5. You are preparing a project to lay fiber optic cable. The first task is to mobilize the team. You estimate this will take one week and cost $4000. The second task is to lay the cable. This will take three weeks and will cost $30,000. The total length of the cable is 15 miles. The last task, which will take one week, is to terminate and test the cable. You budget $6000 for this. At the end of the first week, you have completed mobilization, but it cost a total of $4500. At the end of the third week, you have completed five miles of cable at a total cost of $28,000 (installation only). It takes you a total of 10 weeks to complete the entire project, for a total cost of $75,000.

a. At the end of week 1: i. What is your SPI? ii. What is your CPI? iii. What is your EAC?

b. At the end of week 3: i. What is your SPI? ii. What is your CPI? iii. What is your EAC?

c. At the end of the project: i. What is your SPI? ii. What is your CPI? iii. What is your EAC?

Can someone show me how to do this on Excel?

Thanks

Full Limo Inc. offers high-end transportation services between the King of Prussia Mall (KPM) and Center City Philadelphia (22.5 miles). The invested capital is $800,000, corresponding to the investment in the 4 luxury vans it owns (you can ignore all other invested capital). Each van can carry 10 passengers. Each van makes 12 daily trips from Philadelphia to KPM and 12 from KPM to Philadelphia. The company charges $10 for each one-way ride. The current load factor is 40% (that is, each ride has 4 passengers on average). A significant source of operating costs is the fuel cost. The company vans have a fuel economy of each of 20 mpg (miles/gallon). Current fuel prices are 2.629 $/gallon. The staff costs and other costs of operating the service and running the business are $1M per year. The company operates 365 days a year.

a) Draw an ROIC (return on invested capital) tree for the company.

b) What is the ROIC?

c) Assume that the company can increase the fuel efficiency of the vans to 25mpg. What would be the new ROIC?

You purchased 100 shares in an oil company, Vic Energy Ltd at the price of $50/share.

The company has 1 million shares outstanding. Ten days later Vic Energy announced an investment in an oil field in east Victoria.

The probability that the investment will be successful and generate an NPV of $10 million is 0.2;

The probability that the investment will be a failure and generate a negative NPV of negative $1 million is 0.8.

How would you expect the share price?

You are trying to estimate the enterprise value of Firm X. Since this firm is private, you cannot directly estimate the firm’s cost of equity using its stock data. Fortunately, there is a similar firm, Firm Y, which is in the same industry with comparable operating risk characteristics. Assume that the CAPM holds. The risk-free rate is 2% and the market risk premium is 5%.

QUESTION 1

Firm Y has a debt-to-equity ratio of 3 and it plans to keep this ratio fixed. Firm Y’s equity beta is 6.6 and debt beta is 0.2. What is Firm Y’s unlevered equity beta?

QUESTION 2

What is Firm X’s unlevered equity beta?

QUESTION 3

Assume that Firm X’s cost of debt is 2.5%. What is Firm X’s debt beta?

Green Goose Automation Company currently has no debt in its capital structure, but it is considering using some debt and reducing its outstanding equity. The firm’s unlevered beta is 1.15, and its cost of equity is 12.70%. Because the firm has no debt in its capital structure, its weighted average cost of capital (WACC) also equals 12.70%. The risk-free rate of interest (rRFrRF) is 3.5%, and the market risk premium (RP) is 8%. Green Goose’s marginal tax rate is 30%.

Green Goose is examining how different levels of debt will affect its costs of debt and equity, as well as its WACC. The firm has collected the financial information that follows to analyze its weighted average cost of capital (WACC). Complete the following table.

Kodak Fails to Focus on the Big Picture

The closing case focuses on Kodak and their failure to innovate through the transition from analog to digital technology. It appears Kodak had the resources to innovate and they recognized the coming transition but incorrectly evaluated the needs and desires of the consumer. In addition, members of the company feared change and resisted change efforts. For these reasons, Kodak went from a top 20 Fortune 500 company to bankruptcy in 2012.

