You are assessing the viability of operating an amusement park. The nominal revenues from ticket sales at the end of Year 1 will be $554176. They will increase by 4% per year in real terms. The only annual cost will be to lease the whole operation for $118845 per year. The leasing costs are nominal and will start at the end of Year 1. They will stay fixed in nominal terms.

Assume the inflation rate is 5% and the real discount rate is 10%. All cash flows occur at year-end. The company will not pay any taxes. The business will continue into perpetuity.

What is the NPV of the project?

Select one:

a. $6921840

b. $8029703

c. $9139137

d. $8940472

e. $8267772

Evans:

Evans Enterprises has bought a prime parcel of beachfront property and plans to build a luxury hotel. After meeting with the architectural team, the Evans family has drawn up some information to make preliminary plans for construction. Excluding the suites, which are not part of this decision, the hotel will have four kinds of rooms: beachfront non-smoking, beachfront smoking, lagoon view non-smoking, and lagoon view smoking. To decide how many of each of the four kinds of rooms to plan for, the Evans family will consider the following information.

After adjusting for expected occupancy, the average nightly revenue for a beachfront non-smoking room is $175. The average nightly revenue for a lagoon view non-smoking room is $130. Smokers will be charged an extra $15.

Construction costs vary. The cost estimate for a lagoon view room is $12,000 and for a beachfront room is $15,000. Air purifying systems and additional smoke detectors and sprinklers ad $3000 to the cost of any smoking room. Evans Enterprises has raised $6.3 million in construction guarantees for this portion of the building.

There will be at least 120 but no more than 180 beachfront rooms.

Design considerations require that the number of lagoon view rooms be at least 1.5 times the number of beachfront rooms, and no more than 2.5 times that number.

Industry trends recommend that the number of smoking rooms be no more than 50% of the number of non-smoking rooms.

There should be at least 45 rooms of each kind.

What is the optimal solution?

What is the optimal value of the objective function?

For what values of the objective coefficient will the above solution be valid? Include ranges for all decision variables.

If the budget increases to 7 million what is the change in the objective function? What is the shadow price for budget?

Kabul Star Hotel adjusts its accounts on a monthly basis. Most guests pay at the time they check out, and the amount collected is credited to Rental Revenue. A few guests pay in advance for rooms and these amounts are credited to Unearned Rental Revenue at the time of receipt.

a: Salaries earned by employees but not paid amount to $20,000.

b: As of Dec 31, Kabul Star Hotel has earned $11,000 rental revenue but has not received any amount yet.

c: On Dec 1, a room was rented to a corporation for six months at a monthly rental of $5,000. The entire six month rental of $30,000 was collected in advance and credited to Unearned Rental Revenue.

d: A Corolla Car to carry guests to and from the airport had been rented on Dec 15, at a daily rate of $250. No rental payment has yet been made.

e: Depreciation on the Hotel’s building is based on an estimated useful life of 15 years. The original cost of the building was $500,000 and a residual value of $50,000.

f: A one-year fire insurance policy had been purchased on Dec. 1, The premium of $24,000 for the entire life of the policy had been paid on Dec. 1 and recorded as Unexpired Insurance.

Instructions:

1. Prepare adjusting entries of the above transactions.

2. Prepare adjusted Trial Balance.

3. Prepare Financial Statements (Balance Sheet & Income Statement).

4. Prepare closing entries and prepare after closing trial balance.

The City of Little River had the following transactions related to the construction of a new courthouse:

1. January 2, 2017: 20-year, 6%, general-obligation serial bonds with a face value of $2,000,000 are issued at 101. Interest payments are made on January 1 and July 1 of each year. The premium was transferred into the debt-service fund. The general fund will fully fund each payment as it becomes due.
2. March 1, 2017: Land is purchased for a new park at a cost of $200,000.
3. March 1, 2017: A contract is signed for landscaping and construction of various structures in the park in the amount of $1,800,000.
4. June 15, 2017: $110,000 is transferred from the general fund for the July 1 payment due on the courthouse-fund serial bonds.
5. July 1, 2017: Interest ($60,000) and principal ($50,000) are paid on the courthouse-fund serial bonds.
6. December 1, 2017: The city receives an invoice for progress completed to date on the courthouse construction project in the amount of $385,000.
7. December 27, 2017: $58,500 is transferred from the general fund for the January 1, 2018 interest payment due on the courthouse-fund serial bonds.
8. Interest is accrued as of December 31, 2017, following the exception permitted by the GASB.

