Booyah is a publicly traded company that sells both computer hardware and services. It has no debt outstanding or cash. In the most recent year, the company reported the following information about its two businesses:

Business              Revenues (in $ millions)               Enterprise Value/Sales Unlevered Beta

Computer hardware       $800                                                               0.7 1.22

Computer services          $500                                                               1.9 0.7

The company also provides the breakdown of revenues geographically:

A) Estimate the cost of equity in US dollars for Booyah

B) Now assume that Booyah wants to sell just its hardware business in the United States at fair value (based on the EV/Sales ratio for the sector) in the United States, borrow an additional $280 million in the US and invest the total amount in computer services in China. Estimate the cost of equity in US $ for Booyah after the transaction.

Frightened by the recession and the credit crisis that produced it, the nation’s mainstream economists are embracing public spending to repair the damage — even those who have long resisted a significant government role in a market system.

But there is not much agreement yet on what type of spending would produce the best results, or what mix of spending and tax cuts.

“We have spent so many years thinking that discretionary fiscal policy was a bad idea, that we have not figured out the right things to do to cure a recession that is scaring all of us,” said Alan J. Auerbach, an economist at the University of California, Berkeley, referring to the mix of public spending and tax cuts known as fiscal policy.

Hundreds of economists who gathered here for the annual meeting of the American Economic Association seemed to acknowledge that a profound shift had occurred

At their last annual meeting, ideas about using public spending as a way to get out of a recession or about government taking a role to enhance a market system were relegated to progressives. The mainstream was skeptical or downright hostile to such suggestions. This time, virtually everyone voiced their support, returning to a way of thinking that had gone out of fashion in the 1970s.

“The new enthusiasm for fiscal stimulus, and particularly government spending, represents a huge evolution in mainstream thinking,” said Janet Yellen, president of the Federal Reserve Bank of San Francisco. She added that the shift was likely to last for as long as the profession is dominated by men and women living through this downturn.

The few sessions that dealt with fiscal policy were packed with economists, mostly from academia. Nearly all argued that public spending can be more effective than tax cuts in getting out of a bad recession. Still, they said the present crisis required, as a tonic, a mix of the two, and they debated what that mix should be, just as President-elect Obama’s transition team is now doing.

Their proposals were all over the lot. But at the formal sessions and in more than a dozen interviews, many said that once the recession ended, the nation should not go back to the system that held sway from Ronald Reagan’s election in 1980 to the present crisis. It was one in which taxes, regulation and public spending were minimized.

For Peter Gottschalk, a labor economist at Boston College, who earned his Ph.D. in 1973, the transition has not been easy. Keynesian economics, with its emphasis on a government role in the marketplace, was losing its grip when he started his career. Indeed, the present upheaval has been outside the theoretical boundaries of mainstream economics as practiced for a generation by most of the nation’s economists.

“Our models are built on the assumption that on average people behave rationally and they do the right thing,” Mr. Gottschalk said, “but this time people did very much the wrong thing. It’s like thinking you have a disease under control and then being hit with a new strain of it.”

Since the 1970s, the Federal Reserve has dealt with recessions by lowering interest rates, thus reviving demand by making it less expensive to borrow and to spend. But this time, the credit system is broken, and those who can borrow at relatively low rates are reluctant to spend. That shifts the burden of lifting the economy to fiscal policy, namely the $600 billion to $800 billion mix of tax cuts and spending that the Obama administration and Congress are likely to agree on early this year.

Nearly every economist who spoke here agreed that a dollar invested in, say, a new transit system or in bridge repair is spent and respent more efficiently than a dollar that comes to a household in a tax cut. A bigger percentage of the latter is saved, they said. There was concern, however, that the nation lacked enough “shovel ready” projects that could be ramped up quickly, generating jobs.

What is more, the economists did not agree on the best projects to pursue. As Mr. Auerbach pointed out, after a generation of ignoring public spending in their research, the nation’s mainstream economists lacked the expertise to help guide the process. “We have not figured out the right course of action,” he said.

There were plenty of proposals at the three-day convention. Some argued for a big investment in broadband. Others proposed recruiting young people for two-year stints weather-stripping and upgrading privately owned and public buildings. Still others argued that government should step up subsidies for basic research and product innovation

And Daniel J. B. Mitchell, a professor emeritus at the University of California, Los Angeles, proposed that Washington channel money to cities with the proviso that they purchase municipal buses from General Motors, which makes them, or yellow school buses. The Ford Motor Company manufactures the school bus chassis.

“That is a better fiscal stimulus than to bail out the auto companies,” Mr. Mitchell said.

No one illustrated the conversion to fiscal stimulus more vividly than Martin Feldstein, a Harvard economist and a well-known conservative who served for a time as a top economic adviser to President Reagan. In a paper, Mr. Feldstein noted that the usual method of reviving the economy — lower interest rates — was failing to work because of “a dysfunctional credit market.”

