A city is deciding whether to pay a locally owned construction firm to build a new bridge. The city would finance the construction by borrowing. They would raise local property taxes to collect $20M more per year than they would without the new bridge. (M stands for million.) The extra $20M per year would repay the loan and pay for maintenance and all other costs of operating the bridge during its 50 year lifetime. The government expects that the demand curve for crossings over the bridge will be linear, with a choke price of $8. They plan to charge no toll and expect that there will be 10M crossings over the bridge per year and almost never any traffic congestion. They expect that only city residents will cross the bridge. Assume that the government's expectations are correct. a.[4] Estimate the total consumer surplus that drivers will get by crossing the bridge during a typical year. Show how you get your answer. b.[5] Estimate the average cost of the service provided by the bridge when no toll is charged. Show how you get your answer. c.[5] The local construction firm could have borrowed money and used it to pay its cost of building the bridge. Then it could have operated the bridge and charged a profit-maximizing toll of $4.00 per crossing. There would be 5M crossings of the bridge per year in that case. The firm would have paid $20M per year to maintain the bridge, collect the tolls, and repay the loan. Estimate the firm's annual profit from this project. d.[6] The firm's profit in part c is much bigger than the government's profit if it operates the bridge without charging a toll. Explain why the city residents (including the firm's owner) would benefit much more if the city built and operated the bridge than if the firm operated it as in part c. Why does the firm's higher profit not matter for this conclusion?
In: Accounting
This problem is based on one of the topics, Costs of Quality, in chapter four of your class textbook - Managing Quality: Integrating the Supply Chain, 6th Edition by S. Thomas Foster. An example is solved for you in the text. Study the chapter and solve the following problems.
Statement of the problem
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The Colorado Manufacturing Company of Boulder, CO has gathered the following quality-related costs. You are hired as a consultant to evaluate these costs and to make recommendations to management. |
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Annual Quality Costs |
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Failure Costs Defective Products $ 4,234 Engineered Scrap $ 21,265 Non-engineered Scrap $ 224,123 Consumer Adjustments $ 125,654 Downgrading Products $ 2,125,328 Lost Goodwill Not evaluated Customer Policy Changes Not evaluated Total |
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Appraisal Costs Receiving Inspection $ 24,138 Line 1 Inspection $ 7,256 Line 2 Inspection $ 8,543 Spot Checking $ 2,766 Total |
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Prevention Costs Quality Training $ 25,500 Process Engineering Corporate $ 132,678 Plant $ 44,124 Product Redesign $ 10,422 Total
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In: Accounting
Part of the process for developing a balanced scorecard is to identify one or more measures for each perspective.
Required
Categorise each of the following potential balanced scorecard measures according to the following perspectives:
F Financial
C Customer
I Internal business process
L Learning and growth
(a) Percentage of customer orders delivered on time
(b) Ratio of research and development cost to number of new products developed
(c) Economic value added (EVA)
(d) Number of hours of employee training
(e) Direct labour price variance
(f) Market share
(g) Percentage of customer orders delivered without error
(h) Days in accounts receivables
(i) Throughput time
(j) Direct materials efficiency variance
(k) Asset turnover
(l) Employee retention rate
(m) Percentage of bad debts collected
(n) Customer satisfaction ratings
(o) Number of degrees and certificates held per employee or department
(p) Percentage of purchase orders that are error free
In: Accounting
In: Accounting
A certain store gives its customers a discount on the goods they buy based on a peculiar manner.
The discount percentage is equal to each customer's remainder of weight to age, weight % age.
The maximum discount percentage allowed is 10.
If the remainder is greater than 10, the discount percentage is recomputed as the remainder of 10.
For example, a customer whose weight is 175 lbs and age 61, buys an item costing $60.97. The discount percentage = 175 % 61 = 53. As 53 is greater than 10, the discount percentage is recomputed as 53 % 10 = 3 percent.
Therefore, the discount amount is 0.03(60.97) = $1.83.
Write a class file called lastname_discount.java. Write methods to compute and return the discount percentage, the discount amount for each customer and the sum of all the discount amounts.
Write a demo file called lastname_discount_demo.java. Add two integer arrays containing the weight and age of customers and a double array containing the cost of goods (any number of customers greater than 10). Write an object to pass the three arrays into the class file and print the information returned by the three methods specified in the previous paragraph.
Extend the story line as you like (any reasonable) by clearly defining what it is. Add a fourth method (type your creation as a comment above the fourth method). Print the results of this fourth method below the first three outputs.
In: Computer Science
1. Weighted average cost of capital Suppose Enviro-tech is attempting to estimate its cost of capital (WACC). The company has 1,500,000 shares of stock outstanding that currently sells for $50 per share. In addition, the company has 25,000 bonds outstanding with 10 years left until maturity that pay a $1,000 par value and an annual coupon of 5.0%. Management believes these bonds would sell for 1,010.50 in today’s market. The company’s beta is 1.1, the risk-free rate is 2% and the market risk premium is 8%. The tax rate is 25%.
a. What is the total market value of the company's stock (MVE)
b. What is the total market value of the company's bonds (MVD)?
c. What is the total market value of the firm's financial contacts (total invested capital)?
d. Estimate the percentage of the company financed with debt (wd
e. Estimate the percentage of the company financed with equity (ws)
f. Estimate the firm's cost of debt (rd)
g. Estimate the firm's cost of equity (rs) using the CAPM.
h. Compute an estimate of the firm's weighted average cost of capital (WACC)
In: Finance
Environmental Cost Report Verde Company reported operating costs of $27,000,000 as of December 31, 2015, with the following environmental costs: Testing for contamination $ 405,000 Inspecting products 378,000 Treating toxic waste 1,053,000 Obtaining ISO 14001 certification 756,000 Designing processes 378,000 Cleaning up oil spills 1,836,000 Maintaining pollution equipment 297,000 Cleaning up contaminated soil 3,429,000 Required: Hide 1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79". Verde Company Environmental Cost Report For the Year Ended December 31, 2015 Environmental Cost Total Environmental Cost Percentage of Operating Costs Prevention costs: Obtaining ISO 14001 certification $ Designing processes $ % Detection costs: Testing for contamination $ Inspecting products % Internal failure costs: Treating toxic waste $ Maintaining pollution equipment % External failure costs: Cleaning up oil spills $ Cleaning up contaminated soil % Total quality costs $ %
In: Finance
If the moment generating function is Mx(t) = 1/(1-10t) for t near 0
whats the pdf, mean, and variance with steps please want to understand
In: Statistics and Probability
If I have a positively charged surface and bring it near to a plasma, what would happen? Will both the electrons and protons behave in the same way? (compare their accelerations).
In: Physics
For the following exercises, make tables to show the behavior of the function near the vertical asymptote and reflecting the horizontal asymptote.
f(x) = 1/x -0 2
In: Advanced Math