Prepare the journal entries required in both the capital-projects fund and the debt-service fund using the template provided in this module.

Purpose: The purpose of this lab is to study the behavior of static electric charges.

The answers to these questions can be found by watching the videos for PHY124 Lab # 7 Electric Charges. Read each of the statements below and type in the answers to the questions that follow.

When a charged rubber rod is brought near the top of an uncharged electroscope the leaves spread apart. When the rubber rod is removed from the location near the top of the electroscope the leaves fall back down. (Note: the rubber rod will have a net negative charge after being rubbed with the fur.)

1. This is caused by the movement of what electrically charged particle?

2.When rubber rod is brought near the electroscope, the electrically charged particles that moved (the ones that are the answer to question # 1 above) move from what to where?

3.Why do the leaves spread apart when the charged rubber rod is brought near the top of the uncharged electroscope?

4.When the charged rubber rod is removed from the location near the top of the electroscope, between what locations are the electrically charged particles moving as the leaves fall back down?

5. Why do the leaves fall back down after the charged rubber rod is removed from the location near the top of the electroscope?

When a charged glass rod is brought near the top of an uncharged electroscope the leaves spread apart. When the glass rod is removed from the location near the top of the electroscope the leaves fall back down. (Note: the glass rod will have a net positive charge after being rubbed with the silk.)

6. This is caused by the movement of what electrically charged particle?

7.When glass rod is brought near the electroscope, the electrically charged particles that moved (the ones that are the answer to question # 6 above) move from what to where?

8.Why do the leaves spread apart when the charged glass rod is brought near the top of the uncharged electroscope?

9.When the charged glass rod is removed from the location near the top of the electroscope, between what locations are the electrically charged particles moving as the leaves fall back down?

10.Why do the leaves fall back down after the charged glass rod is removed from the location near the top of the electroscope?

When a charged glass rod is carefully dragged across the ball at the top of an uncharged electroscope and then removed from the location of the electroscope the leaves spread apart and stay apart.

11. The electric charges that moved under these conditions have moved from what to where?

If after charging the electroscope with the glass rod, the glass rod is recharged and brought near the top of the electroscope, the leaves at the bottom of the electroscope try to spread apart even further.

12.Between what locations are the electric charges moving? (I am referring only to the electric charges that are actually moving when the recharged glass rod is brought near the top of the electroscope.)

If after charging the electroscope with the glass rod, the rubber rod is charged and brought near the top of the electroscope, the leaves at the bottom of the electroscope will fall down.

13. What is happening to cause the leaves to fall when the charged rubber rod is initially brought near the top of the electroscope? (This is done after the electroscope has been charged with the glass rod.)

If the charged rubber rod is brought close enough to the top of the electroscope (with the electroscope initially charged with the glass rod) the leaves can be made to spread apart again after they are made to fall.

14.What is happening to cause the leaves to spread apart again (after they fall)?

When the rubber rod is rubbed with the fur, the rubber rod develops a net negative charge and the fur develops a net positive charge. When the glass rod is rubbed with the silk, the glass rod develops a net positive charge and the silk a net negative charge. But if plastic rod is rubbed with either the fur or silk the plastic rod develops a net negative charge.

15. What determines which material gets what type of charge when two different insulators are rubbed together?

16. What do we mean when we say that a material is a good electrical conductor?

17. What do we mean when we say that a material is a good electrical insulator?

18. What determines whether a material is going to be a good electrical conductor or a good electrical insulator?

19. Coulomb’s Law tells us that objects with opposite electric charges will attract each other and objects with similar electric charges will repel by an amount that is directly proportional to the product of the charges on those objects and inversely proportional to the square of the distances between them. With that being the case, how is it that an electrically neutral object (like water) could be attracted to an object with a net electric charge?

Could you answer as many as possible?

Can someone explain the calculations for cost basis and how to compute it?

Herberger Oil & Gas Company paid $10 million for the drilling rights to a 1,000 acre tract of land near Midland, Texas. On the basis of several exploratory wells that had cost an aggregate of $400,000 to drill, petroleum engineers estimated that the tract of land might contain as much as 500,000 barrels of oil. 4 additional development wells were drilled at a cost of approximately $200,000 each. Calculate the depletion expense for the first year assuming that 100,000 barrels are extracted. Calculate the depletion expense for the second year assuming that 150,000 barrels are extracted. Round answers to the nearest whole number Year 1 - $? Year 2 - $? What is the cost basis of the remaining reserves at the end of the second year? $?