{"id":6978,"date":"2020-11-15T12:56:54","date_gmt":"2020-11-15T12:56:54","guid":{"rendered":"http:\/\/onlineclassesguru.com\/?p=6978"},"modified":"2020-11-15T12:56:54","modified_gmt":"2020-11-15T12:56:54","slug":"your-probationary-period-at-the-cosmo-k-manufacturing-group-continues","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/your-probationary-period-at-the-cosmo-k-manufacturing-group-continues\/","title":{"rendered":"Your probationary period at the Cosmo K Manufacturing Group continues"},"content":{"rendered":"<style type=\"text\/css\"><\/style><p>Instructions<br \/>\nYour probationary period at the Cosmo K Manufacturing Group continues. Your supervisor, Gerry, assigns you a project each week to test your competence in finance.<\/p>\n<p>The company is considering the addition of a new office machine that will perform many of the tasks now performed manually. For this week\u2019s task, Gerry has given you the responsibility of evaluating the cash flows associated with the new machine. He has requested the report to be delivered within the week.<\/p>\n<p>Evaluation of a New Office Machine<br \/>\nThe Cosmo K Manufacturing Group currently has sales of $1,400,000 per year. It is considering the addition of a new office machine, which will not result in any new sales but will save the company $105,500 before taxes per year over its 5-year useful life. The machine will cost $300,000 plus another $12,000 for installation. The new asset will be depreciated using a modified accelerated cost recovery system (MACRS) 5-year class life. It will be sold for $25,000 at the end of 5 years. Additional inventory of $11,000 will be required for parts and maintenance of the new machine. The company evaluates all projects at this risk level using an 11.99% required rate of return. The tax rate is expected to be 35% for the next decade.<\/p>\n<p>Tasks:<br \/>\nAnswer the following questions:<\/p>\n<p>What is the total investment in the new machine at time = 0 (T = 0)?<br \/>\nWhat are the net cash flows in each of the 5 years of operation?<br \/>\nWhat are the terminal cash flows from the sale of the asset at the end of 5 years?<br \/>\nWhat is the NPV of the investment?<br \/>\nWhat is the IRR of the investment?<br \/>\nWhat is the payback period for the investment?<br \/>\nWhat is the profitability index for the investment?<br \/>\nAccording to the decision rules for the NPV and those for the IRR, is the project acceptable?<br \/>\nIs there a conflict between the two decision methods? If so, what would you use to make a recommendation?<br \/>\nWhat are the pros and cons of the NPV and the IRR? Explain your answers.<\/p>\n<p>Submission Details:<\/p>\n<p>Show the data used and the calculations for each question in a Microsoft Excel sheet and the analysis in a Microsoft Word document.<br \/>\nName your Microsoft Excel sheet MBA6010_W3_ LastName_FirstName.xls and your Microsoft Word document MBA6010_W3_LastName_FirstName.doc.<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>Instructions Your probationary period at the Cosmo K Manufacturing Group continues. Your supervisor, Gerry, assigns you a project each week to test your competence in finance. The company is considering the addition of a new office machine that will perform many of the tasks now performed manually. For this week\u2019s task, Gerry has given you&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6978","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Your probationary period at the Cosmo K Manufacturing Group continues - onlineclassesguru<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/your-probationary-period-at-the-cosmo-k-manufacturing-group-continues\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Your probationary period at the Cosmo K Manufacturing Group continues - onlineclassesguru\" \/>\n<meta property=\"og:description\" content=\"Instructions Your probationary period at the Cosmo K Manufacturing Group continues. Your supervisor, Gerry, assigns you a project each week to test your competence in finance. The company is considering the addition of a new office machine that will perform many of the tasks now performed manually. For this week\u2019s task, Gerry has given you...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/your-probationary-period-at-the-cosmo-k-manufacturing-group-continues\/\" \/>\n<meta property=\"og:site_name\" content=\"onlineclassesguru\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-15T12:56:54+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin_admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/onlineclassesguru.com\/#website\",\"url\":\"https:\/\/onlineclassesguru.com\/\",\"name\":\"onlineclassesguru\",\"description\":\"Cheap Professional coursework and reaction papers help\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/onlineclassesguru.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/your-probationary-period-at-the-cosmo-k-manufacturing-group-continues\/#webpage\",\"url\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/your-probationary-period-at-the-cosmo-k-manufacturing-group-continues\/\",\"name\":\"Your probationary period at the Cosmo K Manufacturing Group continues - onlineclassesguru\",\"isPartOf\":{\"@id\":\"https:\/\/onlineclassesguru.com\/#website\"},\"datePublished\":\"2020-11-15T12:56:54+00:00\",\"dateModified\":\"2020-11-15T12:56:54+00:00\",\"author\":{\"@id\":\"https:\/\/onlineclassesguru.com\/#\/schema\/person\/1831fa4d28e47b468621cf27932f5742\"},\"breadcrumb\":{\"@id\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/your-probationary-period-at-the-cosmo-k-manufacturing-group-continues\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/your-probationary-period-at-the-cosmo-k-manufacturing-group-continues\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/your-probationary-period-at-the-cosmo-k-manufacturing-group-continues\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/onlineclassesguru.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Your probationary period at the Cosmo K Manufacturing Group continues\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/onlineclassesguru.com\/#\/schema\/person\/1831fa4d28e47b468621cf27932f5742\",\"name\":\"admin_admin\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/onlineclassesguru.com\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/429c8d043f7a770af242b0031e8b9f2b?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/429c8d043f7a770af242b0031e8b9f2b?s=96&d=mm&r=g\",\"caption\":\"admin_admin\"},\"url\":\"https:\/\/onlineclassesguru.com\/index.php\/author\/admin_admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Your probationary period at the Cosmo K Manufacturing Group continues - onlineclassesguru","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/your-probationary-period-at-the-cosmo-k-manufacturing-group-continues\/","og_locale":"en_US","og_type":"article","og_title":"Your probationary period at the Cosmo K Manufacturing Group continues - onlineclassesguru","og_description":"Instructions Your probationary period at the Cosmo K Manufacturing Group continues. 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