Purchase new milling machine

Assignment Help Operation Management
Reference no: EM13845449

Pat Maggard needs to purchase a new milling machine. She is considering two different competing machines. Milling Machine A will cost $300,000, and will return $80,000 per year for six years, with no salvage value. Milling machine B will cost $220,000, and will return $60,000 for five years, with a salvage value of $30,000. The firm is currently using 7 percent as the cost of capital. Using Net Present Value as the criterion, which machine should be purchased? What is the total payoff in $ of machine?

Reference no: EM13845449

Questions Cloud

Discuss either the pro or con of full financial disclosure : Discuss either the pro or con of full financial disclosure. You must take a position advocating full disclosure and why this is beneficial for the marketplace and the economy or a position arguing that the associated costs of full disclosure outweigh..
What manager should understand about business process : Briefly discuss what a manager should understand about a business process. Briefly discuss what a manager should understand about supply chain management. What is the relationship between business processes, supply chain management, and enterprise so..
What would be the optimal organizational design : What would be the optimal organizational design for the following situation? Your company typically uses horizontal organization, and you are entering a country where management structures are hierarchical based on entrenched historical and cultural ..
What is the sigma level of the entire system : Company XYZ is evaluating whether it is meeting the six sigma requirement or not. The company promises its customer to deliver the product in 15 to 75 hours. Actual shipment data has a mean of 50 hours and standard deviation of 5 hours. A process con..
Purchase new milling machine : Pat Maggard needs to purchase a new milling machine. She is considering two different competing machines. Milling Machine A will cost $300,000, and will return $80,000 per year for six years, with no salvage value. Milling machine B will cost $220,00..
Inevitable loss of motivation amongst arls workforce : Successive governments in the country of Rainland have tried to overcome the social costs associated with the closure of certain high profile home-based companies by taking them into public ownership. Which of aRL's activities should be outsourced? W..
System implementation and a systems development life cycle : Explain the relationship between system implementation and a systems development life cycle (SDLC).
Reasons for the failure of total quality management : Describe FIVE possible reasons for the failure of a Total Quality Management (TQM) programme within an organisation.

Reviews

Write a Review

Operation Management Questions & Answers

  The most controversial topics in physical science

Among the most controversial topics in physical science, global warming has received a great deal of attention during the past decade. Given its great impacts on both humans and the environment, lawmakers and scientists must weigh heavily the informa..

  Determine the market equilibrium conditions

John Barks owns Barks Computer Screens Inc. and wants to identify the supply and demand for screens in his market. The company can produce large screens called Wides or small screens called Squares.

  Throughput time and the manufacturing cycle efficiency

With the following information, compute the throughput time and the manufacturing cycle efficiency: Wait time 12.0 days Inspection time 0.9 days Processing time 3.5 days Move time 0.2 days Queue time 2.0 days.

  Prepare an aggregate plan for the coming year

Prepare an aggregate plan for the coming year, assuming that the sales forecast is perfect. The plant will run 8, 10, 9, 11 lines in the coming four quarters.

  Helpful in measuring nonfinancial performance

Research Six Sigma, Balanced Scorecard, and Triple Bottom Line. (A Google search with ethics AND the chosen model works well.) Which do you think would be most helpful in measuring nonfinancial performance? Why?

  Design capacity refers to the maximum amount

Design capacity refers to the maximum amount that a production facility can produce. The variable cost per unit is higher for job shop production than assembly line production.

  Can you give examples where you will use only domestic

Can you give examples where you will use only domestic outsourcing providers versus situations where you will use only offshore providers

  What management, organization

Allowing employees to use their own smartphones for work will save the company money. Do you agree? Why or why not

  How that will be useful for the ongoing project

The project is prepared to move into remote offices across the organization. In your paper address the 4 key stages of project monitoring and how that will be useful for the ongoing project.

  Create an idea for a new reality television show

Create an idea for a new reality television show. What competitive advantage does this show have over existing shows? How many and which differences would you promote? What is your positioning statement for this television show?

  How much should the national credit union invest

How much should the National Credit Union invest in each security so as to maximize its return on investment?

  Two variables and two constraints

Develop your own original Linear Programming problem with the minimum of two variables and two constraints.

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