Vice President of Manufacturing: Once the new plant building is complete, we expect to purchase $1.5 million worth of equipment by the end of 2015. I anticipate that early next year (2016), an additional $200,000 will be needed to test and install the equipment before we can start production. If revenues continue to rise, I expect we will have to invest an additional $1,000,000 in equipment in 2017. COO: We`ve really grown lately. I wouldn`t be surprised if we were to expand our new plant by at least 35% in 2017. Fortunately, we expect inflation to have minimal impact on construction costs over the next four years. Furthermore, I expect the cost of enlargement to be proportional to the scale of enlargement. Chief Information Officer: We need to move our information systems to wireless networks. It makes no sense to do so until the new factory building is completed and the product is manufactured. In 2016, when the plant is operational, we should equip the entire plant with wireless technology. I think it would cost us $800,000 today to install the technology.
However, prices have fallen by 25% per year, so it should be cheaper at a later date. Countries with the highest and lowest real GDP growth rates What is the unemployment rate? A. 70% B. 50% C. 20% D. 10% E. 5% Use the information for a hypothetical saving in the table below to answer the questions Use the interview information above to create a capital budget for Omicron Inc. for the years 2014-2017. CFO: I`m excited about our long-term outlook. My only short-term concern is managing our cash flow while we spend the $4,000,000 construction costs on the portion of the new plant building that is scheduled for completion in 2014. Since January 1, 2014, the controller of Omicron Inc.
has been planning investments for the years 2014-2017. The following interviews allowed the Comptroller to gather the necessary information for the capital budget: Director of Facilities: In late 2013, a construction contract was signed for the construction of a new plant building at a contract price of $10,000,000. Construction is expected to begin in 2014 and be completed in 2015. [The U.S. Economy in a Global Context] The World Factbook (www.cia.gov/library/publications/the-world-factbook/) of the U.S. Central Intelligence Agency has many tables containing global data. Go to the site, click on “Guide to country comparisons” in the middle of the page, then on “Economy” and you will find the following: Population aged 16 and over = 200,000 Labour force = 100,000 Number of part-time employees = 20,000 Number of full-time employees = 70,000begin{array} { l } { text { Age of population } 16 text { and older } = 200,000 } { text { Labour force } = 100,000 } { text { Number of full-time employees partial } = 20,000 } { text { Number of full-time employees } = 70,000 } end{array} Population aged 16 and over = 200,000 Labour force = 100,000 Number of part-time employees = 20,000 Number of full-time employees = 70,000.