Sanders Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $284,000. The facility is to be fully depreciated on a straight-line basis over seven years. It is expected to have no resale value after the seven years. Operating revenues from the facility are expected to be $119,000, in nominal terms, at the end of the first year. The revenues are expected to increase at the inflation rate of 4 percent. Production costs at the end of the first year will be $44,000, in nominal terms, and they are expected to increase at 5 percent per year. The real discount rate is 7 percent. The corporate tax rate is 40 percent. Calculate the NPV of the project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
In: Finance
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Sanders Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $288,000. The facility is to be fully depreciated on a straight-line basis over seven years. It is expected to have no resale value after the seven years. Operating revenues from the facility are expected to be $123,000, in nominal terms, at the end of the first year. The revenues are expected to increase at the inflation rate of 4 percent. Production costs at the end of the first year will be $48,000, in nominal terms, and they are expected to increase at 5 percent per year. The real discount rate is 7 percent. The corporate tax rate is 40 percent. |
| Calculate the NPV of the project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
In: Finance
Sanders Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $288,000. The facility is to be fully depreciated on a straight-line basis over seven years. It is expected to have no resale value after the seven years. Operating revenues from the facility are expected to be $123,000, in nominal terms, at the end of the first year. The revenues are expected to increase at the inflation rate of 4 percent. Production costs at the end of the first year will be $48,000, in nominal terms, and they are expected to increase at 5 percent per year. The real discount rate is 7 percent. The corporate tax rate is 40 percent. Calculate the NPV of the project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) THE ANSWER IS NOT $66,562..52
In: Finance
Identify the central tendency you feel is the most representative of the data and justify your answer. The total mean =54.97 The total median is 55 and the total Mode is 29
| California | 39 | 41 | 49 | 55 | 58 | 59 | 59 | 60 | 69 | 71 | 76 | 77 | 78 | 80 | 81 | 82 | 83 | 88 | 89 | 93 | 69.35 | 73.5 | 59 | |
| Conneticut | 20 | 20 | 29 | 39 | 40 | 50 | 53 | 56 | 56 | 58 | 59 | 60 | 60 | 62 | 66 | 69 | 70 | 71 | 77 | 81 | 54.8 | 58.5 | 20 | |
| Delaware | 10 | 22 | 30 | 35 | 35 | 40 | 41 | 42 | 42 | 55 | 62 | 63 | 68 | 68 | 68 | 70 | 70 | 77 | 88 | 89 | 53.75 | 58.5 | 68 | |
| New York | 20 | 29 | 29 | 30 | 33 | 39 | 49 | 51 | 52 | 55 | 55 | 55 | 59 | 65 | 68 | 70 | 78 | 84 | 88 | 88 | 54.85 | 55 | 55 | |
| North Carolina | 22 | 27 | 27 | 29 | 29 | 29 | 37 | 40 | 43 | 44 | 46 | 48 | 48 | 48 | 50 | 50 | 52 | 54 | 58 | 61 | 42.1 | 45 | 29 |
In: Statistics and Probability
Suppose you buy 100 shares of stock initially selling for $50, borrowing 25% of the necessary funds from your broker; that is, t he initial margin on your purchase is 25%. You pay an interest rate of 8% on margin loans. a. How much of your own money do you invest? How much do you borrow from your broker? b. What will be your rate of return for the following stock prices at the end of a one-year holding period?
(i) $40,
(ii) $50,
(iii) $60.
In: Accounting
The marketing team at an internet music site wants a better understanding of who their customers are. They send out a survey to 25 customers (and use an incentive of $50 worth of downloads to guarantee a high response rate) asking for demographic information. One of the variables is the customer's age. For the 25 customers, the ages are shown to the below. Complete parts a) through d).
19 , 30 , 39 , 26 , 36 , 32 , 31 , 22 , 23 , 43 , 35 , 13 , 44 , 31 , 44 , 29 , 28 , 47 , 36, 44 , 31 , 12 , 27 , 33 , 47
a)Find the quartiles Q1 & Q2
b)Find the quartiles Q1 & Q2 using the Tukey method.
c)Find the IQR using the quartiles from part b.
d)Find the standard deviation.
In: Statistics and Probability
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IRR AND NPV A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
The company's WACC is 9.0%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places. % |
A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:
| 0 | 1 | 2 | 3 | 4 |
| Project X | -$1,000 | $110 | $320 | $430 | $700 |
| Project Y | -$1,000 | $1,100 | $90 | $50 | $55 |
The projects are equally risky, and their WACC is 8%. What is the MIRR of the project that maximizes shareholder value? Round your answer to two decimal places. Do not round your intermediate calculations.
%
In: Finance
For storage options a, b, and c, what volume of storage tank for hydrogen would be needed for a hydrogen fuel cell car to have the same delivered transport energy (that is, total vehicle-km of travel) as a conventional car with a full 50 litre petrol tank (note that the actual volume of the tank is more than 50 litre). a- If the hydrogen is stored as compressed gas at a pressure of 350 bar (1 bar = 101 kPa) b- If the hydrogen is stored cryogenically as a liquid c- If the hydrogen is stored in a metal hydride in solid form Important assumption and information required to answer this question: • The energy content of hydrogen (HHV) is 142 MJ/kg (~40 kWh/kg)The average energy efficiency of the fuel cells used is 44% (based on HHV), and that of the electric motors 86%. • Note that the following gravimetric and volumetric energy storage figures are based on 50% fuel cell energy efficiency, but the energy efficiency that you need to use (based on question 2) in order to answer this question is 44%, HHV. Assumptions for the volumetric and gravimetric electrical energy densities of different hydrogen energy storage options based on 50% electrical energy efficiency (HHV) for the fuel cell: - High-pressure hydrogen at 350 bar: 0.75 kWhe/kg and 0.35 kWhe/litre - Cryogenic hydrogen storage 1.46 kWhe/kg and 0.89 kWhe/litre - Metal hydride 0.5 kWhe/kg and 0.5 kWhe/litre.
In: Mechanical Engineering
hi i don't understand for question b #3 & 4
Having thought about Mr. James’s suggestion, you consider several options as an estimate of lost profits. These include 1) the full year, 2) the last six months only, 3) a weighted average that gives twice the weight to the last six months as to the first six months, or 4) some other weighted average. Which method do you think gives the most accurate estimate of lost profits?
In: Accounting
Question 3.
A. The effectiveness of a blood-pressure drug is being
investigated. An experimenter finds that, on average, the reduction
in systolic blood pressure is 25.1 for a sample of size 810 and
standard deviation 12.5.
Estimate how much the drug will lower a typical patient's systolic
blood pressure (using a 98% confidence level).
Enter your answer as a tri-linear inequality accurate to one
decimal place (because the sample statistics are reported accurate
to one decimal place).
x < μμ < x
B. You must estimate the mean temperature (in degrees Fahrenheit) with the following sample temperatures:
| 42.1 |
| 26.1 |
| 25.1 |
| 31.8 |
| 32.7 |
| 27.7 |
| 26.4 |
| 32.6 |
Find the 80% confidence interval. Enter your answer as an
open-interval (i.e., parentheses)
accurate to two decimal places (because the sample data are
reported accurate to one decimal place).
80% C.I. =
C. In a survey, 26 people were asked how much they spent on
their child's last birthday gift. The results were roughly
bell-shaped with a mean of $40 and standard deviation of $8.
Construct a confidence interval at a 90% confidence level.
Give your answers to one decimal place.
x ±± x
Interpret your confidence interval in the context of this problem.=
write your text here.
In: Statistics and Probability