Clark Paints

Data: follow of stark naked equipment 200,000 Expected life of equipment5 governing body value in 5 years 40,000 livelihood doing - design of cans 5,500,000 yearly production or procure needs 1,100,000 deem of workers needed 3 yearbook hours to be worked per employee 2,000 Earnings per hour for employees 12.00 yearly health benefits per employee 2,500 invigorated(prenominal) yearbook benefits per employee - % of wages18% make up of raw materials per can0.25 otherwise shifting production exists per can0.05 cost to acquire cans - per can0.45 Required tramp of return12% measure revenue rate35% Cost to produce:Make leveraging yearly cost of direct materials: essential of 1,100,000 cans per year 330,000 one-year cost of direct labor for new employees Wages 72,000 wellness Benefits 7,500 Other Benefits 12,960 extreme wages and benefits 92,460 complete annual production be 422,460 one-year cost to purchase cans 495,000 Part 1: cash in falls over the life of the project originally valuateTax Effect by and by Tax Item Annual cash savings (make vs buy) 72,540 0.

65 47,151 Tax savings receivable to wear and tear 32,000 0.35 11,200 Total annual cash flow 58,351 Part 2: retribution period $200,000 / $58,3513.4years Part 3: Annual rate of return Accounting income as result of fall costs Annual cash savings (before tax effect) 72,540 slight Depreciation (32,000) out front tax income 40,540 Tax at 35% rate (14,189) After tax Income 26,351 $26,351 / $200,00013.18% Part 4: electronic network establish ValueBefore taxAfter tax12% PVPresent ItemYearamountTax % stepFactorValue Cost of Machine0...If you want to enamor a full essay, swan it on our website: Ordercustompaper.com

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