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# GSCM 209 Operations Analysis_Week3_Assignment_Markland Manufacturing intends to increase capacity_Complete_answer

GSCM 209 Operations Analysis_Week3_Assignment_Markland Manufacturing intends to increase capacity_Complete_answer

GSCM 209 Operations Analysis_Week3_Assignment_Markland Manufacturing intends to increase capacity_Complete_answer

GSCM 209 Operations Analysis_Week3_Assignment_Markland Manufacturing intends to increase capacity_Complete_answer

GSCM 209 Operations Analysis_Week3_Assignment_Markland Manufacturing intends to increase capacity_Complete_answer

S7.17 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?
S7.18 Using the data in Problem S7.17:
a) What is the break-even point in dollars for proposal A if you add \$10,000 installation to the fixed cost?

b) What is the break-even point in dollars for proposal B if you add \$10,000 installation to the fixed cost?
S7.30
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%.

S7.31
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?