47.         (BONUS) Suppose that Disney wants to follow up on the success of Frozen, with a sequeal this fall. The movie will cost $165 million to produce (INVESTED TODAY), and the producers expect the movie to generate a cash flow of $160 million in the first year. After the first year, cash flows will decline to $15 million in year 2.

However, the movie will also create synergy within the company.

Disney will build a new Olaf ride at Epcot for $40 million (invested TODAY). Disney suspects that the ride will bring visitors to the park and increase merchandise sales. Disney estimates that sales will increase by $12 million per year in PERPETUITY. The after-tax operating margin on these sales is 50% for Disney. If the cost of capital is 10%, what is the combined NPV of this opportunity?

The distance between the eyepiece and the objective lens in a certain compound microscope is 21.4 cm. The focal length of the objective is 0.480 cm, and that of the eyepiece is 1.50 cm. Find the overall magnification of the microscope. (The near point of the eye is 25 cm. Assume that the object is placed at the focal point of the objective lens, and one places the eyepiece at the near point of the eye.)

a. Describe what happens to an uncharged conductor when a positive charge is brought near. Explain any forces that are exerted on the conductor. A sketch or drawing may be helpful.

b. Describe what happens to an uncharged insulator when a positive charge is brought near. Explain any (net) forces that are exerted on the insulator. A sketch or drawing may be helpful.

1. Type 1 subsequent events involve events that existed ___ the balance sheet date. (after, before, between, close to, near, on)

2. Type 1 subsequent events require ___ of the financial statements. (adjustment, consideration, disclosure, documentation, duplication)

3. Type 2 subsequent events come into existence ___ the balance sheet date. (after, before, between, close to, near, on)

4. Type 2 subsequent events occur after the balance sheet date but ___ the completion of fieldwork. (after, close to, near to, prior to, subsequent to)

5. Type 1 subsequent events come into existence due to new ___ becoming available. (auditors, clients, documentation, evidence, judgement)

Identify a company that has a HIGH DEGREE of market power. Specifically identify at least three barriers to entry that helped this company become a near monopoly, AND discuss HOW the company came to acquire these barriers to entry. Discuss the consequences of this near monopoly to potential consumer/business buyers for that company's products, and share your opinions on how you believe this firm could/should be regulated to reduce the dead-weight loss to society that is the consequence of all near monopoly industries. If you wish to discuss the benefits that accrue to consumers/businesses/society as a result of your company's product innovation, community service, etc., please feel free to do so.

As a developing countries make a transition to market-based economies, one of the first major capital investment is in "western-quality" hotels. Explain why brand-name hotel accommodations are a critical step in attracting foreign investment.

For a water park project, provide the following information.

Project Economies

 Policies

 Organizational Structure

 Marketing Strategy (Market Segmentation/4P’of Marketing)

 Funding Explanation

 Financial Plan

 Contingency Plans

 Survey/Evaluation and Analysis

Explain why you agree or disagree with the following statement.

Companies in the United States often choose to source items from foreign firms due to cost reasons. Some countries that function as manufacturing hubs have lower wage rates or relaxed working regulations which create cost savings that can be passed on to purchasing companies. Another possible explanation for sourcing items from other companies could be manufacturing efficiency. If a necessary component for a product is manufactured near another component then it may make sense to choose to source the component from that country instead of moving the components around and increasing costs.

From Martland (2012) 9.1 A dispute has broken out in a board meeting of a real estate investment firm. Mr. Park advocates developing a site as a parking lot that would require a minimal level of investment, produce revenues of close to $1 million per year, and have an IRR of more than 40%. Mr. Macy prefers a mixed development with several small stores at street level and apartments on the upper levels. He argues that the project will have a NPV of $6 to $10 million, using the company’s hurdle rate of 15%. ‘‘Fine,’’ says Mr. Park, ‘‘but your IRR is still less than 20%, so my project is better.’’ Which project would you support? and why?