Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another 10 years. It is inefficient compared to modern standards, though, and so the company is considering replacing it. The new milling machine, at a cost of $104,000 delivered and installed, would also last for 10 years and would produce after-tax cash flows (labor savings and depreciation tax savings) of $18,300 per year. It would have zero salvage value at the end of its life. The project cost of capital is 10%, and its marginal tax rate is 25%. Should Chen buy the new machine?

Yes they Should.

Explanation:

Should Chen buy the new machine is dependent on the Net Present Value of buying it. That is, over it's useful life, will it bring in cash flows that will cover discounted the outflows.

The cash flow of $18,300 is AFTER TAX so no need to worry about the given Marginal rate there.

Because the cash flows are even, we can use the Present Value of an Annuity formula which is,

PV = P( 1 -( (1+r)^ -n )/ r)

Where,

P is payment / cash flow

r is rate(WACC in this case)

n is the number of periods

Meaning the NPV formula will be,

= -Initial outflows + present value of inflows

= -104,000 + (P( 1 -( (1+r)^ -n )/ r))

= -104,000 + ( 18,300 ( 1 - ( 1 + 0.1) ^ 10)/0.01))

= - 104,000 + 112,445.58

= $8,445.58

$8,445.58 is the NPV they would gain from getting the New Machine.

Chen SHOULD buy the machine.

sound is invisible, but sometimes we can feel it. when a kettle-drum is thumped with a stick that time the tight drum skin moving up and down very quickly for some time and then it pumped sound waves into the air. loudspeakers also work in a similar manner.

components of a speaker:

electromagnet

in order to translate an electrical signal into an audible sound, an electromagnet is used in looudspeakers

  suspension

suspension is used to   center the voice coil in the gap of the magnet and it exerts a restoring force to keep it there. suspension is used to limits the maximum mechanical excursion of the diaphragm and voice coil.

voice coil

voice coil is a coil of wire which is attached to the apex of a loudspeaker cone. it provides the motive force to the cone by the reaction of a magnetic field to the current passing through it.

cone

in a   loudspeaker, a   thin, semi-rigid membrane attached to the voice coil, which moves in a magnetic gap due to which it vibrates   and produced sound. it is known as diaphragm and it can also be called a cone, though not all speaker diaphragms are cone-shaped.

surround

surround is also known as front suspension. surround is used to join the cone to the chassis. together with the suspension it controls the cone excursion, and it is also used to   determine how energy which is   travelling through the cone is absorbed, and how the speaker limits when it reaches the ends of its travel.

dustcap

dustcap is used to protect the voice coil from dust and dirt. it is a part of the cone.

how speaker work

the outer part of the cone is fastened to the outer part of the loudspeaker's circular metal rim. the inner part is fixed to   voice coil that sits just in front of a permanent magnet . when loudspeaker is hooked up to a stereo, electrical signals feed through the speaker cables into the coil. it will convert the coil into an electromagnet magnet . when electricity flows back and forth in the cables, the electromagnet either repels or attract the permanent magnet. this moves the coil back and forth, and it pull and push the loudspeaker cone. like a drum skin vibrating back and forth, the moving cone pumps sounds out into the air.in this way loudspeakers works.

answer; ///i believe the answer is (d) procedures to control the quailty of your product;