Question 1

-Calculate the total net present value for the project.

Accepted Answer

A) $446,174.37 
B) $46,305.44 
C) $103,694.56 
D) $318,350.00 
E) Do not have enough information to compute 
A) $446,174.37 
B) $46,305.44 
C) $103,694.56 
D) $318,350.00 
E) Do not have enough information to compute B

Question 2

The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan.
  
-The internal rate of return for the project is

Accepted Answer

A) Under 10% 
B) Between 10% and 12% 
C) Between 12% and 14% 
D) Between 14% and 16% 
E) Over 16% 
A) Under 10% 
B) Between 10% and 12% 
C) Between 12% and 14% 
D) Between 14% and 16% 
E) Over 16% D

Question 3

Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.
  
-For the project, how long will it take to recover the initial investments using a discount rate of 17%?

Accepted Answer

A) Less than two years 
B) Between two years and three years 
C) Between three years and four years 
D) Between four years and five years 
E) More than five years 
A) Less than two years 
B) Between two years and three years 
C) Between three years and four years 
D) Between four years and five years 
E) More than five years C

Question 4

Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.
  
-The internal rate of return for the project is

Accepted Answer

A) 14% 
B) 17% 
C) 20% 
D) 22.13% 
E) 25% 
A) 14% 
B) 17% 
C) 20% 
D) 22.13% 
E) 25%

Question 5

-The internal rate of return for the project is

Accepted Answer

A) 22.13% 
B) 18.58% 
C) 15% 
D) 10% 
E) 20% 
A) 22.13% 
B) 18.58% 
C) 15% 
D) 10% 
E) 20%

Question 6

Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.
  
-The internal rate of return for the project is

Accepted Answer

A) Under 14% 
B) Between 14% and 17% 
C) Between 17% and 20% 
D) Between 20% and 25% 
E) Over 25% 
A) Under 14% 
B) Between 14% and 17% 
C) Between 17% and 20% 
D) Between 20% and 25% 
E) Over 25%

Question 7

-For Project One, how long will it take to recover the initial investments using a discount rate of 15%?

Accepted Answer

A) Less than one year 
B) Between one year and two years 
C) Between two years and three years 
D) Between three years and four years 
E) More than four years 
A) Less than one year 
B) Between one year and two years 
C) Between two years and three years 
D) Between three years and four years 
E) More than four years

Question 8

-What is the net present value of cash flows using a 7% discount rate for Year 4?

Accepted Answer

A) $163,551.40 
B) $229,389.30 
C) $187,250.00 
D) $133,506.66 
E) Do not have enough information to compute 
A) $163,551.40 
B) $229,389.30 
C) $187,250.00 
D) $133,506.66 
E) Do not have enough information to compute

Question 9

-Calculate the total net present value for Project Two using a discount rate of 15%.

Accepted Answer

A) $100,640.65 
B) $94,000.00 
C) $6,640.65 
D) $58,260.87 
E) Do not have enough information to compute 
A) $100,640.65 
B) $94,000.00 
C) $6,640.65 
D) $58,260.87 
E) Do not have enough information to compute

Question 10

-Calculate the total net present value for the project using a discount rate of 15%.

Accepted Answer

A) -$32,000.00 
B) $448,843.54 
C) $425,000.00 
D) $23,843.54 
E) Do not have enough information to compute 
A) -$32,000.00 
B) $448,843.54 
C) $425,000.00 
D) $23,843.54 
E) Do not have enough information to compute

Question 11

-Calculate the total net present value for Project One using a discount rate of 20%.

Accepted Answer

A) $85,000.00 
B) $5,304.78 
C) $1,138.12 
D) $51,666.67 
E) Do not have enough information to compute 
A) $85,000.00 
B) $5,304.78 
C) $1,138.12 
D) $51,666.67 
E) Do not have enough information to compute

Question 12

Fabricating Solutions is looking at the financials for a CNC machine. The expected life cycle for the machine is 6 years. The initial projected product design costs are $725,000. Fabricating Solutions typically uses a discount rate of 14% for all new product financials.
  
-Calculate the total net present value for the project using a discount rate of 20%.

Accepted Answer

A) $312,500.00 
B) $28,291.65 
C) $753,291.65 
D) $725,000.00 
E) Do not have enough information to compute 
A) $312,500.00 
B) $28,291.65 
C) $753,291.65 
D) $725,000.00 
E) Do not have enough information to compute

Question 13

-The internal rate of return for Project One is

Accepted Answer

A) 22.13% 
B) 18.58% 
C) 15.64% 
D) 12.35% 
E) 20.98% 
A) 22.13% 
B) 18.58% 
C) 15.64% 
D) 12.35% 
E) 20.98%

Question 14

-Calculate the total net present value for the project using a discount rate of 10%.

