"The A.M.I. Company is considering installing a new process machine for the firm's manufacturing facility. The machine costs $413,000 installed, will generate additional revenue of $85,000 per year, and will save $64,000 per year in labor and material costs. The machine will be financed by a $192,000 bank loan repayable in three equal annual installments with a 5% interest rate. The machine will be depreciated using seven-year MACRS. The useful life of the machine is 10 years when the machine will be sold for $26,000. The marginal tax rate is 40%. Compute the IRR of the investment. Enter your answer as a percentage between 0 and 100."
In: Finance
A small auto parts store has a single counter with one employee. Customers arrive at the counter at the rate of 10 per hour according to a Poisson distribution. The employee can handle 20 customers per hour and service times are exponentially distributed. Calculate
(A) The probability that a customer finds an empty counter in the auto parts store (no customers waiting or being served) (B) The average number of customers waiting in the que at the auto parts store (i.e., waiting, not yet being served)
(C) The average total number of customers in the auto parts store system (i.e., waiting plus being served)
(D) The average total time that customers spend in the auto parts store system (i.e., waiting and being served)
(E) The average time it takes for customers to wait in line at the auto parts store system (before being served)
(F) If there are three other auto parts stores in town, is one employee adequate for this store?
In: Statistics and Probability
Consider a study to relate birthweight (y) to the estriol level(x) of pregnant women. The data is below with 32 observations.
|
i |
Estriol(mg/24hr) |
Weight(g/100) |
i |
Estriol(mg/24hr) |
Weight(g/100) |
|
1 |
7 |
25 |
17 |
17 |
32 |
|
2 |
9 |
25 |
18 |
25 |
32 |
|
3 |
9 |
25 |
19 |
27 |
34 |
|
4 |
12 |
27 |
20 |
15 |
34 |
|
5 |
14 |
27 |
21 |
15 |
34 |
|
6 |
16 |
27 |
22 |
15 |
35 |
|
7 |
16 |
24 |
23 |
16 |
35 |
|
8 |
14 |
30 |
24 |
19 |
34 |
|
9 |
16 |
30 |
25 |
18 |
35 |
|
10 |
17 |
31 |
26 |
17 |
36 |
|
11 |
19 |
30 |
27 |
18 |
37 |
|
12 |
21 |
31 |
28 |
20 |
38 |
|
13 |
24 |
30 |
29 |
22 |
40 |
|
14 |
15 |
28 |
30 |
25 |
39 |
|
15 |
15 |
32 |
31 |
24 |
43 |
|
16 |
16 |
32 |
32 |
27 |
35 |
PLEASE SHOW ALL YOUR WORK:
level 0.05? :
In: Statistics and Probability
It is customary to think about investments as falling into one of three groups: revenue-enhancing, cost-reducing, and mandatory describe what each of these categories mean and give an example.
In: Finance
1. The Washington Post article explains that LinkedIn earns revenue mainly in three ways. Which of the following is NOT one of them?
| a. |
A suite of products from its Talent Solutions Division. |
|
| b. |
Sales of advertising |
|
| c. |
"Premium access" memberships |
|
| d. |
Fees charged to users for setting-up their profiles |
2. LinkedIn helps people find jobs in the following ways:
| a. |
Makes it easier to make and leverage connections in your network |
|
| b. |
Posts job listings without relevant information that may or may not help you get a job |
|
| c. |
Helps you create a network by starting with your friends which in the end can bring benefits such as job referrals, discussions on various topics, and much more |
|
| d. |
About half of LinkedIn’s users are from outside of the United States which can help those interested in working internationally |
|
| e. |
a, c, and d but not b. |
In: Economics
In: Economics
Current Year1 Year 2 Year 3
Revenue $1,500 $1,650 $1,815 $2,000
EAT $95 $106 $117 $130
The company also receives a royalty net after taxes of $10 million per year. It is expected that the cash flows equal to depreciation will have to be reinvested to keep the firm operating. Further, capital expenditures equal to 60 per cent of the net cash flow will need to be invested to keep the firm growing. Other items on the balance sheet remain unchanged. The CFO believes that it will just forecast for the first three years and then simply assume a 6 percent annual growth rate after the third year.
T-bills yield 8 percent and the market return is 13 percent. The company’s beta using Hamada equation is 1.2. What is the value of the company or what would you pay for the firm if you were interested in it.
In: Finance
How does the Fall of Man relate to tragedies like 9/11 and disasters such as the Tsunami of 2004? Explain how your reaction to evil events has caused you to reassess your worldview.
In: Psychology
Meadows Laboratories holds a valuable patent for a “gazak”. The history of costs
associated with the “gazak” are as follows.
Date Activity Cost
2000 – 2001 Research conducted to develop “gazak” $117,000
Mar. 2002 Design and construction of a prototype 81,500
Oct. 2002 Testing simulations 36,750
Feb. 2003 Redesigning based on simulation results 41,250
Apr. 2004 Legal fees paid for patent granted May, 2004 69,955
May. 2008 Legal fees paid to successfully defend patent 23,205
Jan. 2010 Research aimed at modifying the “gazak” design 17,500
Oct. 2013 Legal fees paid to successfully defend patent 11,240
Meadows assumed a useful life of 17 years for the patent in May, 2004. On January
1, 2012, it revised its useful life estimate downward to 6 remaining years.
Amortization is computed for a full year if the cost is incurred prior to July 1, and no
amortization for the year if the cost is incurred after June 30. The company’s year
ends December 31.
Instructions – Compute the carrying value of the “gazak” on each of the following dates:
In: Accounting
Assume a variable cost of $10 per table and an average spending of $60 per table.With the daily deal ($60 for $30 coupon), Groupon provides Mr. Chang with a revenue of $17 pertable. The analysis provided in the New York Timesblog indicated that Mr. Chang makes money($7 per table) through the daily deal (rather than incurring advertising expense).
Question 3:After some negotiations Mr. Chang receives the following alternative offers:1. A Groupon deal with a revenue of $22 per table.2. A Savored deal in which the total revenue when reserving xtables isr(x) = 400 + 17·(x−10).This deal has the condition that at least 10 tables need to be reserved for Savored customers.3. A Savored deal in which the total revenue per table is $18 is the number of reserved tables issmaller than 30 and $25 if the number of reserved tables is at least 30.
In: Economics