Mars IncIs Considering the Purchase of a New Machine Which Will

question 150

Multiple Choice

Mars Inc.is considering the purchase of a new machine which will reduce manufacturing costs by $5,000 annually.Mars will use the MACRS accelerated method to depreciate the machine,and it expects to sell the machine at the end of its 5-year operating life for $10,000.The firm expects to be able to reduce net working capital by $15,000 when the machine is installed,but required working capital will return to the original level when the machine is sold after 5 years.Mars' marginal tax rate is 40 percent,and it uses a 12 percent required rate of return to evaluate projects of this nature.If the machine costs $60,000,what is the NPV of the project?

• A) −$15,394
• B) −$14,093
• C) −$58,512
• D) −$21,493
• E) −$46,901

Describe the role and importance of supply chain drivers in enhancing supply chain performance.

Identify and explain the major drivers of supply chain performance.

Understand and analyze the impact of economies of scale in supply chain operations.

Analyze different pricing strategies and their effects on supply chain demand and efficiency.

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Definitions:

Fear of Failure

An apprehension or anxiety about failing to achieve a goal or succeed in a task, which can inhibit risk-taking and limit opportunities.

Coping

The process of managing stressful or challenging situations by making efforts to solve problems or adjust to circumstances.

Grit

The combination of passion and perseverance towards long-term goals, regardless of obstacles or failures.

Perfection

The condition, state, or quality of being free from all flaws or defects; an ideal standard that is often difficult to attain.