BAD company is considering producing a new range of smartphones that will require it to build a
new factory. Feasibility studies have been done on the factory which cost $5 million. The studies
have found the following:
The factory will cost $25 million and will have a useful life of 20 years.
The land where the factory will go is currently used as a carpark for workers and it is assumed that the company will have to pay $200000 per year for their workers to park in a nearby carpark.
The factory will be depreciated on a straight line basis and will have a salvage value of $0 but it is believed that most of it can be sold for scrap after 20 years for $50000.
Due to the nature of the business they are in, they will have to perform some environmental tests to make sure that some of the chemicals they are using are not entering the ground water around the factory. These tests will be performed every 5 years and cost $625000.
Through the building of this factory and the selling of the phones it produces, it’s revenue will increase by $5 million in year 1 and remain at this level for the operational life of the factory.
The extra costs that the company accrues per year due to the project are $435000 for labour, $50000 for overhead like power and water bills and marketing costs for the new line of phones will be $500000 per year but will decrease by $15000 per year as the phone gains greater penetration.
The company’s current cost of capital is 8% per year.
The tax rate is 30%.
The project requires an initial investment in working capital of $1000000 that is returned
in year 20.
Use the above information to answer the following.
Calculate the NPV, IRR and payback period of the project. Should they go ahead with the project?
In: Finance
The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for 500 people, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor will offer.
follows≻For
a small order
(2,000
pieces or less) her vendor quotes a price of
$1.80/piece.
follows≻If
she orders
2,001
to
5,000
pieces, the price drops to
$1.60/piece.
follows > 5,001
to
10,000
pieces brings the price to
$1.40/piece,
and
follows≻ 10,001
and above reduces the price to
$1.25/piece.
Lisa's order costs are
$200
per order, her annual holding costs are
5%,
and the annual demand is
45,700
pieces. For the best option (the best option is the price level that results in an EOQ within the acceptable range):
a) What is the optimum ordering quantity?
nothing
units (round your response to the nearest whole number).
B) What is the annual holding cost? (round your response to two decimal places).
C) What is the annual ordering cost? (round your response to two decimal places).
D) What are the annual cost of the silverware with an optimal order quantity? (round your response to two decimal places).
E) What is the total annual cost, including ordering, holding, and purchasing the silverware? (round your response to two decimal places).
In: Operations Management
1) With static materials, What happens when you bring each charged plastic strip near the paper pieces? Why does this happen?
2)Draw a free body diagram of the forces acting on the piece of paper.
In: Physics
Near the harbour the sea got polluted cause by industrial waste, gives a few examples of prevention for sea pollution cause by industrial waste and elaborate on it, and how can it still happen even though rules and regulation are implemented
In: Civil Engineering
If you were conducting the wire/compass experiment (Part A) near the equator instead of in Oregon, would it be necessary to use more or less wire current to cause the compass needle to deflect? (This is related to the dip angle) Explain why.
In: Physics
A survey of a sample of 26 hotels in New Orleans found that the
average hotel room rate s $88.42 with a standard deviation of $5.62
and another survey of 25 hotels in the Phoenix area found that the
average room rate is $80.61. Assume with a standard deviation of
$4.83. At α = 0.05, can it be concluded that there is a
significant difference in the rates?
Source: USA TODAY.
Make sure to state Ho, H1 and where the claim is
State the value of the test statistic
Calculate the p-value
Make a decision to reject Ho or fail to reject Ho
State your conclusion in words in the context of the claim
You may use your TI 84 but make sure to state the name of the test
you used.
When using calculator and when it comes to choose Yes or No for
pooled, keep it at the default No.
Here is what pooled means: If we assume that population variances
are equal we select YES and if we assume that population variances
are not equal, we select No. By default, use No unless if it is
specified otherwise.
In: Statistics and Probability
Because of staffing decisions, managers of the Gibson-Marimont Hotel are interested in the variability in the number of rooms occupied per day during a particular season of the year. A sample of 24 days of operation shows a sample mean of 299 rooms occupied per day and a sample standard deviation of 32 rooms.
What is the point estimate of the population variance?
Provide a 90% confidence interval estimate of the population
variance (to 1 decimal).
( ___,____ )
Provide a 90% confidence interval estimate of the population standard deviation (to 1 decimal).
(____,_____)
In: Statistics and Probability
It is interesting to determine whether the rates of a hotel in Los Angeles, Atlanta, Houston, and Phoenix are the same or not. Seven hotels are sampled in Los Angeles, five hotels are sampled in Atlanta and Houston, while six hotels are sampled in Phoenix. Data are not reported, only the mean and standard deviation for each city are given for statistical analysis.
|
Los Angeles |
Atlanta |
Houston |
Phoenix |
|
|
Mean |
229.14 |
190 |
195 |
231.33 |
|
Standard Deviation |
19.71 |
6.67 |
4.12 |
17.56 |
A) State the Null and alternative hypothesis you are testing
B) Compute the respective SS and fill in the ANOVA table to summarize the comparison.
C) Based on the F value, what is your conclusion, use a= 0.025. What is the best you can say about the P value based on the F tables.
D) Find the 95% confidence interval’s for the true average of Los Angeles and Atlanta.
In: Statistics and Probability
A hotel in Saint Augustine books an average of 50 rooms per night. There is a standard deviation of 10 rooms per night. What is the probability that...
a) more than 50 rooms are booked on a given night?
b) between 50 and 60 rooms are booked on a given night?
c) 60 rooms or less are booked on a given night?
d) between 30 and 70 rooms are booked on a given night?
e) less than 40 rooms are booked on a given night?
In: Statistics and Probability
Because of staffing decisions, managers of the Gibson-Marimont Hotel are interested in the variability in the number of rooms occupied per day during a particular season of the year. A sample of 29 days of operation shows a sample mean of 300 rooms occupied per day and a sample standard deviation of 35 rooms.
In: Statistics and Probability