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21. (TCO 10) The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $950,000. The investment is expected to generate $400,000 in annual cash flows for a period of four years. The required rate of return is 12%. The old machine can be sold for $50,000. The machine is expected to have zero value at the end of the four-year period.What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered. (Points : 5) $119,550; Yes$314,800;Yes$1,019,550;Yes$69,550;No22. (TCO 11) The four cost categories in a cost of quality program are (Points : 5) product design, process design, internalsuccess, and external success.prevention, appraisal, internal failure, andexternal failure.design, conformance, control, andprocess.design, process specification, on-timedelivery, and customer satisfaction.23. (TCO 11) Regal Products has a budget of $900,000 in 20X6 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $60,000 in variable costs. The new method will require $18,000 in training costs and $120,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 200,000 units. Appraisal costs for the year are budgeted at $600,000. The new prevention procedures will save appraisal costs of $30,000. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 3% of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company's average external failures average 3% of units sold. The new proposal will reduce this rate by 50%. Assume all units produced are sold and there are no ending inventories.How much will internal failure costs change if the internal product failures are reduced by 50%
with the new procedures? (Points : 5) $500,000decrease$750,000decrease$33,750decrease$45,000decrease24. (TCO 12) The costs associated with storage are an example of which cost category? (Points : 25. (TCO 12) Liberty Celebrations, Inc., manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60, and the cost to initiate a production run is $60. There are no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the first of which is to be run immediately. Liberty Celebrations has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous.If Liberty Celebrations does not maintain a safety stock, the estimated total carrying cost for the flag displays for the coming year is (Points : 5) $2,000.$3,600.$2,400.$3,000.1. (TCO 2) Russell Company has the following projected account balances for June 30, 20X9: Accounts payable $ 60,000 Sales $ 800,000 Accounts receivable $ 100,000 Capital stock $ 400,000 Depreciation, factory $ 36,000 Retained earnings ?