What is the machines internal rate of return

Assignment Help Operation Management
Reference no: EM13841684

The Donut Shoppe is considering buying a new donut machine for a total of $110,110. The Donut Shoppe estimates that this new machine will increase its cash inflow each year, after expenses, by $22,000. This machine will have a useful life of 10 years and will have no salvage value. Ignoring the effects of taxes, what is the machine’s internal rate of return, calculated to the nearest whole percentage?

Reference no: EM13841684

Questions Cloud

What are the advantages for the company : In your opinion, should management resist the formation of a union? Why or why not? What are the advantages for the company? Are there any disadvantages to having a union
Developing project schedule-create more accurate schedule : When developing a project schedule, it is common to underestimate the time and budget needed for each milestone. What are some practices that could help a project manager to create a more accurate schedule?
What is the present value of that salvage value : ABC Company is considering an investment in a machine that will have a useful life of six years with a salvage value at the end of $12,000. Assuming that ABC has a minimum rate of return of 12%, what is the present value of that salvage value?
Which option will return the most to bill : Bill Martin made an investment several years ago, and he now has an option as to how it will take the return on that investment. Option 1 is to receive an immediate cash payment of $100,000. Option 3 is to receive a payment of $20,000 per year for th..
What is the machines internal rate of return : The Donut Shoppe is considering buying a new donut machine for a total of $110,110. The Donut Shoppe estimates that this new machine will increase its cash inflow each year, after expenses, by $22,000. This machine will have a useful life of 10 years..
The studio is offering blockbuster deal : A movie studio sells the latest movie on DVD to Blockbuster at $10 per DVD. The marginal production cost for the movie studio is $2 per DVD. Blockbuster prices each DVD at $25 to its customers. How many DVDs should Blockbuster order? The studio is of..
Order quantity-expected sales and expected overstock : AspenWear, a retailer of ski wear needs to place an order for the Mirabelle, a designer ski jacket for the high-end market. Compute the following performance measures for the above order quantity: expected sales, expected overstock, and expected prof..
What is the total safety stock across all stores : Suppose the 100 retail stores of a supermarket chain have identical weekly demand for a product (mean 200, standard deviation 120). There is zero correlation between the retailers’ demands. The lead time to replenish each retail store is 4 weeks. A c..
Which constraints are binding : Stoneware Pottery Company wants to determine how many bowls and mugs should be produced per day in order to maximize profit given the labor and material constraints. The unit profit value for Bowls is $40 per unit, for mugs the unit profit value is $..

Reviews

Write a Review

Operation Management Questions & Answers

  Examine satisfaction with the work itself across jobs

The purpose of this exercise is to examine satisfaction with the work itself across jobs. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:

  Discuss the key factors that impact location decisions

Discuss the key factors that impact location decisions. As an example, if locating a facility in India, what location decisions would a fast-food chain have to consider as compared to the location decisions of a software company?

  Explain the financial risks to a healthcare organization

Explain the financial risks to a healthcare organization that could result from a failure to plan for the healthcare legal and regulatory environment.

  Describe the impact of legislation on the field

Describe the impact of legislation on the field of compensation management.

  Explain how you would go about establishing an appropriate

you are a health care administrator for saint comfort medical center. you oversee many departments one of which is

  Is the company delivering six sigma quality to its customers

If not, then how much should the standard deviation of the process be reduced to get six sigman quality?

  What is the most critical step in capital budgeting process

What is the most critical step in the capital budgeting process? Explain.

  The firm has no other non-operating assets

The firm has no other non-operating assets. It has $368 million in debt and $60 million in preferred stock. What is the value of the firmas operations?

  What productivity measures could you give your boss now

What productivity measure(s) could you give your boss now? What could you tell your boss about the results from your calculations?

  Which statement is not correct regarding the

1 which statement is not correct about the business-government-society interdependence?a. most business actions impact

  Corporation be held liable for these damages and deaths

Ace Motors, an automobile manufacturer, has been experiencing problems with a particular model. Several people have been killed in accidents resulting from poor design and location of the fuel line in the car. Could officers and directors of the corp..

  How do norms affect the behavior of team members

How do norms affect the behavior of team members?

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