Quantitative problem solving paper

This assignment has 2 parts:

  1. Quantitative problem solving
  2. Analysis of findings

Klottier & Walson, Inc. plans to upgrade 1 of the pieces of equipment in its factory. The current equipment has been fully depreciated and does not offer any tax benefits to the company. Although it is still functioning, the equipment’s current model is more cost-efficient and breaks much less than previous models. Furthermore, the company feels that the new model will provide a more reliable product for some new customers. By utilizing the model, the company can save money in production and outsourcing costs.

Don't use plagiarized sources. Get Your Custom Essay on
Quantitative problem solving paper
Just from $9/Page
Order Essay

The new model costs $150,000 (delivered and installed), with an expected life of 5 years. The company expects that the new equipment will cost approximately $1,000 more in utilities than what it now pays. The company will also spend $500 per month for an extended warranty. The new model is more complex and requires hiring someone to program it. The base salary of this new employee will be $36,000, plus applicable payroll taxes and benefits, which add up to be an additional 20% per year. However, the company projects that the new equipment will be much faster, and it would be able to fulfill $75,000 worth of extra orders per year. The management believes that the cost of capital would be 10% and that after the equipment is fully depreciated, the equipment will have 0 value and will be discarded.

You have been hired to determine the following:

Part 1

  • What is the cash flow projection for this equipment, annually, for the next 5 years?
  • What is the NPV for this project?
  • What is the IRR for this project?

Part 2

  • What are the key factors that could be overestimated or underestimated in this project?
  • What measures can managers take to ensure that the outcome of a capital budget project is positive?
    • Are these measures ethical? Explain.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Open chat
1
You can contact our live agent via WhatsApp! Via +1 817 953 0426

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code STARS