Today Production Company Is Considering the Purchase of a Flexible

question 39

Essay

Today Production Company is considering the purchase of a flexible manufacturing system.The cash benefits / savings associated with the system are as follows: $$\begin{array} { l r } \text { Decreased waste } & \$ 150,000 \\\text { Increased quality } & 200,000 \\\text { Decrease in operating costs } & 125,000 \\\text { Increase in on-time deliveries } & 25,000\end{array}$$ The system will cost $1,500,000 and will last 10 years.The company's cost of capital is 10%.
Required: A. What is the payback period for the flexible manufacturing system?
B. What is the NPV for the flexible manufacturing system?

Understand the concept, theories, and significance of obedience to authority in social psychology.

Identify the fundamental attribution error and its implications in understanding social behavior.

Recognize the role of social roles and their impact on individual behavior in group settings.

Understand the bases and types of power within social and group dynamics.

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Definitions:

Price Inelastic

A situation where the demand for a good or service remains relatively unchanged despite changes in its price.

Consumption

The use of goods and services by households or individuals, often considered in terms of the total amount consumed in an economy.

Allocation of Resources

The process of distributing available resources among various uses to satisfy the needs and wants of the society.

Taxes

Financial charges imposed by a government on individuals, businesses, or other entities to fund public spending and various services.