Question 1

The following data is available of an operator-machine combination:

 machine investment € 300.000

 depreciation period 10 years
 residual value € 100.000
 maintenance € 3.000 variable budgetted costs/yr.
 electricity + water € 2.000 variable budgetted costs/yr.
 operator € 35/hr, 1 man every 1 machine
 normal production 1.600 hours
 budgetted production 1.500 hours

Calculate the combined man-machine rate in €/hr based on the data above.

Question 2

The cost allocation table (x € 1.000):

Mana- Maintenance Production A Production B

gement
Labor costs 120 150 375 375
Materials costs 60 300 640 350
Machine costs 180 360 240
Total 630 1375 965
180

The Management costs are split up over the other departments proportional to the
labor costs of those departments.
Then the costs of the Maintenance department are divided over the 2 production
departments proportional to the primary attributed machine costs of the
departments.
The normal production is 15.000 products A en 15.000 products B (labor and
material costs are also based on the normal production).

Calculate the cost prices of product A and product B.

Question 3
The following cashflows are calculated of an investment project with a duration of 4
years (amounts in € * 1000).

year Cashflows
2007 -2.000
2008 400
2009 1000
2010 400
2011 700

The project starts on January 1st 2008. The negative cashflow in 2007 is for 100% the
initial investment of this project. Included in the cashflow in 2011 is the desinvesment
of € 300.000.
Assume that the cashflow is spent or received at the end of every year!!
The average weighted cost of capital in this company is 8%.
Calculate the following:
1. The Average Bookrate of Return.
2. The Pay Back Time
3. The Nett Present Value