NEW PROJECT ANALYSIS

You must evaluate a proposal to buy a new milling machine. The base price is $118,000, and shipping and installation costs would add another $6,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $64,900. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $9,500 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $44,000 per year. The marginal tax rate is 35%, and the WACC is 12%. Also, the firm spent $5,000 last year investigating the feasibility of using the machine.

1. How should the $5,000 spent last year be handled?
   1. Only the tax effect of the research expenses should be included in the analysis.
   2. Last year's expenditure should be treated as a terminal cash flow and dealt with at the end of the project's life. Hence, it should not be included in the initial investment outlay.
   3. Last year's expenditure is considered as an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis.
   4. Last year's expenditure is considered as a sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis.
   5. The cost of research is an incremental cash flow and should be included in the analysis.
   
   -Select-IIIIIIIVV

2. What is the initial investment outlay for the machine for capital budgeting purposes, that is, what is the Year 0 project cash flow? Round your answer to the nearest cent.
   $

3. What are the project's annual cash flows during Years 1, 2, and 3? Round your answer to the nearest cent. Do not round your intermediate calculations.

   Year 1 $

   Year 2 $

   Year 3 $

4. Should the machine be purchased?
   -Select-YesNo

Show that  Brewster angle does not exist for TE  polarized light.

. WHERE is TE transverse electric

If the tax rate is 40 percent, compute the before-tax real interest rate and the after-tax real interest rate.

(answer in percentages. If whole percentages, do not need decimals. If have decimals, round to nearest hundredth of percent)

Show all steps clearly

assume multiplying percentages by $100

before-tax real interest rate = nominal interest rate - inflation rate

reduction in nominal interest = nominal interest rate multiplied by tax rate

after-tax nominal interest rate = nominal interest rate - reduction in nominal interest

after-tax real interest rate = after-tax nominal - inflation rate

a. The nominal interest rate is 10 percent and the inflation rate is five percent.

Find:

nominal interest rate

before-tax real interest rate

reduction in nominal interest rate

after-tax nominal interest rate

after-tax real interest rate

b. The nominal interest rate is six percent and the inflation rate is two percent.

Find:

nominal interest rate

before-tax real interest rate

reduction in nominal interest rate

after-tax nominal interest rate

after-tax real interest rate

c. The nominal interest rate is four percent and the inflation rate is one percent.

Find:

nominal interest rate

before-tax real interest rate

reduction in nominal interest rate

after-tax nominal interest rate

after-tax real interest rate

Suppose that two firms form an oligopoly in a market with the demand function P = 200 − 2Q, where the market output (Q) is the sum of the outputs of the two firms: Q = q₁ + q₂. Firm 1 has total fixed cost of TFC1 = 50 and total variable cost of TVC1 = 20q₁. Similarly, firm 1 has total fixed cost of TFC2 = 50 and total variable cost of TVC₂ = 20q₂. Assume that the features of the Cournot duopoly model (simultaneous move) apply.

Answer the following questions, and write your answers in the Answer Sheet.

• What is the profit function for each firm (Π1 and Π2, each should be a function of q1 and/or q2)?

• What is the profit-maximizing output of each firm (q1 and q2)?

• What is the resulting market output (Q)?

• What is the price (P) associated with that output?

• What is the profit of each firm (Π1 and Π2), based on their profit-maximizing choices?

• Note: the profit functions should be equations, but the other answers should be numbers.

The pure expectations theory, or the expectations hypothesis, asserts that long-term interest rates can be used to estimate future short-term interest rates.

Based on the pure expectations theory, is the following statement true or false?

The pure expectations theory assumes that a one-year bond purchased today will have the same return as a one-year bond purchased five years from now.

