Questions
Lakonishok Equipment has an investment opportunity in Europe. The project costs €10 million and is expected...

Lakonishok Equipment has an investment opportunity in Europe. The project costs €10 million and is expected to produce cash flows of €1.0 million in Year 1, €1.4 million in Year 2, and €2.5 million in Year 3. The current spot exchange rate is $1.25/€; and the current risk-free rate in the United States is 1.8 percent, compared to that in Europe of 1.0 percent. The appropriate discount rate for the project is estimated to be 10 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated €8.0 million. What is the NPV of the project?

In: Finance

A   production   company   plans   to   build   a   new   warehouse   in   order   to   supply   its   new &nb

A   production   company   plans   to   build   a   new   warehouse   in   order   to   supply   its   new   sales   points.   On   the   basis   of   a   preliminary   analysis   of   the   problem,   it   has   been   decided   that   the   facility   should   accommodate   at   least   800   pallets   of   80×80   cm2   dimension.   The   pallets   will   be   stored   onto   conventional   racks   and   transported   by   means   of   reach   trucks.   Each   rack   has   four   shelves,   each   of   which   can   store   a   single   pallet.   Each   pallet   occupies   a   1.0×1.0   m2   area.   Racks   are   arranged   as   in   the   figure   provided   in   the   lecture   notes,   where   side   aisles   are   3.0   m  

In: Operations Management

Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm...

Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A through D, with average betas for each division of 0.5, 1.0, 1.2, and 1.5, respectively. Assume all current and future projects will be financed with 60 debt and 40 equity, the current cost of equity (based on an average firm beta of 1.0 and a current risk-free rate of 3 percent) is 15 percent and the after-tax yield on the company’s bonds is 9 percent. What will the WACCs be for each division?

In: Finance

A pendulum of length 2.0 m is raised so that it maeks an angle of 43o...

A pendulum of length 2.0 m is raised so that it maeks an angle of 43o with the vertical. The mass of the pendulum bob is 1.0 kg. It is released with an initial speed of 1.0 m/s and swings downward. At the bottom of its arc, it collides with the bob of a second pendulum of length 2.0 m and mass 3.0 kg which is initially at rest. Assume the collision is elastic.

Calculare the speed with which the first pendulum bob strikes the second.

Determine the speeds of the two masses immediately after the collision.

Determine the heights that each mass will reach after the collision.

In: Physics

In 2019 the per head consumption of chicken meat in country X was 40 kg whereas...

In 2019 the per head consumption of chicken meat in country X was 40 kg whereas the price per kilo was €5. The price elasticity of demand was -1 whereas the price elasticity of supply was 0.5. Given the information provided, and assuming linear demand and supply curves, find: a) The demand and supply curve equations [Mark: 1.0] b) The effect on market equilibrium price and quantity if the government imposes a tax of €0.6 per kg Assume that the producers collect the tax on behalf of the state [Mark: 1.0] c) The effect of the tax imposition on consumer welfare [Mark: 0.5]

In: Economics

Local Co. has sales of $ 10.0 million and cost of sales of $ 6.0 million....

Local Co. has sales of $ 10.0 million and cost of sales of $ 6.0 million. Its​ selling, general and administrative expenses are  $ 500,000 and its research and development is $ 1.0 million. It has annual depreciation charges of $ 1.0 million and a tax rate of 35 %. ​Local's gross margin is 40.00​%, its operating margin is 15.00​%, and its net profit margin is 9.75​%. If Local Co. had interest expense of $ 800,000​, how would that affect each of its​ margins?

​Local's new gross margin is ___%,

new operating margin is ___​%,

and new net profit margin is ___​%.

In: Finance

Develop a simple experiment to test the given microbes in the various salt solutions and include...

Develop a simple experiment to test the given microbes in the various salt solutions and include a method to determine growth. Predict the results of your experiment. You are provided nutrient broth cultures of the following microbes: Escherichia coli, Staphylococcus epidermidis, and Halobacterium salinarium.

The availability of water is defined by a physical parameter called the water activity, Aw. It is determined by measuring the ratio of the water vapor pressure of a solution to the water vapor pressure of pure water. The values for water activity vary between 0 and 1.0, and the closer the value is to 1.0, the more water is available to a cell for metabolic purposes.

In: Biology

1.Pick the statement that BEST describes the LAW OF DIMINISHING MARGINAL UTILITY. A. An additional lane...

1.Pick the statement that BEST describes the LAW OF DIMINISHING MARGINAL UTILITY.

A.

An additional lane of highway will be LESS useful than the previous lane built

B.

An additional lane of highway will be MORE useful than the previous lane built

C.

An additional lane of highway will have a harmful effect on society

D.

An additional lane of highway will always be worth its cost

2.

SUGAR (and other ingredients) in the making of candy bars is

A.

Variable

B.

Fixed

3.

A gasoline station, very near a professional football stadium, parks cars on its lot to make money on game days. Last year it charged $10.00 per car and parked 700 cars. This year it lowered the parking price to $6.00 and parked 1,000 cars. Is the demand for this parking lot INELASTIC or ELASTIC?

A.

Inelastic

B.

Elastic

4.

Last year, a local amusement park sold 10,000 tickets at $40.00 each. This year, it lowered the ticket price to $30.00 and sold 15,000 tickets. Is the demand for this amusement park INELASTIC or ELASTIC?

A.

Inelastic

B.

Elastic

In: Accounting

Traffic jams develop in a city’s centre after police close a road because a man on...


Traffic jams develop in a city’s centre after police close a road because a man on the top floor of a public car park is threatening to jump onto the road. A few hours later a pen drive is delivered anonymously to your doorstep. The pen drive is a copy of dramatic footage from the City Council’s CCTV cameras, showing how police officers approached the man in the car park as he sat on a balcony. The clear footage shows, in close-up, the man weeping as he talked to a policewoman, and how — after she bravely grabbed him as he seemed about to jump — she managed to restrain him until her colleagues rushed to her aid. You know that this rescued man, who has not been named by police, has since been taken to a secure mental hospital. Police say he will not be charged with any offence.
Will you show this footage immediately on your Facebook wall and WhatsApp status? How will your answer be affected by
a) the law concerning Copyright b) the law pertaining to Privacy

In: Economics

At year-end December 31, Chan Company estimates its bad debts as 0.20% of its annual credit...

At year-end December 31, Chan Company estimates its bad debts as 0.20% of its annual credit sales of $603,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $302 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.

Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.

  • Record the estimated bad debts expense.

Note: Enter debits before credits.

Date General Journal Debit Credit
Dec 31
  • Wrote off P. Park's account as uncollectible.

Note: Enter debits before credits.

Date General Journal Debit Credit
Feb 01
  • Reinstated Park's previously written off account.

Note: Enter debits before credits.

Date General Journal Debit Credit
Jun 05
  • Record the cash received on account.

Note: Enter debits before credits.

Date General Journal Debit Credit
Jun 05

In: Accounting