That left fiscal stimulus to offset what he described as a decline of $400 billion a year in consumer spending. “While good tax policy can contribute to ending the recession, the heavy lifting will have to be done by increased government spending,” Mr. Feldstein said.

He pushed for big spending, carried out quickly. Among his proposals: replace depleted military supplies and equipment and step up financing for “useful research.” He also said that the shortage of “shovel ready” projects should not be a deterrent in a recession that is likely to last long enough to plan and execute new projects.

“It is of course possible that the planned surge in government spending will fail,” Mr. Feldstein said. But he expressed the “hope that the new program of fiscal spending in combination with mortgage market reforms will be sufficient to return the economy to full employment.”

I need answers for Questions 2-4 please:

Read the article: Economists Warm to Government Spending but Debate Its Form (see above.) and then answer the questions below.

Question 1 Explain what is meant by the multiplier principle

Question 2 Explain the reasons why there has been a shift in the thinking of many leading economists about the merits of fiscal policy.

Question 3 Using aggregate supply and demand diagrams, examine the factors that determine the size of the multiplier effect following an increase in government spending.

Question 4 Assess whether an increase in government spending and taxation by equivalent amounts will leave national income unchanged?

Required:

a.      a.      Explain in plain English how Costco recognizes revenue from annual memberships.

         b.      Does Costco recognize revenue in consistence with the revenue recognition principle in GAAP? Explain your answer.

Karen has to make rental payments of $1000 at the start of every month, throughout the four-year duration of her university course. Her university fees are $4000 to be paid at the start of each year. She earns $1500 per month (paid at the end of each month) from a part- time job. Assume an interest rate of 8% p.a. and that she keeps the part-time job for the next four years. How much money, in present value terms, can she withdraw each month for the next four years? I have seen different answers from multiple people (eg: 146.13 and 157.83), and am not sure which is right or if none of them are right. Please help me. Thank you :)

1) You are responsible for selecting automobiles that will be used in your company’s fleet and have been asked to determine the energy consumption of the described vehicles for each of the driving processes described below. The vehicles have the following combined wind drag and rolling friction force during average operation conditions. The relationship for this force is Ff = (0.214m + 5.63) where, m=vehicle mass and Ff is the combined wind and rolling friction forces in N. Note the numerical parameter have units associated with them.

One automobile is an all-wheel drive hybrid vehicle with a mass of 1450 Kg and it is powered by a storage battery- motor combination that provides electricity to four wheel mounted motors/generators. It does not have plug in capabilities at this time. The batteries in the hybrid configuration are charged using an internal combustion engine-electrical generator combination at the end of the driving cycle or by regenerative braking. The battery in this problem has sufficient energy storage to accomplish the given driving cycle and it is used to keep account of the energy used in each driving process. For the purpose of this problem the battery is initially fully charged. Determine the change in the chemical energy of the battery for each described process for the hybrid vehicle. The efficiency of the battery charging process is 90% when it is charged from the engine. The efficiency of the regenerative braking mechanism is 85% and is defined as the energy provided to the battery divided by the braking energy needed to reduce the speed of the automobile. The battery charging process is included in the regenerative braking efficiency. The battery discharge efficiency is 90%. The battery efficiencies are defined as the energy provided by the battery divided by the change in the chemical energy of the battery during the discharge and the reciprocal of this parameter for the charging phase. The hybrid regeneration braking system can operate down to a velocity of 10 Km/hr when the standard friction brakes are applied. All processes can be considered to be isothermal. The efficiency of the engine-generator system is 34% for the hybrid vehicle. The second automobile has a mass of 1200 Kg, has the same all wheel motor drive configuration and is powered by a conventional internal combustion engine with a generator that has an efficiency of 31%. This efficiency is for the engine-generator combination. In this configuration there is no regenerative braking mechanism and no battery.The different driving cycles are composed of the following individual processes.

a) The vehicle accelerates from a stop to a speed of 50 km/hr at constant elevation. This acceleration takes place over a distance of 75 m. This applies to both the hybrid and nonhybrid vehicle.

b) The vehicle stops from a velocity of 50 km/hr at a constant deceleration rate. During regenerative braking the distanced traveled is 67 m and during frictional braking the distanced traveled is 15 m. This process is also at constant elevation. For the nonhybrid vehicle the braking distance is 78 m.

c) A hill climb with an elevation change of 150 m at an angle of 12 degrees and a constant velocity of 50 km/hr. The drag work should be included in this calculation.

d) Calculate the power from the power device, either the battery or the internal combustion engine vehicle, required during the hill climb described in part (c).

e) A hill descent with an elevation change of 150 m at an angle of 1 degrees and a constant velocity of 50 km/hr. The drag work should be included in this calculation.

f) Energy consumed per km during a level driving distance.

2.1) Determine the chemical energy change in the battery (in the hybrid vehicle) or fuel consumed (nonhybrid vehicle) and the thermal energy (heat) added to the environment (heat flow) for a), b), c), e) and f) of the above driving processes.