Accepted Answer

A) $61,448.39 
B) $486,448.39 
C) $425,000.00 
D) -$32,000.00 
E) Do not have enough information to compute 
A) $61,448.39 
B) $486,448.39 
C) $425,000.00 
D) -$32,000.00 
E) Do not have enough information to compute

Question 15

-Calculate the total net present value for Project Two using a discount rate of 12%.

Accepted Answer

A) $11,252.33 
B) $105,252.33 
C) $94,000.00 
D) $59,821.43 
E) Do not have enough information to compute 
A) $11,252.33 
B) $105,252.33 
C) $94,000.00 
D) $59,821.43 
E) Do not have enough information to compute

Question 16

-If the discount rate for the project is changed to 11%, find the total net present value.

Accepted Answer

A) $165,315.32 
B) $570,738.29 
C) $354,550.00 
D) $115,061.25 
E) Do not have enough information to compute 
A) $165,315.32 
B) $570,738.29 
C) $354,550.00 
D) $115,061.25 
E) Do not have enough information to compute

Question 17

-Calculate the total net present value for Project One using a discount rate of 15%.

Accepted Answer

A) $92,453.50 
B) $53,913.04 
C) $85,000.00 
D) $7,453.50 
E) Do not have enough information to compute 
A) $92,453.50 
B) $53,913.04 
C) $85,000.00 
D) $7,453.50 
E) Do not have enough information to compute

Question 18

-For Project Two, how long will it take to recover the initial investments using a discount rate of 20%?

Accepted Answer

A) Less than one year 
B) Between one year and two years 
C) Between two years and three years 
D) Between three years and four years 
E) More than four years 
A) Less than one year 
B) Between one year and two years 
C) Between two years and three years 
D) Between three years and four years 
E) More than four years

Question 19

The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan.
  
-Calculate the total net present value for the project using a discount rate of 9%.

Accepted Answer

A) $51,000.00 
B) $75,000.00 
C) $9,078.37 
D) $46,788.99 
E) Do not have enough information to compute 
A) $51,000.00 
B) $75,000.00 
C) $9,078.37 
D) $46,788.99 
E) Do not have enough information to compute

Question 20

-The internal rate of return for the project is

Accepted Answer

A) Under 10% 
B) Between 10% and 15% 
C) Between 15% and 18% 
D) Between 18% and 20% 
E) Over 20% 
A) Under 10% 
B) Between 10% and 15% 
C) Between 15% and 18% 
D) Between 18% and 20% 
E) Over 20%

-Calculate the total net present value for the project.

The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan. -The internal rate of return for the project is

-The internal rate of return for the project is

-For Project One, how long will it take to recover the initial investments using a discount rate of 15%?

-What is the net present value of cash flows using a 7% discount rate for Year 4?

-Calculate the total net present value for Project Two using a discount rate of 15%.

-Calculate the total net present value for the project using a discount rate of 15%.

-Calculate the total net present value for Project One using a discount rate of 20%.

-The internal rate of return for Project One is

-Calculate the total net present value for the project using a discount rate of 10%.

-Calculate the total net present value for Project Two using a discount rate of 12%.

-If the discount rate for the project is changed to 11%, find the total net present value.

-Calculate the total net present value for Project One using a discount rate of 15%.

-For Project Two, how long will it take to recover the initial investments using a discount rate of 20%?

The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan. -Calculate the total net present value for the project using a discount rate of 9%.

-The internal rate of return for the project is

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Exam 3: Product Design and Development

-Calculate the total net present value for the project.

The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan. -The internal rate of return for the project is

-The internal rate of return for the project is

-For Project One, how long will it take to recover the initial investments using a discount rate of 15%?

-What is the net present value of cash flows using a 7% discount rate for Year 4?

-Calculate the total net present value for Project Two using a discount rate of 15%.

-Calculate the total net present value for the project using a discount rate of 15%.

-Calculate the total net present value for Project One using a discount rate of 20%.

-The internal rate of return for Project One is

-Calculate the total net present value for the project using a discount rate of 10%.

-Calculate the total net present value for Project Two using a discount rate of 12%.

-If the discount rate for the project is changed to 11%, find the total net present value.

-Calculate the total net present value for Project One using a discount rate of 15%.

-For Project Two, how long will it take to recover the initial investments using a discount rate of 20%?

The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan. -Calculate the total net present value for the project using a discount rate of 9%.

-The internal rate of return for the project is

Operations Management, Processes, and Supply Chain Management

Corporate Strategy, Performance, and Sustainability

Process Design and Capacity Management

Customer Relationships and Customer Service

Demand Management, Forecasting, and Aggregate Planning

Independent Demand Inventory Management

Supplement: Job Scheduling and Vehicle Routing and Material Flow Analysis and Facility Layouts

Lean Systems

Managing Customer and Work Flows

Managing Information Flowsmrp and ERP

Managing Projects

Supplement: Statistical Quality Control and Six Sigma Quality Management

Supply Chain Processes

Location, Logistics, and Product Returns

Integrating Processes Along the Supply Chain

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