Cornerstone Bank paid $90,000 for a check-sorting machine 10 years ago this month. The machine had an estimated life of 15 years and annual operating costs of $40,000, excluding depreciation. Although management is pleased with the machine, recent technological advances have made check-sorting ma-chines obsolete. Consequently, the machine now has a book value of $30,000, a remaining operating life of five years, and a salvage value of $0.The manager of operations is evaluating a proposal to acquire check scanning equipment for all branches. The new equipment would cost $50,000 and reduce annual operating costs to $20,000, ex-cluding depreciation. Because of expected technological improvements, the manager believes the new machine will have an economic life of four years and no salvage value at the end of that life. Prior to signing the papers authorizing the acquisition of the new machine, the president of the bank prepared the following analysis: Six-year savings ((S40,000 - $20,000) * 4 years) $80,000
Cost of new machine (50,000)
Loss on disposal of old machine (30,000)
Advantage (disadvantage) of replacement $0
After looking at these numbers, the manager rejected the proposal and commented that he was "tired of looking at marginal projects. This bank is in business to make a profit, not to break even. If you want to break even, go work for the government."
Required:
a. Evaluate the president's analysis.
b. Prepare a differential analysis of six-year totals for the old and the new machines.
c. Speculate on some limitations of the model or other issues that might be a factor in making a final decision.

Imagine us is a startup that offers high definition 3d prenatal ultrasounds for high-end customers. the service process includes four activities that are conducted in the sequence described below. (the time required for each activity is shown in parentheses): activity 1: welcome a patient and explain the procedure. (20 minutes)activity 2: prep the patient (e.g., show them to the room, apply ultrasound gel). (17 minutes) (*your id number represents the amount of time needed to complete this task)activity 3: take images. (5 minutes)activity 4: discuss diagnostic with patient. (20 minutes)at each location there are employees (servers) s1, s2, and s3. the assignment of tasks to servers is the following: s1 does activities 1 and 2.s2 does activity 3.s3 does activity 4.a. what is the capacity of this process (in customers per hour)? b. suppose 3 patients arrive every hour on average. ignoring any “start of day” or “end of day” effects, what are the utilizations of all three servers (%)? c. suppose each activity can be done by any server and any server can do any set of activities. however, each activity is done by only one server. for example, a possible assignment includes: s1 does activity 1, s2 does activity 2, and s3 does activities 3 and 4. of course, the original assignment of servers to activities is also feasible. what is the maximum capacity of the process (in customers per hour)? d. now consider the capacity measures in (c) and (a), what is the percentage change? why can you improve capacity without using additional resources? (there is no free lunch, right? )note: for all hw assignments, show your process of getting the results. only providing the final answers is not acceptable and will get 0%. if necessary, use a separate sheet of paper to show your work.