King Fisher Aviation is considering an investment in a new technology for a drone project with a price of $16 million. Their current technology has a book value of $5 million and a market value of $5 million. The new technology is expected to have a five (5) year life, and the old technology has three (3) years left in which it can be expected to be used. If the firm replaces the old technology with the new technology it expects to save $5.7 million in operating costs each year over the next four years. If the firm purchases the new technology, it will also need an investment of $300,000 in net working capital. The required return on the investment is 12 percent, and the tax rate is 39 percent.
What are your recommendations on the investment project? Explain your reasoning?
What are your recommendations for investment in the new technology?
In: Finance
King Fisher Aviation is considering an investment in a new technology for a drone project with a price of $16 million. Their current technology has a book value of $5 million and a market value of $5 million. The new technology is expected to have a five (5) year life, and the old technology has three (3) years left in which it can be expected to be used. If the firm replaces the old technology with the new technology it expects to save $5.7 million in operating costs each year over the next four years. If the firm purchases the new technology, it will also need an investment of $300,000 in net working capital. The required return on the investment is 12 percent, and the tax rate is 39 percent.
What are the NPV and IRR of the decision to replace the old technology?
show work please
In: Finance
Inc. Technology reported the results of consumer survey in which 300 Internet users indicated their level of agreement with the following statement: "The government needs to be able to scan Internet messages and user communications to prevent fraud and other crimes." The possible responses were "agree strongly", "agree somewhat", "disagree somewhat", and "disagree strongly". The number of Internet users in each category is summarized in the table.
Response Number
Agree strongly 60
Agree somewhat 110
Disagree somewhat 80
Disagree strongly 50
Use an appropriate test at 5% level to determine whether the true proportions of Internet users in each response category differ.
In the space below, write down the following:
Value of the test statistic=
Critical value of the test =
Your conclusion =
In: Statistics and Probability
Problem 3: A firm has the following production function: ?(?1, ?2 ) = ?1 + 4?2 A) Does this firm’s technology exhibit constant, increasing, or decreasing returns to scale? B) Suppose the firm wants to produce exactly ? units and that input 1 costs $?1 per unit and input 2 costs $?2 per unit. What are the firm’s conditional input demand functions? C) Write down the formula for the firm’s total cost function as a function of ?1, ?2, and ?. D) If ?1 = 1, ?2 = 2, what is the cost minimizing choice of ?1 and ?2 for Bob to produce 100 units of output? E) If ?1 = 1, ?2 = 2, what is the minimum cost of producing one unit of output?
In: Economics
Better mousetraps has come out with an improved product and the world is beating a path to its door. As a result, the company projects a 20% growth for 4 years. By then the other firms will copy its technology and drive down profit margins and the sustainable growth rate will fall to 5%. The most recent annual dividend was $1 per share.
In: Finance
Rosenberg (2004) reported the invention of the new machine that serves as a mobile station for receiving and accumulating packed flats of strawberries close to where they are picked, reducing workers’ time and the burden of carrying full flats of strawberries. A machine-assisted crew of 15 pickers produces as much output, q*, as that of an unaided crew of 25 workers. In a 6-day, 50-hour workweek, the machine replaces 500 worker hours. At an hourly wage cost of $10, a machine saves $5,000 per week in labor costs or $130,000 over a 26-week harvesting season. The cost of machine operation and maintenance expressed as a daily rental is $200, or $1,200 for a 6-day week. Thus, the net savings equal $3,800 per week or $98,800 for 26 weeks.
In: Economics
1. The responsibility for evaluating new technologies, new ideas, and new capabilities and identifying those that are most relevant to the organization is typically assigned to the __________.
A. chief information security officer (CISO)
B. chief innovation officer (CIO)
C.chief security officer (CSO)
D.chief information systems administrator (CISA)
E. chief technology officer (CTO)
2. When network access and Internet services are __________, it means that the users can do all their required processing without any problems nearly all the time.
A.congested
B.reliable
C.proactive
D.restricted
E.encrypted
3. In ten years, the IS function will ________.
A.no longer be relevant most organizations
B.play a limited role in the organization
C.usually be performed by the CEO of the organization
D.finally be seen as a key player for gaining competitive advantage
E. be replaced by outsourcing firms
4. Which of the following is NOT a user's responsibility?
A.Learning the correct procedures for using the applications you need.
B.Using computers and mobile devices according to your employer's computer-use policy.
C.Protecting your password.
D.Installing only authorized programs.
E.Obtaining reliable network and Internet connections.
5. The IS department has responsibility for which of the following functions?
A.Developing marketing campaigns to be implemented using social media
B.Planning the use of IS to accomplish organizational goals and strategy
C.Training employees to work alongside robots
D.Hiring a company to run the cafeteria
E.Prosecuting hackers
In: Operations Management
what is your evaluation of sirius xm's finanancial performance from 2010 to 2013?
In: Finance
q1. give an introduction and conclusion about
Germany economy from 1980 to 2010
In: Economics
Why did the Dodd-Frank Act (2010) not successfully regulate the financial sector?
In: Finance