Q1.      What additional concerns might a corporate Chief Financial Officer (CFO) face when a company expands into international markets?

(Ref: BMA, 13/e, Ch 1&12)

Answer:

Q2.      Fajer Inc., a retailer in the home improvement industry, currently operates seven retail outlets in Manama and Dubai. Management is contemplating building an eighth retail store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned warehouse located on it. Last month, the marketing department spent $100,000 on market research to determine the extent of customer demand for the new store. Now Fajer Inc. must decide whether to build and open the new store.

            Which of the following should be included as part of the incremental earnings for the proposed new retail store?

a.   The cost of the land where the store will be located.

b.   The cost of demolishing the abandoned warehouse and clearing the lot.

c.   The loss of sales in the existing retail outlet, if customers who previously drove across town to shop at the existing outlet become customers of the new store instead.

d.   The $100,000 in market research spent to evaluate customer demand.

e.   Construction costs for the new store.

f.    The value of the land if sold.

g.   Interest expense on the debt borrowed to pay the construction costs.

(Ref: BMA, 13/e, Ch 5&6)

Answer:

Q3. Explain the similarities and differences between Net Present Value (NPV), Profitability Index (PI), and Economic Value Added (EVA).

(Ref: BMA, 13/e, Ch 5, 6, &12)

Answer:

Q4.      Which of the following bonds will have the greatest percentage increase in value if all interest rates decrease by 1 percent?

• 10-year zero coupon bond.
• 20-year zero coupon bond.
• 20-year 10 percent coupon bond.
• 20-year 5 percent coupon bond.
• 1-year 10 percent coupon bond.

(Ref: BMA, 13/e, Ch 2)

Answer:

Q5.      The relationship between a bond’s yield to maturity and coupon interest rate can be used to predict its pricing level. For each of the bonds listed below, state whether the price of the bond will be at a premium to par, at par, or at a discount to par.

(Ref: BMA, 13/e, Ch 3)

Answer:

Public / Private partnerships are common in public budgeting. On a large scale, a number of cities across the country have supported the construction of pro sports facilities by dedicating various forms of public tax dollars towards construction. On a smaller scale, it's common for municipalities in Illinois to dedicate future sales tax dollars towards the construction of retail centers. In many cases, these are considered debt to the local government entity. Discuss the pros and cons on public - private partnerships. State whether or not you are in favor of these practices. If you favor them, support your position. If you are against them, provide alternative solutions.

On January 1, 2018, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2019. Construction expenditures for 2018, which were incurred evenly throughout the year, totaled $9,900,000. Marjlee had the following debt obligations which were outstanding during all of 2018:

Required:
Calculate the amount of interest capitalized in 2018 for the building using the specific interest method.

The answer i got was $305,250 (incorrect)

Suppose that the sitting​ back-to-knee length for a group of adults has a normal distribution with a mean of mu equals 23.4 in. and a standard deviation of sigma equals 1.1 in. These data are often used in the design of different​ seats, including aircraft​ seats, train​ seats, theater​ seats, and classroom seats. Instead of using 0.05 for identifying significant​ values, use the criteria that a value x is significantly high if​ P(x or ​greater)less than or equals0.01 and a value is significantly low if​ P(x or ​less)less than or equals0.01. Find the​ back-to-knee lengths separating significant values from those that are not significant. Using these​ criteria, is a​ back-to-knee length of 25.7 in. significantly​ high?

A cliché that sums up the concept of diminishing marginal returns/increasing marginal costs is:

Question 8 options:

You've been hired by Yogurt Yummies to write a C++ console application that calculates and displays the cost of a customer’s yogurt purchase. Use a validation loop to prompt for and get from the user the number of yogurts purchased in the range 1-9. Then use a validation loop to prompt for and get from the user the coupon discount in the range 0-20%. Calculate the following:

        ● Subtotal using a cost of $3.50 per yogurt.

        ● Subtotal after discount

        ● Sale tax using rate of 6%.

        ● Total

Use formatted output manipulators (setw, left/right) to print the following rows:

        ● Yogurts purchased

        ● Yogurt cost ($)

        ● Discount (%)

        ● Subtotal ($)

        ● Subtotal after discount ($)

        ● Tax ($)

        ● Total ($)

And two columns:

        ● A left-justified label (including units)

        ● A right-justified value.

Define constants for the yogurt cost, sales tax rate, and column widths. Format all real numbers to two decimal places. Run the program with invalid and valid inputs. The output should look like this:

Welcome to Yogurt Yummies

-------------------------

Enter the number of yogurts purchased (1-9): 12

Error: '12' is an invalid number of yogurts.

Enter the number of yogurts purchased (1-9): 4

Enter the percentage discount (0-20): 30

Error: '30.00' is an invalid percentage discount.

Enter the percentage discount (0-20): 10

Yogurts:                             4

Yogurt cost ($):                  3.50

Discount (%):                    10.00

Subtotal ($):                    14.00

Total after discount ($):        12.60

Tax ($):                          0.76

Total ($):                       13.36

End of Yogurt Yummies

Siesta Manufacturing has asked you to evaluate a capital investment project. The project will require an initial investment of $88,000. The life of the investment is 7 years with a residual value of $4,000. If the project produces net annual cash inflows of $16,000, what is the accounting rate of return?

In what ways are the Payback Period and Accounting Rate of Return methods of capital budgeting alike?

ABC Company is adding a new product line that will require an investment of $1,500,000. The product line is estimated to generate cash inflows of $300,000 the first year, $250,000 the second year, and $200,000 each year thereafter for ten more years. What is the payback period?

Bonneville Manufacturing is considering an investment that would require an initial net investment of $650,000. The following annual revenues/expenses relate exclusively to the investment: Sales $350,000 -Variable expenses -$40,000 -Salaries expense -$28,000 -Rent expense -$20,000 -Depreciation expense -$40,000 Operating income $222,000 The investment will have a residual value of $50,000 at the end of its 15 year useful life. What is the payback period for this investment?

An annuity is best described as which of the following statements? A stream of interest payments on a principal amount invested, Another term used for future value, A stream of equal cash installments made at equal time intervals

Another term used for present value Concose Park Department is considering a new capital investment. The following information is available on the investment. The cost of the machine will be $330,000. The annual cost savings if the new machine is acquired will be $85,000. The machine will have a 5-year life, at which time the terminal disposal value is expected to be $32,000. Concose Park Department is assuming no tax consequences. If Concose Park Department has a required rate of return of 10%, what is the NPV of the project?

Norwood, Inc. is considering three different independent investment opportunities. The present value of future cash flows for each are as follows: Project A =$600,000, Project B = $550,000 & Project C = $500,000. The initial investment of each project is as follows: Project A =$320,000, Project B = $300,000 & Project C = $230,000. Use the Profitability index to determine what order should Norwood prioritize investment in the projects?

The discount rate that sets the present value of a project’s cash inflows equal to the present value of the project’s investment is called: NPV, ARR, IRR, payback period

Chris Tellson invested in a project with a payback period of 4 years. The project earns $30,000 cash each year for 8 years. Chris’s required minimum rate of return is 8%. How much did Chris initially invest?

The time value of money is considered in the following capital budgeting method(s)? Profitability Index. NPV, All answers given use the time value of $, IRR

Talk about the reasons the hotel company Marriott is expanding into markets globally. Describe the motivation for Marriott being a multinational company and talk about current economic implications such as costs, benefits, etc. for the United States of America and any host countries.

At least 200 words, please. Please complete as soon as possible. Thanks in advance!