Management Update: There are signs Kodak may survive. During bankruptcy, Kodak put Eastman Park up for sale. Eastman Park is a giant industrial complex built in the early 1900s to meet demand for the company’s photographic and film products. In 2015, the company took the park off the market and turned it into a separate company division. With a focus on clean technology, over 60 companies have key operations on the site.

Case Question: Explain how – theoretically, anyway – making “change innovations” in each of the following Areas of Organizational Change might have helped Kodak ease the severity of the conditions that led it to bankruptcy and the challenges facing it now that it’s emerged from bankruptcy:  changing organization structure and design, changing people and attitudes, and changing processes.

Suppose an electric-vehicle manufacturing company estimates that a driver who commutes 50 miles per day in a particular vehicle will require a nightly charge time of around 1 hour and 40 minutes (100 minutes) to recharge the vehicle's battery. Assume that the actual recharging time required is uniformly distributed between 80 and 120 minutes.

Give a mathematical expression for the probability density function of battery recharging time for this scenario.

1.

Following is the R output when fitting regression model of X= miles run per week and Y= weight loss after a year.

Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) 64.28 8.11 7.93 0.015 *
X 1.23 0.63 1.96 0.188
-----------------
Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1

Residual standard error: 6.773 on 2 degrees of freedom
Multiple R-squared: 0.6586, Adjusted R-squared: 0.4879
F-statistic: 3.858 on 1 and 2 DF, p-value: 0.1885

Find the Slope of the regression line.

2.

Following is the R output when fitting regression model of X= miles run per week and Y= weight loss after a year.

Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) 64.28 8.11 7.93 0.015 *
X 1.23 0.63 1.96 0.188
-----------------
Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1

Residual standard error: 6.773 on 2 degrees of freedom
Multiple R-squared: 0.6586, Adjusted R-squared: 0.4879
F-statistic: 3.858 on 1 and 2 DF, p-value: 0.1885

Test the Hypothesis that Slope of the regression line is not zero. Use α=5%

3.

Which test we need to use in order to test hypotheses in multiple regression given below:

Model: Y= β0+ β1X1+ β2X2 +β3X3+β4X4 + ε β0+ β1X1+ β2X2 +β3X3+β4X4 + ε

Hypotheses

H0 : β1=β2=β3=β4=0H1 : βi≠0 for at least one βi  

4.

Which test we need to use in order to test hypotheses in multiple regression given below:

Model: Y= β0+ β1X1+ β2X2 +β3X3+β4X4 + ε β0+ β1X1+ β2X2 +β3X3+β4X4 + ε

Hypotheses:

H0 : β2=0H1 : β2≠0

 Separated by more than​ 3,000 nautical miles and five time​ zones, money and foreign exchange markets in both London and New York are very efficient. The following information has been collected from the respective​ areas: London New York

Spot exchange rate ($/€) 1.3266 1.3266

1-year Treasury bill rate 3.904 % 4.505 %

Expected inflation rate Unknown 1.252 %

--------------------------------------------------------------------------

a. What do the financial markets suggest for inflation in Europe next​ year?

b. Estimate​ today's 1-year forward exchange rate between the dollar and the euro.

Though the electric-gasoline engine allows better miles per gallon relative to a traditional gasoline engine, it is not without technological tradeoffs. Regarding the first electric-gasoline cars to market, much of the mpg achieved was due to styling not the ability to run on electricity, which from market surveys not as appealing as the styling of a sleeker vehicle body design. New and limited infrastructure for servicing these vehicles was created, which may have deterred buyer acceptance.

Question

What fundamental technical constraints are added when incorporating an electric-gas engine into a vehicle design?

Is the inventive concept itself diluted or enhanced by the embodiment required, especially in regards to vehicle styling?

What new business operations are needed to support the new engine design?

What will drive both acceptance and sales of this new type of vehicle?

Compare the technical constraints of the electric-gasoline engine to the conventional gasoline engine.