False

True

The yield on a one-year Treasury security is 4.2300%, and the two-year Treasury security has a 5.7105% yield. Assuming that the pure expectations theory is correct, what is the market’s estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)

7.212%

6.1302%

8.2217%

9.1592%

Recall that on a one-year Treasury security the yield is 4.2300% and 5.7105% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.15%. What is the market’s estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)

7.8751%

6.908%

5.8718%

8.7732%

Suppose the yield on a two-year Treasury security is 5.83%, and the yield on a five-year Treasury security is 6.20%. Assuming that the pure expectations theory is correct, what is the market’s estimate of the three-year Treasury rate two years from now? (Note: Do not round your intermediate calculations.)

6.61%

6.53%

7.10%

6.45%

Select a product in UAE and make a Business Plan

1. Executive Summary

2. Company Description

3. Product Description

4. Marketing Plan

a. Swot Analysis

b. Competitive Analysis

c. Marketing Expense

d. Pricing Strategy

5. Operational Plan

6. Organization Chart

7. Startup Expenses and Capitalization

8. Financial Plan

9. Refining the Plan

.

Note: Please make a compelete Business Plan and Please do not copy from internet

2.

a. Does the US Fed follow inflation targeting?

b. What are the US Fed’s monetary policy objectives?

c. What are the tools of US monetary policy?

d. Explain how those tools impact on interest rates and money supply.

Sociology and Anthropology chapter 5

1.What are the four different kinds of groups & differentiate each

2.No man normally lives alone according to Aristotle. What are the consequences of living alone?

3.What is considered the most important kind of group in the modern society? Why?

Orange Turtle Group buys on terms of 3.5/15, net 45 from its chief supplier.

If Orange Turtle receives an invoice for $1,545.78, what would be the true price of this invoice?

a. $1,491.68

b. $1,267.93

c. $1,118.76

d. $1,044.18

The nominal annual cost of the trade credit extended by the supplier is _____.

a. 43.29%

b. 36.66%

c. 39.75%

d. 44.17%

The effective annual rate of interest on trade credit is _______.

a. 63.72%

b. 44.82%

c. 54.00%

d. 55.08%

Suppose Orange Turtle does not take advantage of the discount and then chooses to pay its supplier late. On average, Orange Turtle will pay its supplier on the 50th day after the sale. As a result, Orange Turtle can decrease its nominal cost of trade credit by _____ by paying late.

a. 11.99

b. 7.26

c. 11.36

d. 6.31

3.

a. What are the tools of Fiscal Policy?

b. Explain how government expenditure crowds out private investment.

c. Explain various components of government expenditure, and challenges the government faces to meet those expenditure each year.

In a project, what is generally the duration of each of the five process groups?

For example, Initiation takes about 14-21 days to complete. So, what about other process groups?

Work in Process—Assembly Department
Bal., 3,000 units, 25% completed 8,625 / To Finished Goods, 69,000 units

Direct materials, 71,000 units @ $2 142,000 /

Direct labor 190,200 /

Factory overhead 73,900 /

Bal. ? units, 25% completed ? /

Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

The Hazim Company is a wholesale distributor of automotive replacement parts. For purposes of

this question, assume on January 1, year 3, Hazim Co. adopted the dollar-value LIFO method of

determining inventory costs for financial and income-tax reporting. The following information relates

to this change:

Hazim has continued  to use the FIFO method for internal reporting purposes. Hazim's FIFO

inventories at December 31, Year 3, Year 4, and Year 5, were $100,000, $137,500, and $195,000,

respectively.

The FIFO inventory amounts are converted to dollar-value LIFO amounts using a single inventory

pool and annual cost indexes. Hazim uses the annual indexes developed by its industry trade

association: 1.25 for year 4 and 1.50 for year 5.

Calculate Hazim's dollar-value LIFO inventory at December 31, Year 4 and Year 5. Show all

calculations

2) Aristotle discusses several specific virtues and their accompanying vices in his Nicomachean Ethics, but he also notes that the possible virtues and vices associated with “shame” are dif-ferent, and that there isn’t, strictly speaking, a virtuous mean for shame. How is it that “shame” seems as if it can be analyzed in terms of virtue and vice, just as “fear” or “desire” are? Why would Aristotle say that despite this, there is no virtuous state for shame?