The Manufacture of Herbal Health Tonic Is a Competitive Industry

question 56

Multiple Choice

The manufacture of herbal health tonic is a competitive industry. The manufacturing facilities have an annual output of 100,000 gallons. Operating costs are $2 per gallon. A 100,000-gallon capacity plant costs $500,000 to build and has an indefinite life, with no salvage value. The cost of capital is 20 percent (assume no taxes) . Your company has discovered a new process that lowers the operating cost per gallon to $1.50. Assuming that the competition will never catch up and the market demand is sufficiently high, what is the net present value of building a new plant with new technology?

• A)zero
• B)+$500,000
• C)+$250,000
• D)+$50,000

Identify basic principles of bearing wear and material suitability.

Recognize commonly used abbreviations and symbols in mechanical engineering drawings.

Understand the specifications and designations for threads, including UNC and metric systems.

Understand the basic requirements and designations for bearings and their applications in machinery.

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Definitions:

Corporate Ethics

The moral principles and standards that guide behavior within the business world.

Organizational Ethics Codes

A set of guiding principles and standards adopted by an organization to ensure its actions and decisions align with ethical and moral expectations.

Personal Ethics Codes

Individual principles or values that guide a person's behavior and decision-making process.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action for individuals or organizations.