With the ACA, there is a new way the hospitals are
paid. It is called Value-Based Purchasing (VBP).
do you feel that the government's new value-based purchasing will
work? Please explain your answer.
In: Economics
They decide to shop for furnishings for the new house. They choose items that amount to $3600.00. The store has 2 fixed installment loan options for purchasing: Option 1: 20% down payment and financing at 6% simple interest per year for 3 years. Option 2: no down payment and financing at 6.35% simple interest for 4 years. Answer each of the following questions separately, showing all your work to reach each answer.
A. Which option will result in smaller total finance charge? What will that total finance charge be?
B. Which option will result in the smaller monthly payment? What will that monthly payment be?
C. They decide to defer any purchases and invest a $3600 bonus that Maria will be getting from work in a savings account. The interest rate is 1.6% compounded every month. How much interest will they earn in 3 years?
D. They decide to defer any purchases and loan the $3600 bonus to a needy relative at 2.5% simple interest per year. How long will the term of the loan need to be if they want to earn $400 in interest (assuming the loan is not paid off early).
In: Finance
NPV and maximum return
A firm can purchase new equipment for a $150,000 initial investment. The equipment generates an annual after-tax cash inflow of $44,400 for 4 years.
a. Determine the net present value
(NPV)
of the asset, assuming that the firm has a cost of capital of
10%.
Is the project acceptable?
b. Determine the maximum required rate of return that the firm can have and still accept the asset.
In: Finance
The following data relate to KATZEN Sales Inc., a new company:
|
Planned and actual production |
200,000 units |
|
Sales at $45 per unit |
180,000 units |
|
Manufacturing costs: |
|
|
Variable |
$18 per unit |
|
Fixed |
$800,000 |
|
Selling and administrative costs: |
|
|
Variable |
$6 per unit |
|
Fixed |
$925,000 |
Required: A. Determine the number of units in the ending finished-goods inventory B. Calculate the cost of the ending finished-goods inventory using variable costing C. Calculate the cost of the ending finished-goods inventory using absorption costing D The difference between net income using variable costing & absorption costing is _______ E. Determine the company's variable-costing net income. G. Determine the company's absorption-costing net income. H. Explain the difference in net income amounts. Support your explanation with a reconciliation.
In: Accounting
Which of the following evolutionary processes creates new genetic variation?
| a. | Natural selection | |
| b. | Genetic drift | |
| c. | Mutation | |
| d. | Both a and b | |
| e. | Both b and c |
In: Biology
A new computer system will require an initial outlay of $20,000, but it will increase the firm’s cash flows by $4,300 a year for each of the next 8 years.
a. Calculate the NPV and decide if the system is worth installing if the required rate of return is 9%. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)
b. Calculate the NPV and decide if the system is worth installing if the required rate of return is 14%. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)
c. How high can the discount rate be before you would reject the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
In: Finance
|
A firm is considering an investment in a new machine with a price of $18.06 million to replace its existing machine. The current machine has a book value of $6.06 million and a market value of $4.56 million. The new machine is expected to have a four-year life, and the old machine has four years left in which it can be used. If the firm replaces the old machine with the new machine, it expects to save $6.76 million in operating costs each year over the next four years. Both machines will have no salvage value in four years. If the firm purchases the new machine, it will also need an investment of $256,000 in net working capital. The required return on the investment is 11 percent, and the tax rate is 35 percent. Assume the company uses straight-line depreciation. |
|
a) What is the NPV of the decision to purchase a new machine? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
|
In: Finance
In: Economics
A researcher is interested in the effects of a new weight loss supplement. Participants in this double-blind study are randomly assigned to either a group that receives the new supplement or a group that receives a placebo. Participants are weighed before starting the program. After 6 weeks of taking either the new supplement or the placebo, participants return to the lab to be weighed.
Provide the appropriate null and alternative hypotheses.
Determine which type of analysis would be appropriate to answer
this research question. Be specific and support your answer using
the textbook or other course materials.
Name the independent and dependent variables used in the analysis.
What are the levels of the independent variable?
Indicate the levels of measurement for each variable.
Describe the Type I error for this study.
Describe the Type II error for this study.
In: Statistics and Probability
Question Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $100 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $75 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is not in the company’s regular sellingterritory, so there will be a $5 per unit shipping expense in addition to the regular variable selling and administrative expenses Unit 80,000 Units
Direct materials . $12.50 $1,000,000
Direct labor 15.00 1,200,000
Variable manufacturing overhead . 10.00 800,000
Fixed manufacturing overhead 17.50 1,400,000
Variable selling and administrative expenses . 14.00 1,120,000
Fixed selling and administrative expenses . 13.00 1,040,000
Totals $82.00 $6,560,000
1. Determine whether management should accept or reject the new business.
2. What nonfinancial factors should management consider when deciding whether to take this order?
In: Accounting