Establish a new machine to automate a meatpacking process

Reference no: EM13213476

IBP inc is considering establishing a new machine to automate a meatpacking process. The machine will save $50,000 in labor annually. The machine can be purchased today for $200,00 and will be used for 10 years. It has a salvage value of $10,000 at the end of its useful life. The new machine will require an annual maintenance cost of $9000. The corporation has a minimum rate of return of 10%. Do you recommend automating the process ?

Reference no: EM13213476

Questions Cloud

Compute the minimum size of the lab to keep : If something goes wrong, all of the cyanide could end up in the air of the lab, calculate the minimum size of the lab to keep the concentration of hydrogen cyanide in the lab below 5% of the lethal dose.

How to compute bowens accounting profits : Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market value of $4M. Bowen owes his local bank $3M. Last year Bowen sold $5M worth of cotton. His variable operating costs were $4.5M; accounting depreciatio..

Forms of exposure to international financial risks : Prepare a report on the management of risk in an international environment and evaluate the consequences of operational and strategic decisions in an international context and through financial analysis.

Explain ideal gas behavior normal atmospheric pressure : The lethal doses (expressed in ppm by volume) of two gases A & B are the same and equal to 20 ppm. Indicate how many mg of each gas would be needed to reach the lethal concentration in a room of 46m^3.

Establish a new machine to automate a meatpacking process : The machine will save $50,000 in labor annually. The machine can be purchased today for $200,00 and will be used for 10 years. It has a salvage value of $10,000 at the end of its useful life. The new machine will require an annual maintenance cost..

How large is the multiplier for a change in taxes : Consider the following setup for problems #16-#20: C = 1000 + 0.7(Y - T), I = 400, NX = 300 - 0.2Y, G = 10001.) What are the marginal propensities to consume and to import, respectively 2.) Suppose taxes are 1000, then what is the level of equilibriu..

Interim assessment of international financial management : Assessment for the Interim Assessment of International Financial Management - the value to QN of taking out short term derivatives and a comparison between futures and a forward rate

At what level should the price be set where demand elastic : A movie production company faces a linear demand curve for its film, and it seeks to maximize total revenue from the film's distribution. At what level should the price be set Where is demand elastic, inelastic, or unit elastic Explain

What percentage of retail jobs would be lost : According to the News on page 677, what percentage of retail jobs would be lost if the minimum wage were increased to $9.50. Obama Wants $9.50 Minimum Wage (Crains)- When Barack Obama and his fellow Democrats take power in Washington.

User Account

All Pages