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 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 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 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 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. 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 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 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
In: Economics
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.
Note: Enter debits before credits.
|
Note: Enter debits before credits.
|
Note: Enter debits before credits.
|
Note: Enter debits before credits.
|
In: Accounting