annuity because the deposits are made at the end of each period. Therefore, the formula should be used....
Warmack Machine Shop is considering a four-year project to Improve its production efficiency. Buying a new machine press for $560,000 is estimated to result in $235,000 In annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $94,000. The press also requires an Initial Investment in spare parts Inventory of $29.000, along with an additional $3,400 in Inventory for each succeeding year of the...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $460,000 is estimated to result in $190,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $74,000. The press also requires an initial investment in spare parts inventory of $35,000, along with an additional $3,850 in inventory for each succeeding year of the...
10 Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $390,000 is estimated to result in $148,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $48,000. The press also requires an initial investment in spare parts inventory of $21,000, along with an additional $3,150 in inventory for each succeeding year of...
Please provide correct answer for part B.
A manager is trying to decide whether to buy one machine or two.
If only one is purchased and demand proves to be excessive, the
second machine can be purchased later. Some sales will be lost,
however, because the lead time for producing this type of machine
is six months. In addition, the cost per machine will be lower if
both are purchased at the same time.
The probability of low demand is...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $480,000 is estimated to result in $202,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $73,000. The press also requires an Initial investment in spare parts inventory of $39,000, along with an additional $4,050 in Inventory for each succeeding year of the...
A manager is trying to decide whether to buy one machine or two. If only one machine is purchased and demand proves to be excessive, the second machine can be purchased later. Some sales would be lost, however, because the lead time for delivery of this type of machine is six months. In addition, the cost per machine will be lower if both machines are purchased at the same time. The probability of low demand is estimated to be 0.20...
Most questions answered within 3 hours.
-
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 8 minutes ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 58 minutes ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 1 hour ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 3 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 3 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 4 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 5 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 5 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 5 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 5 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 5 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 6 hours ago