Touche Manufacturing Is Considering a Rearrangement of Its Manufacturing Operations

question 15

Short Answer

Touche Manufacturing is considering a rearrangement of its manufacturing operations.A consultant estimates that the rearrangement should result in after-tax cash savings of $6,000 the first year,$10,000 for the next two years,and $12,000 for the next two years.Assuming a 12% discount rate,calculate the total present value of the cash flows.

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Definitions:

Taft-Hartley Act

Also known as the Labor Management Relations Act, 1947, it restricted the activities and power of labor unions in the United States.

Unionization Rights

Legal rights allowing employees to form, join, or assist labor unions for collective bargaining purposes.

Supervisors

Individuals within an organization responsible for overseeing the work of employees and ensuring that tasks are carried out efficiently and effectively.

Taft-Hartley Act

A 1947 federal law that restricted the activities and power of labor unions in the United States.