The Titanic Shipbuilding Company has a noncancelable contract to
build a small cargo vessel. Construction involves a cash outlay of
$268,000 at the end of each of the next two years. At the end of
the third year the company will receive payment of $620,000. Assume
the IRR of this option exceeds the cost of capital.
The company can speed up construction by working an extra shift. In
this case there will be a cash outlay of $580,000 at the end of the
first year followed by a cash payment of $620,000 at the end of the
second year. Use the IRR rule to show the (approximate) range of
opportunity costs of capital at which the company should work the
extra shift. (Enter your answers as a percent rounded to 2
decimal places. Enter the smallest percent first.)
The company should work the extra shift if the cost of capital is between _______% and _____%.
I know the first blank is 22.82%, I just can't figure out the second one.
In: Finance
Distinguish between the remote and near environments. How do each support the strategic planning process?
Distinguish between the remote and near environments. How do each support the strategic planning process?
In: Economics
Lincoln Park Zoo in Chicago is considering a renovation that will improve some physical facilities at a cost of $1,800,000. Addition of new species will cost another $310,000. Additional maintenance, food, and animal care and replacement will cost $145,000 in the 1st year, increasing by 3 % each year thereafter. The zoo has been in operation since 1868 and is expected to continue indefinitely; however, it is common to use a 20-year planning horizon on all new investments. Salvage value on facilities after 20 years will be 40 % of initial cost. Interest is 7 %. An estimated 1.5 million visits per year are made to the zoo, and the cost remains free year-round. How much additional benefit per visit, on average, must the visitors perceive to justify the renovation? ..............$
Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places. The tolerance is ±0.01.
In: Economics
Oriole Supply Company, a newly formed corporation, incurred the
following expenditures related to Land, to Buildings, and to
Machinery and Equipment.
| Abstract company’s fee for title search | $936 | |||
| Architect’s fees | 5,706 | |||
| Cash paid for land and dilapidated building thereon | 156,600 | |||
| Removal of old building |
$36,000 |
|||
| Less: Salvage |
9,900 |
26,100 | ||
| Interest on short-term loans during construction | 13,320 | |||
| Excavation before construction for basement | 34,200 | |||
| Machinery purchased (subject to 2% cash discount, which was not taken) | 99,000 | |||
| Freight on machinery purchased | 2,412 | |||
| Storage charges on machinery, necessitated by noncompletion of | ||||
| building when machinery was delivered | 3,924 | |||
| New building constructed (building construction took 6 months from | ||||
| date of purchase of land and old building) | 873,000 | |||
| Assessment by city for drainage project | 2,880 | |||
| Hauling charges for delivery of machinery from storage to new building | 1,116 | |||
| Installation of machinery | 3,600 | |||
| Trees, shrubs, and other landscaping after completion of building | ||||
| (permanent in nature) | 9,720 |
Determine the amounts that should be debited to Land, to Buildings,
and to Machinery and Equipment. Assume the benefits of capitalizing
interest during construction exceed the cost of implementation.
Company uses net method to record discount
In: Accounting
A few years ago, the Boston Globe reported that the city of Boston planned to spend $14 million to convert the FleetCenter sports arena and entertainment center into an appropriate venue for the Democratic National Convention (DNC). The city engaged Shawmut Design and Construction in a contractual relationship to complete the work, which was supposed to start 48 days prior to the commencement of the DNC on July 26. However, when negotiations between Boston’s mayor and the police union broke down, the Boston Police Patrolmen’s Association took to the picket lines surrounding the FleetCenter and prevented construction crews from beginning the work. The Globe reported that “a truck attempting to deliver steel turned around after a crowd of union members stood at a chain-link gate in front of the arena, shouting ‘back it up,’ and ‘respect the line, buddy.’” Moreover, the Globe reported that “On-duty police officers, who had been instructed to prevent pickets from restricting access, did not intervene.” Given the tight construction schedule, construction delays reportedly cost about $100,000 per day.
Identify the principal–agent problem in this situation. Did the mayor and the city of Boston face the classical “hold-up problem” or another problem? Explain.
In: Economics
In accounting, what are the main similarities and differences between a 200 rooms of 3 stars hotel and a 200 slots of 3 stars camping sites?
In: Accounting
writing pretend you are working in a hotel busness place describe how would you apply use ethic to be successfull as an employee in that workplace
In: Operations Management
Identify (3) three revenue management “factors” that will have an impact on a hotel with respect to optimizing revenue generation. Explain and elaborate each concept.
In: Operations Management
Can a hotel or restaurant increase or maintain customer satisfaction after implementing its first revenue management program? Explain your answer.
In: Accounting
True / False
True / False
True / False
True / False
True / False
True/ False
Ture/ False
True/ False
True/ False
True/ False
True/ False
True/ False
True/ False
True/ False
True/ False
True/ False
True/ False
To reduce first costs of construction, structural design should be minimized without adversely affecting structural performance.
True/ False
In: Civil Engineering