Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. If U.S. Garment's operating cost per machine is $16,000 per year for years 1 and 2 and then it increases by $1000 per year through year 5, what is the equivalent uniform annual cost per machine (years 1-5) at an Interest rate of 11% per year? The equivalent uniform annual cost per machine is $

Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. If U.S. Garment's operating cost per machine is $16,000 per year for years 1 and 2 and then it increases by $1000 per year through year 5, what is the equivalent uniform annual cost per machine (years 1-5) at an Interest rate of 11% per year? The equivalent uniform annual cost per machine is $

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. If U.S. Garment's operating cost per machine is $16,000 per year for years 1 and 2 and then it increases by $1000 per year through year 5, what is the equivalent uniform annual cost per machine (years 1-5) at an interest rate of 11% per year? The equivalent uniform annual cost per machine is $
Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor, Almos Garment Corp. If Almos' operating cost is $38,000 per year for years 1 and 2 and then it increases by 5% per year through year 10, what is the year-zero present worth of the machine operating cost at an interest rate of 14% per year? The present worth of the machine operating cost is determined to be $
The Gap has some of its jeans stone-washed under a contract with Vietnam Garment Corporation (VGC). If VGC’s estimated operating cost per machine is $26,000 for year 1 and it increases by $1500 per year through year 5, the equivalent uniform annual cost per machine over years 1 to 5, at an interest rate of 8% per year, is closest to: (a) $30,850 (b) $28,770 (c) $26,930 (d) $23,670
Solar Hydro manufactures a revolutionary aeration system that combines coarse and fine bubble aeration components. This year (year 1) the cost for check valve components is $9,000. Based on closure of a new contract with a distributor in China and volume discounts, the company expects this cost to decrease. If the cost in year 2 and each year thereafter decreases by $560, what is the equivalent annual cost for a 5-year period at an interest rate of 10% per year?
A company that manufactures a revolutionary aeration system combining coarse and fine bubble aeration components had costs this year (year 1) of $9,000 for check valve components. Based on completion of a new contract with a distributor in China and volume discounts, the company expects this cost to decrease. If the cost in year 2 and each year thereafter decreases by $560, what is the equivalent annual cost for a five-year period at an interest rate of 10% per year?
A machine manufacturer sells each machine for $6,900. The fixed costs are $287,450 per annum, variable costs are $2,050 per machine, and the production capacity is 74 machines in a year. a. What is the break-even volume? Round up to the next whole number b. What is the break-even revenue? Round to the nearest cent c. What is break-even as a percent of capacity per annum? % Round to two decimal places d. What is the profit or loss made if 68 machines are sold in a year?
The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit. What is ABC's monthly break-even amount in dollars?
The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit. Suppose that ABC would like to realize a monthly profit of $50,000. How many units must they sell each month to realize this profit?
A certain factory produces 2000 Ton per year of its product. Th price of one kilogram is 1.8$. The annual direct production cost is 2million $ when the factory works at its whole capacity. Other fixed costs are 7X10^5 b) If the selling price increases by 10% calculate the increase in the net profit at the whole capacity assuming the taxes are 48% of the gross profit.
A steel drum manufacturer incurs a yearly fixed operating cost of 200000. Each drum manufactured costs 160 to produce and sells for 200. what is the manufacturer's break even sales volume in drums per year?
The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit. How many units must ABC sell each month to break even?
Lewin Corp. has the capacity to produce 100,000 units of product per year. The fixed cost of operating the plant is $200,000 per year, while the variable production costs are $13 per unit. This year the firm anticipates producing 80,000 units and selling them for $20 each. 1) If a foreign distributor offers to buy 10,000 units this year for $14, what impact would this sale have on overall profits? (Provide dollar amount and state whether it is an increase or decrease.) 2) If the order from the foreign distributor is for 25,000 units, what impact would this sale have on overall profits? (Provide dollar amount and state whether it is an increase or decrease.)

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