Explain what is the net present value

Assignment Help Operation Management
Reference no: EM13724874

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00.

a) What is the break-even point in units for proposal A?

b) What is the break-even point in units for proposal B?

c) What is the break-even point in dollars for proposal A if you add $10,000 installation to the fixed cost?

d) What is the break-even point in dollars for proposal B if you add $10,000 installation to the fixed cost?

What is the net present value of an investment that costs $75,000 and has a salvage value of $45,000? The annual profit from the investment is $15,000 each year for 5 years. The cost of capital at this risk level is 12%.

The initial cost of an investment is $65,000 and the cost of capital is 10%. The return is $16,000 per year for 8 years. What is the net present value?

Reference no: EM13724874

Questions Cloud

Job description and recruiting strategies worksheet : Conduct an interview with someone who has a career or job position that is different from your own. Identify the duties associated with his or her position, as well as any skills and abilities necessary for the position. Use the information gather..
Define the methods and motivational techniques : Money is the most common form of motivation. However, it is not the only thing that motivates employees. As a future hospitality manager, especially in an economic slowdown, what would be the methods and motivational techniques you would use to mo..
Leader responsibility for ethical behavior : What is the relationship between a leader's responsibility for ethical behavior and the idea of an ethical organizational climate? Research a specific nonfictional leader of your choice and provide examples of the behaviors this leader exhibits th..
Emerging trends in information technology : 1. Discuss some of the emerging trends in information technology (e.g. computer hardware, software, data analysis). What impact may they have on your daily life (e.g., workplace, school, recreation)?
Explain what is the net present value : Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for ..
Role of training in an organization development : Question 1: Explain the role of training in an organization's development. Question 2: Describe different employee development methods and their benefits.
It industry is becoming increasingly globalized : As you know, the IT industry is becoming increasingly globalized due to outsourcing. Select a country that your industry is likely to outsource to. Using the Internet, find three distinct cultural traits that might affect how you communicate with ..
Training costs-training and career development : In 200-250 words, what is HR's role in impacting the career development of employees? What should be the role of training? How can training programs be evaluated on their effectiveness?
How to get your ideas to spread : View the Seth Godin video about innovation, Seth Godin: How to get your ideas to spread. Think of an innovative company and explain how its ability to adapt has enabled the organization to remain competitive in its industry.

Reviews

Write a Review

Operation Management Questions & Answers

  Mathematical formulation of the model

Mathematical formulation of the model

  How would you describe the distinction between supply chain

1. how would you describe the distinction between supply chain management and value network management?2. what is the

  Is there such a thing as business intelligence

Is there such a thing as 'Business Intelligence'? Can some people view business concepts better then others and make 'better' business decisions then others? Or is it just LUCK when business decisions turn out to be correct?

  What is the required format of a linear programming problem

What is the required format of a linear programming problem needed if we want to solve it by using QM for Windows? What information about the solution can you collect from the results provided by QM for Windows? Discuss briefly.

  Identify negotiation tactics of the sewuence

identify negotiation tactics of the sewuence of events that transpired just befor the united states began operation freedom in iraq. describe the strategy or strategies used by any of the parties in conflict.

  Aware of the legal requirements of staffing systems

Determine the factors needed to get individual managers to be more aware of the legal requirements of staffing systems and to take steps to ensure that they themselves engage in legal staffing actions. Support your position with evidence or exampl..

  Illustrate what problems will he have to overcome to work

Illustrate what general steps should Hank follow in setting up a continuous improvement program for the organization. Illustrate what problems will he have to overcome to make it work.

  How manager minimize risks

No one (or no organization) would make a decision based off of imperfect information. However, for a variety of reasons, many times organizations have had to function and make decisions based on imperfect information.

  Explain how globalization has changed the way american

describe how globalization has changed the way american companies are doing business. in what ways do you believe this

  How would you characterize best buy''s competitive strategy

How would you characterize Best Buy's competitive strategy? Should it be classified as a low-cost provider strategy? A differentiation strategy?

  Explain seldom performed even slightest investigation

explain seldom performed even slightest investigation of property before recommending it to managing members. Eric also purchased a couple of rental properties on his own account.

  Explain why you agree with the strategy you selected

Based on the information about Walmart and any other information you found online or in media reports, explain why you agree with the strategy you selected.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd