Question 1

-Calculate the total net present value for the project using a discount rate of 18%.

Accepted Answer

A) -$32,000.00 
B) $425,000.00 
C) $3,697.59 
D) $428,697.59 
E) Do not have enough information to compute 
A) -$32,000.00 
B) $425,000.00 
C) $3,697.59 
D) $428,697.59 
E) Do not have enough information to compute

Question 2

-The internal rate of return for the project is

Accepted Answer

A) Under 10% 
B) Between 10% and 12% 
C) Between 12% and 13% 
D) Between 13% and 14% 
E) Over 14% 
A) Under 10% 
B) Between 10% and 12% 
C) Between 12% and 13% 
D) Between 13% and 14% 
E) Over 14%

Question 3

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

Accepted Answer

A) -$32,000.00 
B) -$8,847.74 
C) $416,152.26 
D) $425,000.00 
E) Do not have enough information to compute 
A) -$32,000.00 
B) -$8,847.74 
C) $416,152.26 
D) $425,000.00 
E) Do not have enough information to compute

Question 4

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 15%.

Accepted Answer

A) $5,163.82 
B) $1,580.42 
C) $9,078.37 
D) $51,000.00 
E) Do not have enough information to compute 
A) $5,163.82 
B) $1,580.42 
C) $9,078.37 
D) $51,000.00 
E) Do not have enough information to compute

Question 5

-For the project, how long will it take to recover the initial investments?

Accepted Answer

A) Less than one year 
B) Between one year and two years 
C) Between two years and three years 
D) More than five years 
E) Do not have enough information to compute 
A) Less than one year 
B) Between one year and two years 
C) Between two years and three years 
D) More than five years 
E) Do not have enough information to compute

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

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

Question 7

The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan.
  
-For the project, how long will it take to recover the initial investments?

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

-The internal rate of return for Project One is

Accepted Answer

A) Under 12% 
B) Between 12% and 15% 
C) Between 15% and 18% 
D) Between 18% and 20% 
E) Over 20% 
A) Under 12% 
B) Between 12% and 15% 
C) Between 15% and 18% 
D) Between 18% and 20% 
E) Over 20%

Question 9

-If the discount rate for the project is changed to 10%, find the total net present value.

Accepted Answer

A) $98,875.51 
B) $345,500.00 
C) $538,481.25 
D) $172,727.27 
E) Do not have enough information to compute 
A) $98,875.51 
B) $345,500.00 
C) $538,481.25 
D) $172,727.27 
E) Do not have enough information to compute

Question 10

-What is the net present value of cash flows using a 7% discount rate for Year 1?

Accepted Answer

A) $214,953.27 
B) $246,100.00 
C) $230,000.00 
D) $200,000.00 
E) Do not have enough information to compute 
A) $214,953.27 
B) $246,100.00 
C) $230,000.00 
D) $200,000.00 
E) Do not have enough information to compute

-Calculate the total net present value for the project using a discount rate of 18%.

-The internal rate of return for the project is

-Calculate the total net present value for the project 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 15%.

-For the project, how long will it take to recover the initial investments?

The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan. -For the project, how long will it take to recover the initial investments?

-The internal rate of return for Project One is

-If the discount rate for the project is changed to 10%, find the total net present value.

-What is the net present value of cash flows using a 7% discount rate for Year 1?

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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Exam 3: Product Design and Development

-Calculate the total net present value for the project using a discount rate of 18%.

-The internal rate of return for the project is

-Calculate the total net present value for the project 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 15%.

-For the project, how long will it take to recover the initial investments?

The product design costs are $75,000. The following table shows the projected cash in-flows. Assume a 4-year lifespan. -For the project, how long will it take to recover the initial investments?

-The internal rate of return for Project One is

-If the discount rate for the project is changed to 10%, find the total net present value.

-What is the net present value of cash flows using a 7% discount rate for Year 1?

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

Filters