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Problem 6-7

Question

Problem 6-7For the set of tasks given

below, do the following:

Task                       Task Time(seconds)   Immediate Predecessor

A                            45                                          –

B                            11                                         A

C                              9                                         B

D                            50                                         –

E                            26                                         D

F                            11                                          E

G                            12                                         C

H                            10                                         C

I                               9                                      F, G, H

J                            10                                           I

                             193                      

________________________________________

b. Determine the minimum and maximum cycle times in seconds for a desired output of 500 units in a seven-hour day. (Round your answers to 1 decimal place.)

The minimum cycle time              seconds

The maximum cycle time             seconds

________________________________________

c. Determine the minimum number of workstations for output of 500 units per day. (Round up your answer to the next whole number.)

Minimum number of workstations             

d. Balance the line using the greatest positional weight heuristic. Break ties with the most following tasks heuristic. Use a cycle time of 50 seconds.

Work stations            Following Tasks

I                              

II                             

III                            

IV                            

V                             

________________________________________

e. Calculate the percentage idle time for the line using the 50 second cycle time. (Round your answer to 1 decimal place. Omit the “%” sign in your response.)

Percentage of idle time             %

 
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annual interest

Question

Harold Reese must choose between two bonds:  Bond X pays $88 annual interest and has a market

value of $900. It has 10 years to maturity.

Bond Z pays $98 annual interest and has a market value of $870. It has five years to maturity.

Assume the par value of the bonds is $1,000.

a. Compute the current yield on both bonds. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

b. Which bond should he select based on your answers to part a?

Bond Z Bond X

 c. A drawback of current yield is that it does not consider the total life of the bond. For example, the approximate yield to maturity on Bond X is 10.43 percent. What is the approximate yield to maturity on Bond Z? The exact yield to maturity? (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

d. Has your answer changed between parts b and c of this question?

Yes Norev: 04_18_20

 
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bond

Question

Assume a zero-coupon bond that sells for $347 will mature in 15 years at $1,100.
What is the

effective yield to maturity? 

 
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bonds

Question

You buy a 10 percent, 15-year, $1,000 par value floating rate bond in 1999. By the year 2014, rates on bonds of

similar risk are up to 12 percent.

What is your one best guess as to the value of the bond?

 
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