University Car Wash built a deluxe car wash across the street from campus. The new machines cost $255,000 including installation. The company estimates that the equipment will have a residual value of $22,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows:

Problem 7-5A Part 1

Required:

1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
  

2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)
  

3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.)

1. Pick one hypothetical company from the following choices: Auto repair shop, Retail clothing store, Furniture manufacturer, Restaurant, Landscape maintenance, Website design and maintenance. For whichever type of company, you choose, assume you own the building and have a related loan with the bank, and you sell your goods and services to customers on account (they have 60 days to pay).

State which hypothetical company you chose and provide several sentences to describe the company. You have lots of creative freedom here, so it's important to give all of us some information to help us understand what your company looks like. For example, if you choose the restaurant business, give us a description of your hypothetical restaurant (type of food, level of quality, pricing, location, etc.) so we better understand your business.

2. Pick three of the seven risk factors Credit Risk, Market Risk, Political Risk, IT Risk, Operational Risk, Legal Risk, Reputational Risk, and thoroughly describe each of the three possible risk factors for your company. Please provide at least three sentences for each risk factor for your company.

3. For each risk factor you identified, how would you go about limiting this risk?

Imagine that in a given point in time the implied yield to maturity is equal to 3%. Explain what happens to the interest rate paid by the US government bonds and the bond prices in the following scenarios.

i) The US government chooses to increase government spending to finance a new war

ii) Foreigners, in the wake of a new war - start searching for relatively safer assets

iii) A favorable economic outlook suggests that business prospects improve leading to a reduction in the odds of default on corporate bonds

iv) A change in the tax code makes municipal bonds subject to tax at the Federal level.

v) Individual Chinese investors are not longer allowed to allocated their funds in foreign countries

vi) European Union started to issue a new EU-wide bond

What Impact will the new tax bill have on the US Economy? Can you give specific examples of certain businesses and indivivudal tax payers who would benefit?

Please include comments on what you are doing.  

Using linked lists, write a Python program that performs the following tasks:

• store the records for each college found in the input file - colleges.csv - into a linked list. (File includes name and state data fields)
• allow the user to search the linked list for a college’s name; display a message indicating whether or not the college’s name was in the database
• allow the user to enter a state's name and display (to the screen) the total count of colleges in that state

If you use the Node and Linked List class definitions from the zyBook, please make sure you cite this reference in your comments.(dont use if not needed but if you need to use this I will reference them myself)

college.csv file sample

How Aldi's grocery stores adapt its operation in the US and how the company adjusts its operation to suit the US environment?

Objectivism also gives freedom to an individual as one aspect of self-interest. Thus, the answer given by the Objectivist spokesperson is well aligned with the philosophy of self-interest and freedom. Objectivists also believe reason as the basis for any information; a justifying reason as to why a person wants to help the poor would suffice to an Objectivist. Ethics associated with various aspects are devised to keep the balance in society and harmony among different communities and people. As Objectivism focuses mainly on the self-interest of an individual, most of the time, when one individual has to deal with various individuals in the society, one may not get chance to express his/her self-interest. Also, showing individual self-interest may not fit with other's self-interests, and this may create a conflict among individuals and unethical situations. Thus, Objectivism from this perspective looks opposite of ethics. Both the principles propounded by Ayn - 'Self-interest not only in what behavior is but also what it should be' and 'Capitalism through the performance of deeds by individuals who are self-interested.' These principles indicate the possible situation that Objectivism may sometimes lead to unethical conditions while dealing with multiple individuals with different self-interests.

Can an Objectivist discover a selfish reason to aid the poor? And, Can a hermit be ethical, by your standard?

Suppose the US domestic demand for bicycles can be described as the following demand function: Q^D=25000-150P. The supply function of bicycles is assumed to be Q^S=15000+50P.

1. We assume that the bicycle market is competitive. What is the equilibrium price and its equilibrium quantity?

2. Calculate the consumer surplus, producer surplus, and the total surplus.

3. Suppose that due to a trade agreement, the US bicycle market now welcomes foreign bicycles and starts importing bicycles from other countries. The world market is competitive, and its price is at $40, i.e. each imported bicycle will cost a US consumer $40 and the supply of imported bicycles is sufficiently large. The trade agreement impacted the market and it has moved to a new equilibrium. What is the new equilibrium price for the US market?

4. At the new equilibrium, what is the quantity demanded for bicycles now? How many bicycles will domestic producers produce? And how many bicycles are from imports?

5. What is the total surplus in this market now? Compare your answer to the total surplus calculated in part 2. What is the net gain in social welfare?

6. Has the U.S. as a whole benefited by opening up trade to the rest of the world? If it has not, explain why. If it has, does it imply that EVERYONE wins in this event? Who might have losses?

University presidents around the country have convinced the Congress to support an educational program that will allow students to attend any college in the US they want for only $15,000 in annual tuition and living expenses. This program would generate $40,000 in extra after-tax earnings. The rest of society – i.e., taxpayers, pays costs of $24,000 in scholarship costs per student but receives only $10,000 in discounted added tax revenues.

1. Would this program pass the Hicks-Kaldor economic efficiency test?

2. Is this the right test to use?

3. Regardless of the answers to (a) and (b), is this a program that you would support? Why yes or no?

5. Suppose health status ("healthy" or "unhealthy") represents asymmetric information: Each individual knows her or his health status, but insurance companies do not.  

Now, suppose an insurance company offers only two types of policies: 1) a full-coverage policy with premium equal to the most expensive (regardless of insurance type) of the two full-coverage policies.

a. In the boxes below, calculate expected utility for a "healthy" individual, for each scenario:

No Insurance:

Most Expensive Full-Coverage Policy (Option 1):

Least Expensive Deductible Policy (Option 2):

b. In the boxes below, calculate expected utility for an "unhealthy" individual, for each scenario:

No Insurance:

Most Expensive Full-Coverage Policy (Option 1):

Least Expensive Deductible Policy (Option 2):

c. Based on your answers in 5a. and 5b., which option would a representative member of each group (i.e. "healthy" and "unhealthy") choose?

d. In the box below, enter the insurance company's expected economic profit from selling the desired policy (from the individual's perspective) to a member of each group.

Expected Profit from "Healthy":

Expected Profit from "Unhealthy":