KFA is considering investing in a new drone technology costing $12 million. It has a 5 year life (no salvage value) and will save KFA $3.5 million/year in pre-tax operating costs. It will need an up-front working capital investment of $300,000. KFA's cost of capital is 8.0% and its tax rate is 21.0%. Their current technology has a $5 million book value but a $1 million salvage value. What are the NPV and IRR of the decision to replace the old technology?

Consider a closed economy (an autarky). The equilibrium price of computers in this autarky is equal to $1,000. Suppose that the world price of computers is equal to $800.

2. Show the consumer surplus, producer surplus, equilibrium price and quantity traded for the closed economy in part-a in the market for computers.

3. Now suppose this closed economy opens up to international trade. Now show the consumer surplus, producer surplus, equilibrium price and quantity traded. Also make sure to show the exports / imports of the newly opened economy.

4. What happened to consumer surplus, producer surplus, equilibrium price and quantity traded after this economy opened up to international trade?

5. Suppose the policy makers in the newly opened economy are concerned about the welfare of computer producers. Hence, they decide to impose a 30% tariff (a tax on imports) on imported computers. Show the price of computers in the newly opened economy after the tariff is imposed. Show the consumer surplus, producer surplus, equilibrium price and quantity traded after the tariff is imposed. Also make sure to show the government’s tariff revenue.

Assignment Description:

You will be required to conduct analysis of a technology/system application and write a formal paper. The analysis need to be of an application technology used in either (a) a clinical setting for managing health data, patient care, etc or (b) educational setting for improvement of teaching and learning of students, patients, etc. The Technology Application Analysis will be an independent activity for each student to be completed using resources available in your agency, IT department, on the internet, sales materials and/or brochures, and publications.

The Technology Application Analysis project and formal paper will need to address the following aspects:

•Assess an information system or Technology used in a health care setting or educational setting and provide brief description. (For example meet with members of the information system (IS) department and Nursing Informatics department in a clinical facility, simulation lab, or academic setting).

The assessment should include a description of the organization, details about the system used, system users, and an analysis of the information system.

O What system is used

O Description of the Setting and Who will use the technology or system

O Description of the patient/client population to be served

O What are the benefits of the system?

O What are the strengths and weaknesses of the current system?

O What implementation challenges exists for the system

O What kind of training requirement and how easy its usability-include time required, content outline for training and identification of who should conduct the training.

O Who are the individuals involved in the use of this technology/system (nurses, physicians, pharmacists, educators, QA&QC department etc...).

O How would you evaluation of the effectiveness of the technology

O Possible disruption or impact of implementation on usual work of the patient care setting

O How does the application of the technology/system affect quality and safety?

•Synthesize your information with support from literature (at least 5 scholarly references).

•Discuss the development aspects related to standardization, uniqueness, and testing measures

•Utilize concepts of information, organizational, and change theories in the strategies to

analyze, design, implement, and evaluate the project.

•Limit the paper to five-six pages excluding the reference and appendices pages, using APA format. Writing style is at a graduate level

The following information has been extracted from the financial statements of a company. Use it to answer the 4 questions that follow it. When answering the questions (filling in the blanks), DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign in front of first digit for negative numbers. Round to the nearest dollar.

1. What is the Net Cash Flow (NFC) for 2020?

2. What is the Investment in Gross Fixed Assets for 2020?

3. What is the investment in net operating working capital (Investment NOWC) for 2020?

4. What is the Free Cash Flow (FCF) for 2020?

The following information has been extracted from the financial statements of a company. Use it to answer the 4 questions that follow it. When answering the questions (filling in the blanks), DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign in front of first digit for negative numbers. Round to the nearest dollar.

1. What is the Net Cash Flow (NFC) for 2020?

2. What is the Investment in Gross Fixed Assets for 2020?

3. What is the investment in net operating working capital (Investment NOWC) for 2020?

4. What is the Free Cash Flow (FCF) for 2020?

Following data relates to XYZ Company. Based on below data prepare statement of cash flows.
XYZ Co. Ltd.
Balance Sheet
Assets Dec 31, 2009(Rs.) Dec 31, 2010(Rs.)
Cash 135,000 190,000
Marketable Securities 120,000 130,000
A/R & N/R (net) 220,000 250,000
Inventories 300,000 360,000
Investment in stock of subsidiary company 335,000 240,000
Building & Equipment less allowance 800,000 1,040,000
Patents & Goodwill 140,000 36,000
Unamortized bond discount & Issuance cost 30,000 21,600
Total 2,080,000 2,267,600
Liabilities & Equity Dec 31, 2009(Rs.) Dec 31, 2010(Rs.)
Accounts and Notes payable 145,000 180,000
Misc: Accrued liabilities including taxes 65,000 88,200
4% Mortgage Bonds 500,000 400,000
Preferred Stock (Rs. 25par, convertible into two of common) 250,000 240,000
Common Stock (Rs. 10 par) 300,000 432,000
Additional Paid in Capital 200,000 288,000
Retained Earnings 620,000 669,400
Total 2,080,000 2,267,600
In addition to this following information is also available.
1. Stock owned on Mitchell co., a partially owned subsidiary was sold for Rs. 200,000. Stock has original cost
of Rs. 95,000.
2. The entire Goodwill of Rs. 100,000 was written off the books in 2010.
3. The patents have a remaining life of 10 years on Dec 31, 2009 and are being written off over this period.
4. Mortgage bonds mature on July 01, 2010 bonds of Rs. 100,000 were purchased on market at 103½% and
formally cancelled.
5. The decrease in preferred stock outstanding resulted from the exercise of conversion privilege by preferred
stockholders.
6. 10,000 share of common stock were sold during the year at Rs. 18.
7. During the year equipment that cost Rs. 60,000 that had a book value of Rs. 12,000 was sold for Rs.8, 600,
depreciation of Rs 64,000 was taken during the year on building and equipment, balance resulted from
purchase of equipment.
8. The net income for the year transferred to retained earnings was Rs. 99,400.
9. Dividends paid during the year totaled Rs. 50,000
Required:
Prepare Statement of Cash Flows for the year ended December 31, 2010 using indirect method as per the
requirements of IAS-7. Necessary workings must be shown.

