In: Operations Management
Case study Description Faisal is a successful architect who is trying to use the extra time that he has during the coronavirus crisis in a simple way. He decides to focus on an ambitious new project. In this project, he and his team of architects, engineers, and developers will build a house specifically for living on the sea. It will be stable and safe in waves up to five meters high. A family of five will be comfortable living in it. Faisal and his team decide to make the house simple but beautiful. Since real estate can be expensive, Faisal decides to make the house cost less than USD 400,000. There will be a dock that will be attached to it which can lift boats out of the water and automatically wash them, in order to keep them from rusting. To make it so that it could float in areas close to cities in the Arabian Gulf, the house is designed so that it does not need water any deeper than two meters deep in order to be stable and floating. To help the family to be able to travel back and forth comfortably to their floating home in any type of weather, Faisal offers a special boat that can handle high waves.
Explain which methods of simplicity have been applied in this case study. Mention at least 3 different methods and provide clear reasons for choosing these methods.
In: Mechanical Engineering
MACRS Fixed Annual Expense Percentages by Recovery Class
|
Year |
3-Year |
5-Year |
7-Year |
10-Year |
|
|
1 |
33.33% |
20.00% |
14.29% |
10.00% |
|
|
2 |
44.45% |
32.00% |
24.49% |
18.00% |
|
|
3 |
14.81% |
19.20% |
17.49% |
14.40% |
|
|
4 |
7.41% |
11.52% |
12.49% |
11.52% |
|
|
5 |
11.52% |
8.93% |
9.22% |
||
|
6 |
5.76% |
8.93% |
7.37% |
||
|
7 |
8.93% |
6.55% |
|||
|
8 |
4.45% |
6.55% |
|||
|
9 |
6.55% |
||||
|
10 |
6.55% |
||||
|
11 |
3.28% |
NPV. Mathews Mining Company is looking at a project that has the following forecasted sales: first-year sales are 7,000 units, and sales will grow at 12% over the next four years (a five-year project). The price of the product will start at $126.00 per unit and will increase each year at 66%. The production costs are expected to be 63% of the current year's sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $1,450,000. It will be depreciated using MACRS, and has a seven-year MACRS life classification. Fixed costs will be $55,000 per year. Mathews Mining has a tax rate of 30%. What is the operating cash flow for this project over these five years? Find the NPV of the project for Mathews Mining if the manufacturing equipment can be sold for $80,000 at the end of the five-year project and the cost of capital for this project is 14%.
What is the operating cash flow for this project in year 1? $_______ (Round to the nearest dollar.)
What is the operating cash flow for this project in year 2? $________ (Round to the nearest dollar.)
What is the operating cash flow for this project in year 3? $_________ (Round to the nearest dollar.)
What is the operating cash flow for this project in year 4? $__________ (Round to the nearest dollar.)
What is the operating cash flow for this project in year 5? $__________ (Round to the nearest dollar.)
What is the after-tax cash flow of the project at disposal? $__________ (Round to the nearest dollar.)
What is the NPV of the project? $_________(Round to the nearest dollar.)
In: Finance
MACRS Fixed Annual Expense Percentages by Recovery Class
|
Year |
3-Year |
5-Year |
7-Year |
10-Year |
|
|
1 |
33.33% |
20.00% |
14.29% |
10.00% |
|
|
2 |
44.45% |
32.00% |
24.49% |
18.00% |
|
|
3 |
14.81% |
19.20% |
17.49% |
14.40% |
|
|
4 |
7.41% |
11.52% |
12.49% |
11.52% |
|
|
5 |
11.52% |
8.93% |
9.22% |
||
|
6 |
5.76% |
8.93% |
7.37% |
||
|
7 |
8.93% |
6.55% |
|||
|
8 |
4.45% |
6.55% |
|||
|
9 |
6.55% |
||||
|
10 |
6.55% |
||||
|
11 |
3.28% |
Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,200,000 and will be depreciated using afive-year MACRS life, Projected sales in annual units for the next five years are 300 per year. If the sales price is $ 27,000 per car, variable costs are $18,000 per car, and fixed costs are $1,300,000 annually, what is the annual operating cash flow if the tax rate is 30%? The equipment is sold for salvage for $525,000 at the end of year five. What is the after-tax cash flow of the salvage? Net working capital increases by $550,000 at the beginning of the project (year 0) and is reduced back to its original level in the final year. What is the incremental cash flow of the project? Using a discount rate of 12% for the project, determine whether the project should be accepted or rejected according to the NPV decision model.
