A manufacturer is considering a switch from manufacturers’ representatives to an internal sales force. The following cost estimates are available. Manufacturers’ reps are paid 8.1% commission and incur $600,000 in fixed costs, while an internal sales force has fixed costs projected at $1,900,000 and would receive 2.6% commission. Assume that sales revenue is double the breakeven volume or the point at which the manufacturer would be indifference between reps and an internal sales force. At this volume, how much would the manufacturer save, assuming the company had switched to an internal sales force? Report your answer in dollars.

Herman has a honey bee hive. The hive starts with a population of 50,000 bees, but because of environmental stresses the population decreases by 10% every year. Each bee lives exactly one season, and produces 1 gram of honey over its lifetime.

a) How many bees are left at the end of the fifth year?

b) How much total honey does the hive produce over five years?

explain all formulas and steps

why should cash flow be projected for a new product and what other factors should be included in the analysis?

A corporate bond with a coupon rate of 6% has been issued at a price of K102.50 and k100.00 nominal and it is redeemable at its par value of K100.00 at the end of year 5. the bond pays coupon interest annually.

Reguired

Calculate the bonds yield to maturity

calculate the bonds macaulay duration and state the impact of the bonds price of an increase in interest rates by 50 basis points

St. Johns River Shipyards' welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be used for quite a while longer. The new welder will cost $184,500 and have an estimated life of 8 years with no salvage value. The new welder will be much more efficient, however, and this enhanced efficiency will increase earnings before depreciation from $29,000 to $69,000 per year. The new machine will be depreciated over its 5-year MACRS recovery period, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The applicable corporate tax rate is 40%, and the project cost of capital is 11%. Should the old welder be replaced by the new one? Do not round intermediate calculations. Round your answer to the nearest cent. Negative value, if any, should be indicated by a minus sign.

Calculate net income based on the following information. Sales are $250, cost of goods sold is $160, depreciation expense is $35, interest paid is $20, and the tax rate is 34%.

It is January 1 2020 and you have recently started a new company, Green- Drone, that produces flying drones for garden maintenance. You are still at the product development stage but would like to evaluate the financial feasibility of the project. Here are some information about the company:

• - R&D expenditures. In order to develop the drones, you need to hire an engineer for 5 years at an annual salary of $96,000. The salary is paid monthly at the end of the month in equal amounts, i.e. 96,000/12 per month for the first year. To stay competitive, you expect you will have to grow the annual salary at a rate of 3%, starting the next year. The engineer contract starts today, i.e., on January 1 2020.

• - Production cost. Once the product is developed in 5 years (Jan- uary 1 2025), you will start the production of your drones. Each product is expected to cost $265 to produce. The cost is to be paid to the supplier at the beginning of a month.

• - Pricing and sales. You plan to sell the drones for $325 a unit over the next three years, i.e., until January 1 2028. All sales for products produced in a month are collected at the end of the month.

  The appropriate discount rate r is 5%, annually compounded. Denoting the quantity of drones sold in a month by Q. How many drones do you need to sell per month to make this project profitable (i.e., generate a positive NPV)?

The Lesseig Company has an opportunity to invest in one of two mutually exclusive machines that will produce a product the company will need for the next eight years. Machine A costs $8.5 million but will provide after-tax inflows of $4.8 million per year for 4 years. If Machine A were replaced, its cost would be $10.5 million due to inflation and its cash inflows would increase to $4.9 million due to production efficiencies. Machine B costs $14.9 million and will provide after-tax inflows of $4.2 million per year for 8 years. If the WACC is 12%, which machine should be acquired? Explain. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places.

Machine (A) OR (B)  is the better project and will increase the company's value by $_____ millions, rather than the $____ millions created by Machine (A) OR (B)

A mining company is deciding whether to open a strip mine, which costs $2.5 million. Cash inflows of $14 million would occur at the end of Year 1. The land must be returned to its natural state at a cost of $12 million, payable at the end of Year 2.

1. Should the project be accepted if WACC = 10%?
2. Should the project be accepted if WACC = 20%?
3. What is the project's MIRR at WACC = 10%? Round your answer to two decimal places. Do not round your intermediate calculations.
4. What is the project's MIRR at WACC = 20%? Round your answer to two decimal places. Do not round your intermediate calculations.
5. Does MIRR lead to the same accept/reject decision for this project as the NPV method?
6. Does the MIRR method always lead to the same accept/reject decision as NPV? (Hint: Consider mutually exclusive projects that differ in size.)

This is all one question, any information will help, thank you in advance!

You own a 15​-year, ​$1,000 par value bond paying 7.5 percent interest annually. The market price of the bond is ​$775​, and your required rate of return is 12 percent.

a. Compute the​ bond's expected rate of return.

b. Determine the value of the bond to​ you, given your required rate of return.

c. Should you sell the bond or continue to own​ it?

St. Johns River Shipyards' welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be used for quite a while longer. The new welder will cost $184,500 and have an estimated life of 8 years with no salvage value. The new welder will be much more efficient, however, and this enhanced efficiency will increase earnings before depreciation from $29,000 to $69,000 per year. The new machine will be depreciated over its 5-year MACRS recovery period, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The applicable corporate tax rate is 40%, and the project cost of capital is 11%. Should the old welder be replaced by the new one? Do not round intermediate calculations. Round your answer to the nearest cent. Negative value, if any, should be indicated by a minus sign. The NPV of the project is $ Old welder be replaced.

A pension fund manager is considering the following three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.2%. The probability distribution of the risky funds are:

The correlation between the fund returns is .0222.

Suppose now that your portfolio must yield a return of 12% and be efficient, that is, on the best feasible CAL.

a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-1. What is the proportion invested in the T-bill fund? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-2. What is the proportion invested in each of the two risky funds? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

You own a 10-year, $1,000 par value bond paying 8 percent interest annually. The market price of the bond is $850 and your required rate of return is 12 percent.

a. Compute the​ bond's expected rate of return.

b. Determine the value of the bond to​ you, given your required rate of return.

c. Should you sell the bond or continue to own​ it?