Posted: July 25th, 2021

1. Durkee Corporation keeps careful track of the time required to fill orders. The times required for a particular order appear below:

Wait time…….. Hours: 10.7

Process time……Hours: 0.9

Inspection time…… Hours: 0.4

Move time …… Hours: 2.3

Queue time …… Hours: 4.5

Required:

A.) Determine the throughput time.

B.) Determine the manufacture cycle efficiency (MCE),

C.) Determine the delivery cycle time.

2. Jane, Inc., is considering the purchase of a machine that would cost $430,000 and would last for 6 years, at the end of which, the machine would have a salvage value of $47,000 The machine would reduce labor and other costs by $109,000 per year. Additional working capital of $4,000 would be needed immediately, all of which would be recovered at the end of 6 years. The company requires a minimum pretax return of 17% on all investment projects.

Required:

Determine the net present value of the project.

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