An article found that Massachusetts residents spent an average of $860.70 on the lottery in 2010, more than three times the U.S. average (www.businessweek.com, March 14, 2012). A researcher at a Boston think tank believes that Massachusetts residents spend less than this amount. He surveys 100 Massachusetts residents and asks them about their annual expenditures on the lottery.

a. Specify the competing hypotheses to test the researcher’s claim.

• H₀: μ = 860.70; H_A: μ ≠ 860.70

• H₀: μ ≥ 860.70; H_A: μ < 860.70

• H₀: μ ≤ 860.70; H_A: μ > 860.70

b-1. Calculate the value of the test statistic. (Negative value should be indicated by a minus sign. Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)

b-2. Find the p-value.

• p-value < 0.01

• 0.01 ≤ p-value < 0.025

• 0.025 ≤ p-value < 0.05

• 0.05 ≤ p-value < 0.10

• p-value ≥ 0.10

c. At α = 0.10, what is the conclusion?

• Reject H₀; there is insufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

• Reject H₀; there is sufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

• Do not reject H₀; there is sufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

• Do not reject H₀; there is insufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

Balance Sheet

Assets: 12/31/19

Current Assets:

Cash $3,000.00

Accounts Receivable 1,250.00

Prepaid Expenses $100.00

Total Current Assets $4,350.00

Non-Current Assets:

Property, Plant, and Equipment

Land $10,000.00

Buildings 25,000.00

Equipment 15,000.00

Accumulated Depreciation $(12,000.00)

Total Property, Plant, and Equipment $38,000.00

Total Assets $42,350.00

Liabilities:

Current Liabilities

Accounts Payable $100.00

Accrued Expense 150.00

Salary and Wages Payable -

Notes Payable -

Unearned Revenue $1,500.00

Total Liabilities $1,750.00

Shareholder's Equity

Common Stock - $1 par (See Note Below) $15,000.00

Retained Earnings $25,600.00

Total Equity $40,600.00

Total Liabilities and Equity $42,350.00

Transactions during January 2020:

1. On January 2, 2020, ACC executed a 3 month- 6% promissory note for $10,000.00 in favor of its

bank, Cheatem Trust Company, Inc. for working capital purposes.

7. Depreciation expense for the month of January was $1,000.00

8. January service revenue for the Company is $21,000.00. All revenues are recorded as "on account."

9. ACC reviewed its work product for January and determined that it had performed $500.00 of the

services required that were being accounted for as unearned revenue in addition to revenues

described in transaction 8.

10. ACC recorded interest expense associated with the Note Payable described in transaction 1.

NOTE: Other events possibly having an effect on the company:

At the end of January, the Board of Directors voted to shut down and liquidate a component of the

company's operations. This represents a strategic shift in their operations. The component experienced

a 2,100 loss during January. This was partially offset by a $1,200 gain on the disposition of the assets.

Both of these transactions are net of tax and have already been appropriately reflected in the

Retained Earnings balance shown on the December 31, 2019 Balance Sheet.

Note 14 of ACC's financial statements for the year ended 12/31/19 indicates the company's

effective tax rate to be 25%.

The company's common stock account includes 100,000 shares authorized, 1,000 shares issued

and outstanding.

Required:

On separate sheets of paper, please:

Prepare the appropriate journal entries associated with the above transactions. It is not necessary to

prepare journal entries associated with the discontinued component.

Prepare a "T" account depiction of the Company's General Ledger activity for the

month of January 2020.

Prepare ACC's Income Statement for the month ending January 31, 2020

Prepare ACC's Balance Sheet at January 31, 2020.

1. Fill in the blanks and give reasons:

A. Fill in the generic strategy row above. (5 points)

The answer the following questions:

B. How different are the two firms’ financials? Explain each ratio. (5 points)

C. How are they related to their strategies? (5 points)

2. A. How would you interpret a current ratio of 0.8? (2 points)

B. Is it good or bad for the firm? (2 points)

C. What information you would need to extra to interpret it? (1 points)

3. Use this information for New Tech Company to answer the following question. You may (or may not) need to fill in missing information.

          NEW TECH COMPANY

INDUSTRY AVERAGE RATIOS

Which of the following items characterize New Tech Company? (It may be more than one option).

EXPLAIN (and report your calculations) (15 points)

1. High debt & unprofitable
2. Low debt & unprofitable
3. Decreasing profit margin
4. High Asset Utilization Performance
5. Low Asset Utilization Performance
6. Increasing sales with a decreasing sales growth rate
7. 1, 3 and 5 characterize New Tech Company

4. Using CAPSIM Practice Round Courier Reports for the Rounds :

A. Identify your closest competitor at the end of Round 3 ( Hint: identify a company with products & pricing (5 points)

B. Identify industry revenue (growth) averages, PM growth, and CM growth for the 3^rd Practice Rounds (10 points) for all the players in this industry

C. Create & growth and common-size “Selected Financial Statistics” Statements for from 2^nd Round to 3^rd Round (15 points)

D.

I.Write down the steps of strategic financial analysis ( 3 points)

II. Compare and contrast the performance of your firm vs. industry & the closest competitor. (12 points)

E. Which company performed the best? Which company performed the worst? for the end of the 3^rd Practice Round (10 points)