Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Injection molding machines are needed to be replaced at a company. The list is narrowed down to two options based on various parameters like screw diameter, injection pressure, injection capacity, rate, and screw rpm and so on. Take a look at the specs and make a recommendation. The Cincinnati Milacron Plastic Injection Molding Machine costs $80,000 and the Kawaguchi machine costs $120,000. Based on the capacity of these machines, it can be safely estimated that the revenue for Cincinnati will be $30,000 for year 1 and $41,500 for Kawaguchi. It is also assumed that the capacity could be increased and thereby the revenue by 20% for the next few years. The maintenance costs will be $2,000 and the amount will increase by $5,000 each year for the next few years. It can be assumed that the maintenance is the same for both machines. In talking with other companies who use these machines, these machines are capable of producing products for 5 years before major breakdowns occur. Since this is a rough estimate, you can use straight line depreciation. Tax rate for this company is 40%. Assume a MARR of 15% and calculate the PW of the after tax cash flow. Also, perform a sensitivity analysis on MARR with plus or minus 5%. (Use a DATA TABLE)

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91372141

Have any Question?


Related Questions in Business Economics

How can local the local government help prepare employees

How can local the local government help prepare employees for higher level positions in the organization.

1 out-of-state tuition and fees at the top graduate schools

1. Out-of-state tuition and fees at the top graduate schools of business can be very expensive, but the starting salary and bonus paid to graduates from many of these schools can be substantial. The following data show t ...

Should we be renegotiating nafta yes or no if it is

Should we be renegotiating NAFTA? yes or no? If it is renegotiated, should it be replaced? What reasons would make it better in your point of view? What is the best argument you can make why NAFTA should or should not be ...

In a survey ofnbsp3153nbspadultsnbsp1407nbspsay they have

In a survey of 3153 adults, 1407 say they have started paying bills online in the last year. Construct a? 99% confidence interval for the population proportion. Interpret the results. A? 99% confidence interval for the p ...

You work at patty king home of the cinnamon roll breakfast

You work at Patty King, home of the Cinnamon Roll Breakfast Sandwich, as the manager of the early morning shift. You want to estimate the probability that at least 5 customers enter the store in the next 10 minutes. Woul ...

You are given the following cost You are given the following cost function:

You are given the following cost function: TC=80Q--4Q^2+0.1Q^3  a. Derive the average variable cost, average cost, and marginal cost equations. b. Over what range of output does economies of scale exist? Diseconomies of ...

Whats your answer about the equilibrium change from an

What's your answer about the equilibrium change from an event which decreases both demand and supply? You don't need to provide graph here. Just describe the curve shifts and how the equilibrium price and equilibrium qua ...

How do bribery and corruption influence the economy

How do bribery and corruption influence the economy negatively? Answer and explain three major impacts.

Jen and barry perform a survey of consumers about home meal

Jen and Barry perform a survey of consumers about home meal salad preferences ("fresh" or "fast"). 395 consumers said they prefer to make fresh salad. 426 said they prefer to make salad fast (out of a bag). 331 said they ...

The diameter of ping pong balls manufactured at a large

The diameter of Ping Pong balls manufactured at a large factory are approximately normally distributed with a mean diameter of 1.30 inches and a standard deviation of .04 inches. Use Excel to calculate the probability of ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As