A firm is considering several policy changes to increase sales. It will increase the variety of goods it keeps in inventory, but this will increase inventory by $11,500. It will offer more liberal sales terms, but this will result in average receivables increasing by $68,000. These actions are expected to increase sales by $815,000 per year, and cost of goods will remain at 70% of sales. Because of the firm’s increased purchases for its own production needs, average payables will increase by $36,500. What effect will these changes have on the firm’s cash cycle? (Use 365 days in a year. Do not round your intermediate calculations. Round your answer to 2 decimal places.)
In: Finance
McGilla Golf would like to know the sensitivity of NPV to changes in the price of the new clubs and the quantity of new clubs sold. The clubs will sell for $845 per set and have a variable cost of $405 per set. The company has spent $150,000 for a marketing study that determined the company will sell 60,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 10,000 sets of its high-priced clubs. The high-priced clubs sell at $1,175 and have variable costs of $620. The company will also increase sales of its cheap clubs by 12,000 sets. The cheap clubs sell for $435 and have variable costs of $200 per set. The fixed costs each year will be $9,750,000. The company has also spent $1,000,000 on research and development for the new clubs. The plant and equipment required will cost $37,100,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,700,000 that will be returned at the end of the project. The tax rate is 25 percent, and the cost of capital is 10 percent. McGilla Golf would like to know the sensitivity of NPV to changes in the price of the new clubs and the quantity of new clubs sold. What is the sensitivity of the NPV to each of these variables?
In: Finance
Buffer capacity is a measure of a buffer solution's resistance to changes in pH as strong acid or base is added. Suppose that you have 175 mL of a buffer that is 0.140 M in both formic acid (HCOOH) and its conjugate base (HCOO-). Calculate the maximum volume of 0.460 M HCl that can be added to the buffer before its buffering capacity is lost.
In: Chemistry
In: Finance
Write about the changes in GWP in the last ten years and the reasons behind it.
In: Economics
Newton's law of cooling states that the temperature of an object
changes at a rate proportional to the difference between its
temperature and that of its surroundings. Suppose that the
temperature of a cup of coffee obeys Newton's law of cooling. If
the coffee has a temperature of 205 degrees Fahrenheit when freshly
poured, and 1 minutes later has cooled to 190 degrees in a room at
64 degrees, determine when the coffee reaches a temperature of 150
degrees.
The coffee will reach a temperature of 150 degrees in how many
minutes?
In: Advanced Math
When is duration appropriate for estimating the bond’s sensitivity to changes in interest rates.
In: Finance
In: Physics
Describe some of the biggest changes to the US healthcare system made as a result of the passage and implementation of the Affordable Care Act. In your response, address the areas of coverage expansion(s), market reforms, etc. that seek to improve access to care while reducing costs. Based on your understanding of the initiatives you detail, discuss whether or not you believe these policy initiatives to be successful in South Carolina or not while justifying your reasoning.
In: Nursing
How do changes in the fed funds rate impact inflation and unemployment?
In: Economics