Company XYZ a baby ware makes company servers three regions near Iowa and maintains consignment inventory (owned by ZZY) at each location. Currently. ZZy uses refrigerated TL transportation to deliver separately to each customer. Each truck costs $700 plus $150 per stop. KAR Food is considering aggregating deliveries to Iowa on a single truck. A careful study of the sales regions revealed three large customers, three medium-sized customers, and ten small customers. Demand at the large customer is 60 tons a year, demand at the medium customer is 24 tons per year, and demand at the small customer is 8 tons per year. Product cost for ZZZY Company is $10,000 per ton, and it uses an annual holding cost of 25 percent. Truck capacity is 12 tons.

a. What is the annual transportation and holding cost if ZZY ships a full truckload to each customer when they are running out of stock?

b. What is the optimal delivery policy to each customer if ZZY Company ships separately to each of them? What is the annual transportation and holding cost?

c. What is the optimal delivery policy to each customer if ZZY Company aggregates shipments to each of the three customers on every truck that goes to Iowa? What is the annual transportation and holding cost?

d. Can you come up with a tailored policy that has lower costs than the policies in (b) or (c)? What are the costs and inventories for your suggested policy?

DP Plc is considering whether to purchase a piece of land close to a major city airport. The land
will be used to provide 600 car parking spaces. The cost of the land is K6,000,000 but further
expenditure of K2,000,000 will be required immediately to develop the land to provide access
roads and suitable surfacing for car parking. DP Plc is planning to operate the car park for five
years after which the land will be sold for K10,000,000 at Year 5 prices. A consultant has prepared
a report detailing projected revenues and costs.
Revenues
It is estimated that the car park will operate at 75% capacity during each year of the project. Car
parking charges will depend on the prices being charged by competitors. There is a 40% chance
that the price will be K60 per week, a 25% chance the price will be K50 per week and a 35%
chance the price will be K70 per week.
DP Plc expects that it will earn a contribution to sales ratio of 80%.
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Fixed Operating Costs
DP Plc will lease a number of vehicles to be used to transport passengers to and from the airport. It is expected that the lease costs will be K50,000 per annum.
Staff costs are estimated to be K350,000 per annum.
The company will hire a security system at a cost of K100,000 per annum.
Inflation
All of the values above, other than the amount for the sale of the land at the end of the five year period, have been expressed in terms of current prices. The vehicle leasing costs of K50,000 per annum will apply throughout the five years and is not subject to inflation.
Car parking charges and variable costs are expected to increase at a rate of 5% per annum starting in Year 1.
All fixed operating costs excluding the vehicle leasing costs are expected to increase at a rate of 4% per annum starting in Year 1.
Other Information
The company uses net present value based on the expected values of cash flow when evaluating projects of this type.
DP Ltd has a money cost of capital of 8% per annum.
DP’s Financial Director has provided the following taxation information:
(1) Tax depreciation (Capital allowances) is not available on either the initial cost of the land or the development costs.
(2) Taxation rate: 30% of taxable profits. Half of the tax is payable in the year in which it arises, the balance is payable in the following year.
All cash flows apart from the initial investment of K8,000,000 should be assumed to occur at the end of the year.
Required:
(a) Evaluate the project from a financial perspective. You should use net present value as the basis of your evaluation and show your workings in K’000. [14 Marks]
(b) Calculate the internal rate of return (IRR) of the project. [5 Marks]
The main reason why discounted cash flow methods of investment appraisal are considered theoretically superior is that they take account of the time value of money.
Required:
(c) Explain the THREE elements that determine the ‘time value of money’ and why it is important to take it into consideration when appraising investment projects. [6 Marks]
[TOTAL: 25 MARKS]

AURAK Paper Plant AURAK Paper Factory, located near downtown RAK, has long been delaying the expense of installing air pollution control equipment in its facility. The Environmental Protection Agency (EPA) has recently given the manufacturer 16 weeks to install a complex air filter system. AURAK Paper has been warned that it may be forced to close the facility unless the device is installed in the allotted time. The Plant Manager, wants to make sure that installation of the filtering system progresses smoothly and on time. Given the following information, develop a table showing activity precedence relationships. AURAK Paper has identified the eight activities that need to be performed in order for the project to be completed. When the project begins, two activities can be simultaneously started: building the internal components for the device (activity A) and the modifications necessary for the floor and roof (activity B). The construction of the collection stack (activity C) can begin when the internal components are completed. Pouring the concrete floor and installation of the frame (activity D) can be started as soon as the internal components are completed and the roof and floor have been modified. After the collection stack had been constructed, two activities can begin: building the high-temperature burner (activity E) and installing the pollution control system (activity F). The air pollution device can be installed (activity G) after the concrete floor has been built. Finally, after the control system and pollution device have been installed, the system can be inspected and tested (activity H). Activities and precedence relationships may seem rather confusing when they are presented in this descriptive form. It is therefore convenient to list all the activity information in a table first. You are required to: 1. Draw AON network diagram for AURAK Paper Plant 2. What is the critical path method of this diagram? 3. What is the impact on the sequence of activities if EPA approval is required after Inspect and Test?

Since the end of the Great Recession, interest rates have been at historic lows—in some cases, close to zero. How is expansionary monetary policy, or more specifically a open market purchase, supposed to work? How do near-zero interest rates limit the ability of expansionary monetary policy to work?

Dodd Frank has become an important issue of public debate and there are new developments in the House of Representatives that could result in legislative challenges to Dodd Frank in the near future.

Outline some at least one criticism of Dodd Frank. Try to be as specific as you can. And if you have an opinion on the issue please express it.

38. In the first edition of An Essay on Population, Malthus based his description of the potential growth of the population on data (however tenuous) from ________.

a. New England

b. the region near the University where he taught in England

c. the parts of Africa he visited as an employee of the Royal African Company

d. China

Ethico-Legal Considerations in the Care of Older Adults

1. What is the republic act of senior citizen in the Philippines? Explain in detailed.

2. What are the rights of senior citizen in the Philippines set-up?

3. How can you help the older adult to alleviate depression?

4. What are the signs that death is near?

The city of Seattle sells an average of 30,000 hotel rooms per night. Currently, those rooms have an average tax of $90. The city proposed an additional tax of $10 per room to help finance a stadium. Economists believe that without the tax, the city would average an extra 4000 rooms per night due to the new stadium. But with the tax, the number of rooms sold would fall to 27,000 even with the stadium. Based on these numbers, would it be smarter for the city to charge the proposed tax, or to use tax incremental financing to pay for the stadium?

True or false:

1) If a nation is selling more goods and services to foreigners than it is buying from them, then on net it must be selling assets abroad.

2) It is possible for a country to have domestic investment that exceeds national saving.

3) If a country’s trade surplus falls, its net capital outflow rises.

4) If the exchange rate is 80 yen per dollar, then a hotel room in Tokyo that costs 25,000 yen costs $200.

5) Other things the same, an increase in the nominal exchange rate raises the real exchange rate.