Nautical Creations is one of the largest producers of miniature ships in a bottle. An especially...

Nautical Creations is one of the largest producers of miniature ships in a bottle. An especially complex part of one of the ships needs special production equipment that is not useful for other products. The company purchased this equipment early in 2016 for $200,000. It is now early in 2020, and the manager of the Model Ships Division, Jeri Finley, is thinking about purchasing new equipment to make this part. The current equipment will last for six more years with zero disposal value at that time. It can be sold immediately for $30,000. The following are last year's total manufacturing costs, when production was 7,800 ships:

Direct materials $28,080
Direct labor 30,030
Variable overhead 12,480
Fixed overhead 34,320
Total $104,910

The cost of the new equipment is $135,000. It has a six year useful life with an estimated disposal value at that time of $50,000. The sales representative selling the new equipment stated, "The new equipment will allow direct labor and variable overhead combined to be reduced by a total of $2.05 per unit." Finley thinks this estimate is accurate, but also knows that a higher quality of direct material will be necessary with the new equipment, costing $0.23 more per unit. Fixed overhead costs will decrease by $4,700.

Finley expects production to be 8,350 ships in each of the next six years. Assume a discount rate of 5%.

REQUIRED

1. What is the difference in net present values if Nautical Creations buys the new equipment instead of keeping their current equipment?

Present Value of $1.00

Period 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%
    1 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893
    2 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797
    3 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712
    4 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636
    5 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567
    6 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507
    7 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452
    8 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404

Present Value of an Annuity of $1.00

Period 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%
    1 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893
    2 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690
    3 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402
    4 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037
    5 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605
    6 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111
    7 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564
    8 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968

In: Accounting

Explain the following observations: Carbon has two important oxides which are both gases at room temperature....

Explain the following observations: Carbon has two important oxides which are both gases at room temperature. In contrast, silicon dioxide (silica) is a solid with a very high melting point.

In: Chemistry

2 Builder Pattern java -set up builder pattern to run this RobotBuilder builder = new RobotBuilder();...

2 Builder Pattern
java
-set up builder pattern to run this 

RobotBuilder builder = new RobotBuilder();
builder.setRam(1000);
builder.setStorage(10000);
builder.setWheels(2);
builder.setName("Robo Ron");
Robot robot = builder.build();

builder = new RobotBuilder();
builder.setName("Robo Rene");
builder.setRam(500);
builder.setStorage(15000);
Robot robot2 = builder.build();

In: Computer Science

A small object with mass 3.70 kg moves counterclockwise with constant speed 1.70 rad/s in a...

A small object with mass 3.70 kg moves counterclockwise with constant speed 1.70 rad/s in a circle of radius 2.80 m centered at the origin. It starts at the point with position vector 2.80î m. Then it undergoes an angular displacement of 9.20 rad. (a) What is its new position vector? m (b) In what quadrant is the particle located and what angle does its position vector make with the positive x-axis? at ° (c) What is its velocity? m/s (d) In what direction is it moving? ° from the +x direction. (e) What is its acceleration? m/s2 (f) Make a sketch of its position, velocity, and acceleration vectors. This answer has not been graded yet. (g) What total force is exerted on the object? N

In: Physics

1) Quantitative Problem 1: Assume today is December 31, 2019. Barrington Industries expects that its 2020...

1) Quantitative Problem 1: Assume today is December 31, 2019. Barrington Industries expects that its 2020 after-tax operating income [EBIT(1 – T)] will be $430 million and its 2020 depreciation expense will be $60 million. Barrington's 2020 gross capital expenditures are expected to be $100 million and the change in its net operating working capital for 2020 will be $30 million. The firm's free cash flow is expected to grow at a constant rate of 6.5% annually. Assume that its free cash flow occurs at the end of each year. The firm's weighted average cost of capital is 8.9%; the market value of the company's debt is $2.8 billion; and the company has 190 million shares of common stock outstanding. The firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. Also, the firm has zero non-operating assets. Using the corporate valuation model, what should be the company's stock price today (December 31, 2019)? Do not round intermediate calculations. Round your answer to the nearest cent.
Q. $ ? per share

2) Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.

Year 1 2 3 4 5
FCF -$22.17 $38.7 $43.7 $51.4 $56.8

The weighted average cost of capital is 12%, and the FCFs are expected to continue growing at a 3% rate after Year 5. The firm has $26 million of market-value debt, but it has no preferred stock or any other outstanding claims. There are 20 million shares outstanding. Also, the firm has zero non-operating assets. What is the value of the stock price today (Year 0)? Round your answer to the nearest cent. Do not round intermediate calculations.
Q. $ ? per share

3) According to the valuation models developed in this chapter, the value that an investor assigns to a share of stock is dependent on the length of time the investor plans to hold the stock.

