Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The initial cost of one process was $130,000 with annual costs of $47,000.  Revenues are $75,000 in year 1, increasing by $1000 per year. A salvage value of $21,000 was realized when the process was discontinued after 8 years. What rate of return did the company make on the process? What is the rate of return made by the company? %

Q: Jim D'Addario of the well-known guitar and bass string factory, D'Addario Strings in Long Island,…

A: Net Present Value(NPV) is excess of present value(PV) of all cash inflows over initial cash outlay…

Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain…

A: Internal Rate of Return: When evaluating projects or investments, the internal rate of return is…

Q: A company produces 118,473 units of product A annually, which sold at an average price of $31.27 per…

A: The differential profit is the excess of extra revenue over the extra cost due to the new equipment.…

Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…

A: Revenue is the funds generated from common commerce operations, computed as the average sales price…

Q: You work for a logistics company, which considers to invest in a computerized system to improve…

A: Here, Initial cost = $90,000 Additional expenses = $25,000 Savings in operating cost = $65,000…

Q: Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the…

A: A discount rate at which the net present worth of an investment is equal to zero is term as internal…

Q: Marigold Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The…

A: Answer- Working Note :   Cost to Manufacture = DL + DM + VFOH  = 8.80+ 28.90+ 4.50  = $ 42.20

Q: Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool.…

A: Net cash flows indicate the forecast of cash inflows and outflows for a particular period.

Q: An equipment costing $57,500 is being considered for a production process at Dew Chemicals. The…

A: Calculation of rate of return from equipment Rate of return from equipment = (Total amount of…

Q: Advantech, Inc is considering to start selling a new product. The company spent $200,000 to develop…

A: Net Present Value (NPV) is the sum of the present value of all future cash flows  over the entire…

Q: Raytronics wishes to use an automated environmental chamber in the manufacture of electronic…

A: For conventional cash flow pattern, both IRR and ERR provide the same result.

Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…

A: The operating income refers to the difference between revenues and operating costs. The operating…

Q: Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the…

A: IRR is the rate of return which makes NPV is zero.

Q: Heffron Technologies (HT) is considering the introduction of a new product. The code name of the new…

A: Cashflow means flow of cash which can be inflow (positive cashflows) and outflow (negative…

Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…

A: Given, information regarding Sugar Sweet (SS) Company that produces and sells 7,000 specialty…

Q: Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with…

A: Capital budgeting refers to the evaluation of the profitability of potential investment and projects…

Q: Raytronics wishes to use an automated environmental chamber in the manufacture of electronic…

A: Installation cost = 1.4 mn Salvage value = 200000 Term = 8 years Increase sales = 650000 Operating…

Q: Barron Chemical used a thermoplastic polymer to enhance the appearance of certain RV panels. The…

A: A discount rate at which the net present worth of an investment is equal to zero is term as internal…

Q: ABC Manufacturing Company is planning to reduce its labor costs by automating a critical task that…

A: The present value method is a method of finding the profitability of a project by discounting the…

Q: YZ Company currently uses four machines to produce 400,000 units annually. The machines were bought…

A: Annual after tax cash flow the operating cash flow available after tax and depreciation.

Q: In evaluating projects, LeadTech’s engineers use a rate of 15%. One year ago a robotic transfer…

A: EUAC stands for Equivalent Uniform Annual Cost. The annual uniform series of payment which can…

Q: Micro Tek Inc. is considering an investment in new equipment that will be used to manufacture a…

A: Average rate of return = Average annual income / Average investment Where  Average investment =…

Q: Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The…

A: Rate of return = IRR = the rate at which NPV is nil.   The cash flows are: Year Costs Revenues…

Q: CariTech (CT) Company produces and sells 7,000 Special purpose chairs per year at a selling price of…

A: The question is based on the concept of Financial Management.

Q: ear after extra operating costs

A: Given information : Year Cash flows 0 -25000 1 8000 2 8000 3 8000 4 8000 5 13000…

Q: Micro Tek Inc. is considering an investment in new equipment that will be used to manufacture a…

A: Average rate of return is described as the percentage of return or income expected from the…

Q: In conducting an EVA analysis for year two for a newly introduced product line, Bethune, Inc., which…

A: Computation:

Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: CariTech (CT) Company produces and sells 7,000 Special purpose chairs per year at a selling  price…

A: Here,

Q: EV Box is a manufacturer of electric vehicle charging stations and charging software. The initial…

A: Here, Initial Cost id $130,000 Annual Cost is $49000 Revenues are $78000 in year 1 and thereby…

Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…

A: Comment-Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The…

A: Rate of return is IRR of the project

Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…

A: Revenues- Revenue is the funds generated from common commerce operations, computed as the average…

Q: Raytronics wishes to use an automated environmental chamber in the manufacture of electronic…

A: Initial cost=$1,400,000 Salvage value=$200,000 Time period=8 years Calculating depreciation: year…

Q: Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof…

A: The internal rate of return is a capital budgeting technique that evaluates a product or project's…

Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…

A: The operating income refers to the difference between revenues and operating costs. The operating…

Q: Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the…

A: Rate of return is calculated using IRR

Q: Mountain Gear has been using the same machines to make its name-brand clothing for the last five…

A: Machines are generally replaced for various reasons, the machine gets obsolete due to advancement in…

Q: Searching for ways to cut costs and increase profit, one of the industrial engineers at Home Comfort…

A: a. The computation of PW is done below: The formulation for computing the above values as follows:…

Q: A company that manufactures brushless blowers invested $650,000 in an automated quality control…

A: IRR is the rate of return a project generates through its lifetime expressed in annual terms. It is…

Q: Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5- period, the costs…

A: Net cash flow, years 1-4 = Annual revenue - Annual cost = $27,000 - $18,000 = $9,000 In year 0, Net…

Q: Smart Manufacturing Company is planning to reduce its labor costs by automating a critical task that…

A: Capital Budgeting Techniques helps to decide the investment project that should be selected.

Q: In 2004, Ferryman Company, a titanium producer in Pennsylvania, expanded its operations with the…

A: SLM method charges the depreciation over the useful life of the assets, it is calculated after…

Q: Micro Tek Inc. is considering an investment in new equipment that will be used to manufacture a…

A: Formula: Average Investment = ( Initial investment + Residual value ) / 2

Q: PDF Corp. needs to replace an old lathe with a new, more efficient model. The old lathe was…

A: Given information: Salvage value is $5,000 Tax rate is 40% Additional working capital is $3,000