2.2) Using the above results and the given information, consider two driving cycles that your company uses. The first is composed of 51 start and stops, 5 hill climbs and descents and a level, constant velocity component of 21 km. The second driving cycle is composed of one start stop, one hill climb and descent and 310 km of level, constant velocity driving. The first driving cycle is used twice as often as the second.

2.3) Based on your calculations, write a recommendation for purchasing the type of vehicles. The company plans to purchase four vehicles. The heating value of gasoline is 32.0 MJ/L. The cost of gasoline is $1.75/liter. The recommendation is to the Chief Financial Officer of the company who has an MBA and a public relations background. To do this problem it will help if you draw your system and identifying the energy property changes and the energy interactions at the boundaries. In some cases, you may need a sub system analysis to identify the energy interaction, especially the heat flows associated with the inefficiencies of the system. Also, there is no external energy input until the end of the driving cycle for the hybrid vehicle, all the driving processes are supplied by the battery. For the nonhybrid vehicle, there is an external energy input from the fuel supplied to the engine for driving process. It will also help if you view this problem as a simulation analysis of fuel consumed by each type of vehicle over each driving cycle. The problem has been sub divided into individual processes that make up the driving cycle.

Prof. Business wants a 22-year retirement annuity that begins 9 years from today with an equal annual payment equal to $115,000 today inflated at 2.5% annually over 9 years. Her first retirement annuity payment would occur 9 years from today. She realizes her purchasing power will decrease over time during retirement.

Prof. Business currently has $660,000 in her University retirement account. She expects these savings and any future deposits into her University and any other retirement account will earn 8% compounded annually. Also, she expects to earn 7% annual return after she retires.

Prof. Business now wants to consider retiring two years earlier in 7 years and will deposit her required University contributions each year as in question 4 and will deposit and additional $14,400 at the end of each year for the next 7 years (first deposit totals $35,400). Also, she will require a 24-year retirement annuity.

Answer from #4:

Questions:

a) How much money will Prof. Business have in her retirement account immediately after her last deposit 7 years from today?

b) What would be the equal annual payment from her 24-year retirement annuity whose first payment occurs exactly 7 years from today?

Please show work and functions on an excel spreadsheet.

Read through the Tree Trimming Project case. This case refers to the earned value (EV) of the owner, Will Fence’s Tree Trimming business. Will briefly describes his techniques for EV. Based on the description provided in the case, is Will using EV? Answer the corresponding question provided at the end of the case (300-500 words). Use references from the reading materials to support your response.

Case is below

Tree Trimming Project Wil Fence is a large timber and Christmas tree farmer who is attending a project management class in the fall, his off season. When the class topic came to earned value, he was perplexed. Isn’t he using EV? Each summer Wil hires crews to shear fields of Christmas trees for the coming Holiday season. Shearing entails having a worker use a large machete to shear the branches of the tree into a nice, cone shaped tree. Will describes his business as follows: A. I count the number of Douglas Fir Christmas trees in the field (24,000). B. Next, I agree on a contract lump sum for shearing with a crew boss for the whole field ($30,000). C. When partial payment for work completed arrives (5 days later), I count or estimate the actual number sheared (6,000 trees). I take the actual as a percent of the total to be sheared, multiply the percent complete by total contract amount for the partial payment [(6,000/$30,000 5 25%), (.25 3 $30,000 5 $7500)]. Answer the corresponding question provided below with (300-500 words) 1. Is Wil over, on, or below cost and schedule? Is Wil using earned value? 2. How can Wil set up a scheduling variance?

A physician with a practice is currently serving 300 patients. The physician would like to administer a survey to his patients to measure their satisfaction level with his practice. A random sample of 22 patients had an average satisfaction score of 8.3 on a scale of​ 1-10. The sample standard deviation was 1.9. Complete parts a and b below.

a. Construct a​ 99% confidence interval to estimate the average satisfaction score for the​ physician's practice.

The​ 99% confidence interval to estimate the average satisfaction score is________, ___________ ​(Round to two decimal places as​ needed.)

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A university would like to estimate the proportion of fans who purchase concessions at the first basketball game of the season. The basketball facility has a capacity of 3 comma 500 and is routinely sold out. It was discovered that a total of 210 fans out of a random sample of 500 purchased concessions during the game. Construct a​ 95% confidence interval to estimate the proportion of fans who purchased concessions during the game. The​ 95% confidence interval to estimate the proportion of fans who purchased concessions during the game is ___,____.

owa has decided to run a quasi-experiment in regard to a new program to increase earnings.

29 are randomly assigned to an employment program, and 81 are assigned to a control group. By follow-up interviews, the state finds out how much outside income per week is earned on average, by each individual with the following results:

a. Present a hypothesis and a null hypothesis.  
b. Calculate your t-score (involving the overall standard error for the difference of means); show your work.
c. estimate your p-value (using n1+n2-2 for d.f.);
d. State a conclusion in plain English. Is the result statistically significant? Is it practically significant?