Factor company is planning to add a new product to its line. to manufacture this product, the company needs to buy a new machine at a $720,000 cost with an expected four-year life and a $44,000 salvage value. all sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. additional information includes the following. (pv of $1, fv of $1, pva of $1, and fva of $1) (use appropriate factor(s) from the tables provided. round pv factor value to 4 decimal places.) expected annual sales of new product $ 2,440,000 expected annual costs of new product direct materials 504,000 direct labor 696,000 overhead (excluding straight-line depreciation on new machine) 576,000 selling and administrative expenses 184,000 income taxes 30 % required: 1. compute straight-line depreciation for each year of this new machine’s life. 2. determine expected net income and net cash flow for each year of this machine’s life. 3. compute this machine’s payback period, assuming that cash flows occur evenly throughout each year. 4. compute this machine’s accounting rate of return, assuming that income is earned evenly throughout each year. 5. compute the net present value for this machine using a discount rate of 7% and assuming that cash flows occur at each year-end. (hint: salvage value is a cash inflow at the end of the asset’s life.)

< back to assignment attempts: 1 1 keep the highest: 1 / 2 2. determining opportunity cost juanita is deciding whether to buy a suit that she wants, as well as where to buy it. three stores carry the same suit, but it is more convenient for juanita to get to some stores than others. for example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the suit: store travel time each way price of a suit (minutes) (dollars per suit) local department store 15 102 across town 30 88 neighboring city 60 65 juanita makes $42 an hour at work. she has to take time off work to purchase her suit, so each hour away from work costs her $42 in lost income. assume that returning to work takes juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. as you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. complete the following table by computing the opportunity cost of juanita's time and the total cost of shopping at each location. store opportunity cost of time price of a suit total cost (dollars) (dollars per suit) (dollars) local department store 102 across town 88 neighboring city 65 assume that juanita takes opportunity costs and the price of the suit into consideration when she shops. juanita will minimize the cost of the suit if she buys it from the . grade it now save & continue continue without saving

What is the advantage of developing criteria for assessing the effectiveness of business products and processes? a. assessment criteria are answers. b.assessment criteria are inexpensive. c.assessment criteria provide you with a list of relevant things to measure. d.assessment criteria provide you with a list of people to contact to learn more about process mentoring.

Jimmy's delicatessen sells large tins of tom tucker's toffee. the deli uses a periodic review system, checking inventory levels every 88 days, at which time an order is placed for more tins. order lead time is 22 days. daily demand is a constant 1515 tins, so average demand during the reorder period and order lead time (1010 days) is 150150 tins. draw a sawtooth diagram. assume that the beginning inventory level is equal to the restocking level and the desired service level is 99.9%. what is the safety stock level? (hint: look at the formula for calculating restocking level.) what is the average inventory level? the safety stock level is average inventory level is __chart: time (10,20,30), tins (0,150) lines touching both axisthe safety stock level is 0 tinsthe average inventory level is 75 tins