Reference no: EM131406876
Barry, an Oklahoma Crude Company engineer who did not take Engineering Economy in his undergraduate coursework, recommended that Oklahoma Crude purchase a special tool to reduce the cost of pumping oil out of the bayous of St. Martin Parish. As a result of Barry's recommendation, Oklahoma Crude purchased the tool for $30,000 on January 1, 2005. By January 1, 2006, the tool had saved a total of $5,000 and went on line full time. After going on line full time, the tool saved Oklahoma Crude $9,000 each year for the next three years and Barry was happy. However, Barry recommended the low cost model, and it started breaking down during the early part of year five, and ended up saving only $4,000 during year five. It was scrapped as being unusable at the end of year five, and had a zero salvage value. Barry told his boss that his recommendation had been correct, as it had saved Oklahoma Crude $6,000 and that is a savings of 20%.
1. The IRR for the investment that Barry recommended is . Enter your answer for the IRR using 2 decimal places and no % sign. For example, if you calculate an IRR as 7.53%, enter it as 7.53.
2. Using a 10% MARR, calculate the actual present worth of the purchase:
Round your answer for the PW and do not use a dollar sign ("tiny_mce_markerquot;), any commas (",") or a decimal point ("."). For example, if you calculate a PW of $3535.36, enter your answer as 3535
3. Using a 10% MARR, was Barry's recommendation correct? Enter your answer as: either yes, no, or not sure
Forms of net income
: Assuming wages and profits are the only forms of net income, construct an example showing the payments of the producers of the three goods (including inter-producer payments)
|
Outline a communications plan the company could use
: Analyze the five forces of competition to determine how they impact the company. Outline a communications plan the company could use to make the strategies you recommend above known to all stakeholders.
|
Create a network for this project
: Find the minimum duration of the project and indicate the activities on the critical path.
|
Analyze the positioning of your companys product in the us
: You will be creating an international marketing report for an international brand/product. You will serve as a consultant to an international company breaking into the US market. Research and analyze at least two (2) current articles on an interna..
|
Calculate the actual present worth of the purchase
: 1. The IRR for the investment that Barry recommended is . Enter your answer for the IRR using 2 decimal places and no % sign. For example, if you calculate an IRR as 7.53%, enter it as 7.53. 2. Using a 10% MARR, calculate the actual present worth..
|
Draw a network for the pit stop procedure
: Using your diagram work out the earliest and latest time for each event, find the minimum duration for the pit stop and identify the critical path.
|
Incremental ror for the two alternatives
: Two facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows for each facility are shown in the table below.
|
Prepare one business-level strategy that you would suggest
: For the corporation that does not operate internationally, propose one business-level strategy and one corporate-level strategy that you would suggest the corporation consider. Justify your proposals.
|
Demonstrates mastery conceptualizing the problem
: Demonstrates mastery conceptualizing the problem. Shows analysis, synthesis, and evaluation of required material and Contrast IBM projects with other competitors developing similar HCI projects. Why should HCI professionals keep abreast of those pro..
|