Q. The statement above is -Select-true/false

4) Quantitative Problem 3: Assume today is December 31, 2019. Imagine Works Inc. just paid a dividend of $1.20 per share at the end of 2019. The dividend is expected to grow at 18% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2019)? Do not round intermediate calculations. Round your answer to the nearest cent.

Q. $ ? per share

In: Finance

QUESTION 3 On 1 January 2018, MM Bhd acquired a fast food franchise for RM300,000. The...

QUESTION 3

On 1 January 2018, MM Bhd acquired a fast food franchise for RM300,000. The legal life of the franchise is seven (7) years while the economic useful life is six (6) years. On 31 December 2018, the franchise was revalued at RM340,000. Due to the outbreak of the COVID-19 at the end of year 2019, sale of fast food from the franchise is declining. Impairment test conducted showed that the fair value of the franchise was RM250,000. At this date the current trend of the outbreak indicates further sale declining in the next six (6) months. The company adopts the revaluation model to record the franchise.

The company also has legal title to a soft drink brand which was acquired on 1 January 2019 at RM350,000. The brand product is expected to generate cash inflow indefintitely. However, there is no active market available for this type of soft drink. On 31 December 2019, impairment test conducted showed the recoverable amount of the brand was RM310,000.

Financial year end for the company is 31 December.

REQUIRED:

  1. Prepare journal entries to record the accounting treatment related to the franchise of MM Bhd on 31 December 2018 and 31 December 2019.
  2. Explain the accounting treatment for the soft drink brand of MM Bhd on 31 December 2019.

In: Accounting

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In: Physics

This is meant to be done in C. Write a program using putchar() and getchar() that...

This is meant to be done in C. Write a program using putchar() and getchar() that reads characters form the keyboard and write to the screen. Every letter that is read should be written three times and followed by a newline. Any newline that is read should be disregarded. All other characters should just be copied to the screen.

I am stuck on this any help please?

In: Computer Science

(a) For 2.92 moles of a monatomic ideal gas taken through the cycle in the figure,...

(a) For 2.92 moles of a monatomic ideal gas taken through the cycle in the figure, where V1 = 5.00V0 what is W/p0V0 as the gas goes from state a to state c along path abc? What is ΔEint/p0V0 in going (b) from b to c and (c) through one full cycle? What is ΔS in going (d) from b to c and (e) through one full cycle?

In: Physics

Phosphorus pentachloride decomposes according to the chemical equation. A 0.457 mol sample of PCl5(g) is injected...

Phosphorus pentachloride decomposes according to the chemical equation.

A 0.457 mol sample of PCl5(g) is injected into an empty 4.85 L reaction vessel held at 250

In: Chemistry

What is the meaning of the phrase “liberal arts”? Why is a liberal arts education valuable...

What is the meaning of the phrase “liberal arts”? Why is a liberal arts education valuable in the workplace?

In: Psychology

You are evaluating two different milling machines to replace your current aging machine. Machine A costs...

You are evaluating two different milling machines to replace your current aging machine. Machine A costs $256654, has a three-year life, and has pretax operating costs of $67338 per year. Machine B costs $432641, has a five-year life, and has pretax operating costs of $30018 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $44596. Your tax rate is 34 % and your discount rate is 10 %. What is the EAC for Machine A? (Round answer to 2 decimal places. Do not round intermediate calculations)

In: Finance

Consider the following premerger information about Firm A and Firm B:                               &nbs

Consider the following premerger information about Firm A and Firm B:

                                       Firm A       Firm B

Total Earnings               $3,150         $1,000

Shares Outstanding       1,500            300

Price per share               $43               $47

Assume that Firm A acquires Firm B via exchange of stock price of $49 for each share of b's stock. Both A and B have no debt outstanding.

a) What will the earnings per share (EPS) of Firm A be after the merger?

b) What will Firm A's price per share be after the merger if the market incorrectly analyzes this reported earnings growth (that is, the price-earnings ratio does not change)?

c) What will the price earnings ratio of the post merger firm be if the market correctly analyzes the transaction?

d) If there are no synergy gains, what will the price of A be after the merger? What will the price-earnings ratio be? What does your answer for the share price tell you about the amount A bid for B? Was it too high? Too low? Explain?

In: Finance

1) A system of particles is known to have a total kinetic energy of zero. What...

1) A system of particles is known to have a total kinetic energy of zero. What can you say about the total momentum of the system?

(2) A bowling ball and a Ping-Pong ball are rolling toward you with the same momentum. If you exert the same force to stop each one, which takes a longer time to bring to rest?

(3) A cannon sits on a stationary railroad flatcar with a total mass of 1000 kg. When a 10-kgcannonball is fired to the left at a speed of 50 m/s, what is the recoil speed of the flatcar?

please explain and answer all 3

In: Physics

For the diprotic weak acid H2A, Ka1 = 2.6

For the diprotic weak acid H2A, Ka1 = 2.6

In: Chemistry