Blog

Two systems are being evaluated to reduce process lead time….

Two systems are being evaluated to reduce process lead time. One of the systems must be selected. An 8-year study period will be used for the analysis. The interest rate is 8% per year. System 1 System 2 First cost, $ 37,000 84,000 Annual O&M, $/year 47,000 61,000 Benefits, $/year 120,000 160,000 Disbenefits, $/year 29,000 0 (Round ratios to 2 decimal places) What is the Benefit-Cost ratio for System 1?   [v1] What is the Benefit-Cost ratio for System 2?   [v2] Based on a Benefit-Cost analysis, which System should be selected, 1 or 2?   [bc]

A company plans to spend $3,700,000 on equipment. The equipm…

A company plans to spend $3,700,000 on equipment. The equipment will be depreciated using the MACRS method and a 5-year recovery period. The company uses a study period of 6 years for these types of purchases and plans to keep the equipment indefinitely. Gross income is expected to be $900,000 in year 1 and increase by $170,000 each year. Annual operating expenses are expected to be $50,000 in year 1 and increase by $70,000 each year. The company’s combined marginal tax rate is 39%. A portion of the after-tax cash flow analysis is shown below. Year GI OE CFBT Dt TI Taxes CFAT 0 −$3,700,000 1 $900,000 $50,000 (a) $740,000 (b) (c) (d) 2 $1,041,260 3 $917,556 4 $867,734 5 $928,734 6 $906,617 Round to nearest dollar. For Year 1, what is the cash flow before taxes, CFBT? $[cb] For Year 1, what is the taxable income, TI? $[ti] For Year 1, what is the amount of taxes, Taxes? $[x] For Year 1, what is the cash flow after taxes, CFAT? $[ca] What is the after-tax Rate of Return over the study period? [ror]%  (one decimal) If the company’s MARR is 10%, should they invest in this equipment, YES or NO? [in]

A patient diagnosed with type 1 diabetes mellitus is maintai…

A patient diagnosed with type 1 diabetes mellitus is maintained on a nighttime dose of basal insulin with short-acting insulin prior to meals three times daily. The patient has had two consecutive hemoglobin A1c (Hgb A1c) results that are less than 5%. Which question should a nurse ask when interpreting these results?