First, what is the annual operating cash flow of the project for year 1? $________ (Round to the nearest dollar.)
What is the annual operating cash flow of the project for year 2? $_________ (Round to the nearest dollar.)
What is the annual operating cash flow of the project for year 3? $___________ (Round to the nearest dollar.)
What is the annual operating cash flow of the project for year 4? $________ (Round to the nearest dollar.)
What is the annual operating cash flow of the project for year 5? $_________(Round to the nearest dollar.)
Next, what is the after-tax cash flow of the equipment at disposal? $________(Round to the nearest dollar.)
So, what is the incremental cash flow of the project in year 0? $________(Round to the nearest dollar.)
What is the incremental cash flow of the project in year 1? $__________(Round to the nearest dollar.)
What is the incremental cash flow of the project in year 2? $_________ (Round to the nearest dollar.)
What is the incremental cash flow of the project in year 3? $________ (Round to the nearest dollar.)
What is the incremental cash flow of the project in year 4? $________ (Round to the nearest dollar.)
What is the incremental cash flow of the project in year 5? $________ (Round to the nearest dollar.)
Finally, what is the NPV of the project? $________ (Round to the nearest dollar.)
Should the project be accepted or rejected? (Select the best response.)
A.The project should be accepted because the NPV is greater than zero.
B.The project should be rejected because the NPV is less than zero.
In: Finance
Kale started the year with Cash of $300,000 and ended the year with $250,000. During the year Kale had cash disbursements of $825,000. What is the amount of Kales cash receipts?
Kale ended the year with $200,000 of accounts receivable. During the year Kale collected $300,000 on it accounts receivable and had $350,000 of sales on credit (earned revenue on credit). What was the beginning balance of accounts receivable?
Kale started with $50,000 of accounts payable and ended the year with $22,000 of payables. During the year Kale paid $102,000 on its payables. What is the amount of credit purchases during the year?
In: Accounting
Quoted Prices (% of $1,000 par value)
Year Beginning of the Year End of the Year Average Holding Period Return on High-Grade Corporate Bonds
2010 94.349 100.223 7.30%
2011 100.223 101.319 11.72%
2012 101.319 105.849 -6.89%
2013 105.849 110.776 7.90%
2014 110.776 121.592 9.11%
In early January 2010 , you purchased $27,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 11 5/8% and 2024. You paid 94.349 when you bought the bonds. Over the five years from 2010 through 2014 the bonds were priced in the market as follows: LOADING...
. Coupon payments were made on schedule throughout the 5-year period.
a. Find the annual holding period returns for 2010 through 2014(See Chapter 5 for the HPR formula.)
b. Use the average return information in the given table to evaluate the investment performance of this bond. How do you think it stacks up against the market? Explain.
a. The holding period return for 2010 is %. (Round to two decimal places.)
The holding period return for 2011 is %. (Round to two decimal places.)
The holding period return for 2012 is %. (Round to two decimal places.)
The holding period return for 2013 is %. (Round to two decimal places.)
The holding period return for 2014 is %. (Round to two decimal places.)
b. Use the average return information in the given table to evaluate the investment performance of this bond. How do you think it stacks up against the market? Explain. (Select the best choice below.)
