V. Rahr and Sons is a Fort Worth brewery founded by Fritz Rahr, a Neeley undergraduate and MBA. Currently the company makes Rahr Blonde Lager, Rahr’s Red, and Ugly Pug brews. They are considering a new beer, Frog Princess, with which to celebrate their ties to TCU. The project includes an initial outlay of $750,000 for the purchase of capital equipment that will be depreciated straight line to zero over six years.

Sales are expected to be $400,000 in years 1-3 and $600,000 in years 4-6. Production costs during years 1-6 are as follows: fixed costs (not including depreciation) are expected to be $150,000 per year; variable costs per year will be 40% of sales. The project will require an initial investment in NWC of 200,000 in year 0.

Beyond year six, the company expects that sales and unlevered net income in year seven will be 4% higher than that in year 6, and will continue growing at 4% per year infinitely. Additionally, in year 7 and beyond, new capital expenditures net of depreciation, and increases in NWC, combined, will be 6% of sales. Assume the marginal tax rate is 21%. The appropriate discount rate is 8%.

What is the NPV of the project? What is the IRR? Should the project be undertaken?

V. Rahr and Sons is a Fort Worth brewery founded by Fritz Rahr, a Neeley undergraduate and MBA. Currently the company makes Rahr Blonde Lager, Rahr’s Red, and Ugly Pug brews. They are considering a new beer, Frog Princess, with which to celebrate their ties to TCU. The project includes an initial outlay of $750,000 for the purchase of capital equipment that will be depreciated straight line to zero over six years.

Sales are expected to be $400,000 in years 1-3 and $600,000 in years 4-6. Production costs during years 1-6 are as follows: fixed costs (not including depreciation) are expected to be $150,000 per year; variable costs per year will be 40% of sales. The project will require an initial investment in NWC of 200,000 in year 0.

Beyond year six, the company expects that sales and unlevered net income in year seven will be 4% higher than that in year 6, and will continue growing at 4% per year infinitely. Additionally, in year 7 and beyond, new capital expenditures net of depreciation, and increases in NWC, combined, will be 6% of sales. Assume the marginal tax rate is 21%. The appropriate discount rate is 8%.

What is the NPV of the project? What is the IRR? Should the project be undertaken?

In Australia, when calculating the total tax liability of an individual resident what happens with dividends earned from an investment and franked credits

Example: An individual made $10,000 from dividends and $3,000 of those were franked credits.

Question: using this formula income tax = (taxable income x tax rate) - tax offsets. Would I add the 10,000 to the taxable income and then add the 3,000 franked credits to the tax offsets. If not how and where would I input the numbers into he formula?

The problem of many developing businesses has always been attributed to insufficient or lack of capital to run these enterprises. But on taking an MBA course at the University, you have come to realize that most businesses in Ghana and Africa fail not because of capital adequacy issues but rather, human resources management issues. What significant expectations would you give to all HR managers as needed competences to be equipped with if you are the consultant general to businesses in Ghana? Discuss these factors or requirements in not more than One and half (11 /2) pages.

The problem of many developing businesses has always been attributed to insufficient or lack of capital to run these enterprises. But on taking an MBA course at the University of Ghana Business School, you have come to realize that most businesses in Ghana and Africa fail not because of capital adequacy issues but rather, human resources management issues. What significant expectations would you give to all HR managers as needed competences to be equipped with if you are the consultant general to businesses in Ghana? Discuss these factors or requirements (in not more than One and half pages).

Mary, the plant manager of Southern Oregon Injection Molding, Inc. (SOIM), is pondering an interesting offer made by the president and majority shareholder, Kenny. Kenny recently turned sixty and is planning a gradual retirement. None of his children are interested in taking over the business and are currently pursuing careers unrelated to the plastics industry, so Kenny has decided to offer his controlling share to Mary.

SOIM began by manufacturing plastic lawn ornaments, including a colorful tropical bird that became a major fad in the 1980s. Pleased and amused by the success of his fanciful product, Kenny added rabbits, skunks, trolls, angels, and garden fairies to the product line. Under Mary’s leadership, SOIM has also become an important secondary supplier of plastic housings for speakers, cell phones, calculators, and similar products.

Marry started working at SOIM as a color technician shortly after graduating from Southern Oregon University with a degree in chemical engineering. Within five years, she became the plant manager, a position she has held for the last eight years. Along the way, she has earned an MBA through the evening program at Southern Oregon University.

Because SOIM stock is publicly traded, we can confidently assign a value of $10,000,000 to Kenny’s shares. Kenny has stated that he is open to any reasonable plan to finance the purchase.

Questions

1. Mary could probably borrow the money to purchase the shares outright because the shares would serve as collateral and dividends would cover a good part of the loan payments. The interest rate is 7%, and the lender will amortize the loan with a series of equal payments. What are the annual payments if the bank amortizes the loan over five, ten, or twenty years?

2. Repeat Question 1, but assume that Mary makes payments at the beginning of each year.

What is Nucor Skill? Who is the first to establish it?
How it got famous?
when did it founded and by who? Example?
What is the job looks like? How can someone apply?
Just write 2 page about Nucor Skill.

I need help with this please

Who is the most powerful person you know personally? What is it that makes the person so powerful? Be sure to answer this question in the context of the information presented in the chapter.

Top Notch Homes Ltd. (TNH) is a privately owned company selling a luxury range of home equipment. Fiona Fielding, the daughter of the company’s founder, took over responsibility for running the company in December 2018. She has little management experience. Her main interest is in developing a new business line to broaden the company’s activities. She has no interest in day-to-day internal control activities preferring instead to adopt a more informal management style.
Fiona found a supplier of a new design of hot tub in Norway. She immediately started to import these hot tubs financed by a substantial bank overdraft. The company sells to retailers at £2,000 per unit representing a typical mark-up of 100% on cost. At first sales averaged 50 units per month. Demand was so great that Fiona was forced to engage a second supplier in Finland but at a purchase cost of £1,500 per unit. That supplier required Fiona to sign a three-year contract committing to purchase 400 units per annum.
In the last two months of the accounting period ended 31 December 2019, sales of the hot tubs have fallen significantly and the selling price has had to be reduced by 30%. The hot tubs are sold with a three-year warranty. Some of the units bought from Finland have developed faults which cannot be rectified on site. Customers have insisted that the faulty units be replaced or a complete refund given. Fiona is reluctant to tell the auditors exactly how many units have had to be replaced. At the year-end, inventory consisted of 200 saunas. Fiona is adamant that these should be valued at cost.
Payments due to the suppliers have been delayed because there have been problems reconciling the invoices payable to suppliers with the deliveries received from them. The supplier in Norway is threatening legal action to enforce payment and the supplier in Finland is insisting on cash upfront before any more deliveries are made.

REQUIRED:
1. Identify EIGHT specific factors that should concern the auditors and explain why each factor is of concern?

2. Outline FIVE substantive audit procedures that the auditors of TNH could undertake and explain the purpose of each.