. The Green Shingle purchased a parcel of land 6 years ago for $299,500. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $28,000 a year. The Green Shingle is now considering building a hotel on the site. The current value of the land is $347,500. The firm has a mortgage secured by the property with $12,670 annual interest expenses, and would need to spend $64,000 to improve the land for construction. Which of the following is correct?
A. The purchase price of the parcel of land 6 years ago is a sunk
cost for the project.
B. The current value of the land is an opportunity cost for the
project.
C. The $12,670 annual interest expenses are a relevant cash flow
for the project.
D. The $64,000 expense to improve the land is an irrelevant cash
flow for the project.
E. A and B only.
F. A and C only.
In: Accounting
Which of the following services should recover full cost? Why? Which of these should use block-rate or peak-period pricing? Why? For which services is partial cost pricing justified?
a. Public library
b. On-demand genealogy research services offered by public library
c. Public transportation (bus and rail)
d. Public swimming pool
e. Public water park with wave pool and slides
f. Senior citizens center
g. Space for senior citizens to exhibit and sell arts, crafts, and antiques
h. Toll bridge
i. Mosquito spraying to control West Nile virus
j. Public housing
k. Disaster shelters
l. Large item (refrigerators, sofas) disposal in landfill
m. Household hazardous-waste disposal
In: Accounting
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 3 years ago for $4798465 in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $3848715. An engineer was hired to study the land at a cost of $823164, and her conclusion was that the land can support the new manufacturing facility. The company wants to build its new manufacturing plant on this land; the plant will cost $4984348 million to build, and the site requires $1185814 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?
In: Finance
Background
Hotel One is one of the two hotels serving Dayville, a small town
in the US Midwest. Fifty percent of its customers are out-of-town
visitors to the local college, 30 percent are visiting Dayville for
business purposes, and the remaining 20 percent of Hotel One’s
customers are leisure travelers. The hotel is within one mile from
campus, approximately four miles from the city center, and eight
miles from the airport. It is easy to reach by car, taxi, or city
bus. You are a manager of Hotel One. Your facility consists of 150
rooms, all of which are standard rooms with two double beds. Your
only competitor in Dayville, The Other Hotel, has fewer rooms
(100), but 20 of their rooms are luxury suites with king beds and a
sofa couch (the other 80 are standard rooms with two double beds).
This is the extent of the information provided to you at this
point.
Assignment
In order to better understand your unit’s operating environment,
you are asked to provide your estimate of the demand equation that
would account for various factors that affect your customer
traffic. This will be done by using regression techniques. The
first step in estimating a demand equation is to determine what
variables will be used in the regression. Please provide detailed
answers to the following questions:
1. What do you think should be the dependent variable in your
demand equation? What units of measurement for that variable are
you going to adopt? Please provide a detailed explanation for these
choices. 2. Please request information about up to five independent
(explanatory) variables for your demand equation. For each variable
you request, (i) provide reasons why you expect it to be important
for your analysis and (ii) explain the expected sign of the
relationship between the proposed independent variable and your
proposed dependent variable. 3. Show the exact demand equation you
are proposing to estimate. 4. List at least three other variables
that you considered as independent (explanatory) variables in the
regression, but chose not to include. Why did you choose not to
include them?
In: Economics
Propose an initial risk register for constructing a Recreational Park Project. The risk register should contain a minimum of 10 risks. * Use a template of your choice for risk register.
In: Operations Management
determine the beta for Starwood Hotel (HOT), Disney (DID), Abbott Laboratories (ABT), and Lockheed Martin (LMT). Discuss the possible reasons for the differences you observe among these companies.
In: Economics
You do not plan on going into marketing as a career option. You plan on being a general manager of a hotel or restaurant. Why do you need to study and understand marketing?
In: Accounting
Formulate the outline of a precision pricing policy for a four-star hotel designed to accommodate business guests as well as tourists from all over the world. Explain your answer
In: Operations Management
•“The Swedish company IKEA, the world’s largest furniture and home furnishings retailer, has adopted a global corporate policy that prohibits the use of old-growth forest wood or tropical wood in its furniture. All timber must come from sustainably managed forests. IKEA has eliminated the use of chlorine in its catalog paper; uses 100 percent recycled paper fibers, and is committed to eliminating waste in its retail stores. The ‘Trash is Cash’ program has transformed the thinking of retail store workers to see trash as a revenue-generating resource.”
•Identify and comment on the importance of each of the environmental impacts described in the following passage:
a.Eliminating chlorine in catalog paper.
b.Eliminating waste in retail stores.
c.“Trash is Cash” program
please answer this question as soon as you can
In: Accounting
Parvanh Backmirzie left two valuable Persian rugs with La Moquette Fine Rugs and Furnishings to be sold on consignment. But they were not sold and while waiting to be picked up by Backmirzie they were stolen during a break-in at the store. This action is brought by Backmirzie against the company owner of the store demanding compensation for the loss.
Explain the basis of this action, the arguments that could be advanced by both parties and the likely outcome. Would your answer be affected by the additional information that several days before the break-in the proprietor of the store phoned Backmirzie saying she should pick up the rugs as she had observed two men in the store looking at them and they appeared to be “casing” the store and she feared a break-in? But she delayed picking them up and the rugs were stolen.
In: Operations Management