The high-grade corporate bond investment has outperformed the market. The average rate of return for the investment is 16.62 % versus the average market rate of
5.83 %.
The market has outperformed the corporate bond investment. The average rate of return for the investment is 5.83 % versus the average market rate of 16.62 %.
Click to select your answer(s).
In: Finance
#include <stdio.h>
int isLeapYear(int year) {
if (year % 400 == 0 || (year % 100 != 0 &&
year % 4 == 0)) {
return 1;
}
else {
return 0;
}
}
int toJulianLeap(int month, int day) {
month--;
switch (month)
{
case 1: day += 31;
break;
case 2: day += 60;
break;
case 3: day += 91;
break;
case 4: day += 121;
break;
case 5: day += 152;
break;
case 6: day += 182;
break;
case 7: day += 213;
break;
case 8: day += 244;
break;
case 9: day += 274;
break;
case 10: day += 305;
break;
case 11: day += 335;
break;
case 12: day = 366;
break;
}
return day;
}
int toJulianNonLeap(int month, int day) {
month--;
switch (month)
{
case 1: day += 31;
break;
case 2: day += 59;
break;
case 3: day += 90;
break;
case 4: day += 120;
break;
case 5: day += 151;
break;
case 6: day += 181;
break;
case 7: day += 212;
break;
case 8: day += 243;
break;
case 9: day += 273;
break;
case 10: day += 304;
break;
case 11: day += 334;
break;
case 12: day = 365;
break;
}
return day;
}
int toJulian(int month, int day, int year) {
}
int main(void) {
int month, day, year;
while (1)
{
scanf("%d%d%d\n", &month,
&day, &year);
printf("%d%d\n",);
}
return 0;
}
How would i convert the input of month and days to Julian days?
In: Computer Science
Year 1 $50
Year 2-6: 4% more than the previous year
Year 7 to forever: 1% more then the previous year
At 9% APR, what is the present value
infinity
978.24
1027.15
1,078.51
1,132.43
In: Finance
Aritelli Company has provided the following comparative information:
| Year 5 | Year 4 | Year 3 | Year 2 | Year 1 | ||||||
| Net income | $1,035,300 | $892,500 | $750,000 | $641,000 | $543,200 | |||||
| Interest expense | 352,000 | 321,300 | 277,500 | 211,500 | 168,400 | |||||
| Income tax expense | 331,296 | 249,900 | 210,000 | 166,660 | 130,368 | |||||
| Average total assets | 6,901,990 | 6,099,497 | 5,215,736 | 4,440,104 | 3,785,106 | |||||
| Average stockholders' equity | 2,347,619 | 2,109,929 | 1,851,852 | 1,647,815 | 1,448,533 | |||||
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:
| Industry Ratios | ||
| Return on total assets | 19.8 % | |
| Return on stockholders' equity | 40.9 % | |
| Times interest earned | 4.6 | |
Instructions:
Calculate three ratios for Year 1 through Year 5. Round to one decimal place.
a. Return on total assets:
| Year 5 | ? % |
| Year 4 | ? % |
| Year 3 | ? % |
| Year 2 | ? % |
| Year 1 | ? % |
b. Return on stockholders' equity:
| Year 5 | ? % |
| Year 4 | ? % |
| Year 3 | ? % |
| Year 2 | ? % |
| Year 1 | ? % |
c. Times interest earned:
| Year 5 | ? |
| Year 4 | ? |
| Year 3 | ? |
| Year 2 | ? |
| Year 1 | ? |
In: Accounting
Consider the following two projects:
Project Year 0 Cashflow Year 1
Cashflow Year 2 Cashflow Year 3
Cashflow Year 4 Cashflow Discount rate
A -100 40 50 60 N/A .15
B -147 50 70 90 5 .15
An incremental IRR of Project B over Project A is _________%.
(Please round to two decimal places, write the number only without "%". i.e. if the answer is "5%", write "5.00")
In: Finance