HighTech Industries (HTI) is a worldwide manufacturing company that specializes in high technology products for the aerospace, automotive and plastics industries. The state of the art technology and business innovation have been key to HTI's success over the last ten years. After a meeting of the board of directors, there was some feeling that the company was moving away from its goal of striving to maintain and expand their global position through innovative management teams.
One area of concern was with the company's bonus compensation package. The company's current bonus plan focuses on giving reward based on the utilization of capital within the company, i.e. management of inventory, collection of receivables and use of physical assets. Even with such a state of the art bonus plan, the board of directors are concerned with the short-term focus of the compensation package. HTI's basis in current financial practices suggests that the future period consequences of managerial actions will not be reflected when presenting bonus compensation.
Required:
Help HTI solve the problem of its current bonus compensation package. Explain how this bonus compensation package should be revised, if necessary.
In: Accounting
A fitness course claims that it can improve an individual's physical ability. To test the effect of a physical fitness course on one's physical ability, the number of sit-ups that a person could do in one minute, both before and after the course, was recorded. Ten individuals are randomly selected to participate in the course. The results are displayed in the following table. Can it be concluded, from the data, that participation in the physical fitness course resulted in significant improvement?
Let d=(number of sit-ups that can be done after taking the course)−(number of sit-ups that can be done prior to taking the course)d=(number of sit-ups that can be done after taking the course)−(number of sit-ups that can be done prior to taking the course). Use a significance level of α=0.01 for the test. Assume that the numbers of sit-ups are normally distributed for the population both before and after taking the fitness course.
| Sit-ups before | 21 | 33 | 29 | 30 | 27 | 49 | 30 | 21 | 49 | 41 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sit-ups after | 35 | 40 | 43 | 42 | 34 | 53 | 46 | 36 | 51 | 43 |
Step 1 of 5: State the null and alternative hypotheses for the test.
Step 2 of 5: Find the value of the standard deviation of the paired differences. Round your answer to one decimal place.
Step 3 of 5: Compute the value of the test statistic. Round your answer to three decimal places.
Step 4 of 5: Determine the decision rule for rejecting the null hypothesis H0. Round the numerical portion of your answer to three decimal places.
Step 5 of 5: Make the decision for the hypothesis test.
In: Statistics and Probability
A fitness course claims that it can improve an individual's physical ability. To test the effect of a physical fitness course on one's physical ability, the number of sit-ups that a person could do in one minute, both before and after the course, was recorded. Ten individuals are randomly selected to participate in the course. The results are displayed in the following table. Can it be concluded, from the data, that participation in the physical fitness course resulted in significant improvement?
Let d=(number of sit-ups that can be done after taking the course)−(number of sit-ups that can be done prior to taking the course)d=(number of sit-ups that can be done after taking the course)−(number of sit-ups that can be done prior to taking the course). Use a significance level of α=0.1α=0.1 for the test. Assume that the numbers of sit-ups are normally distributed for the population both before and after taking the fitness course.
| Sit-ups before | 24 | 37 | 34 | 34 | 22 | 26 | 29 | 34 | 25 | 44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sit-ups after | 26 | 49 | 50 | 41 | 33 | 33 | 44 | 48 | 39 | 59 |
Step 1 of 5: State the null and alternative hypotheses for the test.
Step 2 of 5:Find the value of the standard deviation of the paired differences. Round your answer to one decimal place.
Step 3 of 5:Compute the value of the test statistic. Round your answer to three decimal places
Step 4 of 5:Determine the decision rule for rejecting the null hypothesis H 0. Round the numerical portion of your answer to three decimal places.
Step 5 of 5: Make the decision for the hypothesis test. (accept or reject null)
In: Statistics and Probability
In: Accounting
An industrial organization has bought a specialized machine for $240,000 which will save $36,000 each year for 10 years. Straight Line (SL) basis depreciation should be taken into consideration with a depreciable life of 10 years. After tax MARR is 10% per year. Effective income tax rate is 40%. After 10 years, the machine will have zero salvage value. a) Draw a table showing Before Tax Cash Flow (BTCF) and After Tax Cash Flow (ATCF). b) Calculate the after tax PW and IRR. (Use interpolation method to find IRR). Is it feasible?
In: Economics
An industrial organization has bought a specialized machine for $100,000 which will save $24,000 each year for 10 years. Straight Line (SL) basis depreciation should be taken into consideration with a depreciable life of 10 years. After tax MARR is 10% per year. Effective income tax rate is 30%. After 10 years, the machine will have zero salvage value. a) Draw a table showing Before Tax Cash Flow (BTCF) and After Tax Cash Flow (ATCF). b) Calculate the after tax PW and IRR. (Use interpolation method to find IRR). Is it feasible?
In: Economics
An industrial organization has bought a specialized machine for $120,000 which will save $20,000 each year for 10 years. Straight Line (SL) basis depreciation should be taken into consideration with a depreciable life of 10 years. After tax MARR is 10% per year. Effective income tax rate is 40%. After 10 years, the machine will have zero salvage value. a) Draw a table showing Before Tax Cash Flow (BTCF) and After Tax Cash Flow (ATCF). b) Calculate the after tax PW and IRR. (Use interpolation method to find IRR). Is it feasible?
In: Finance
In: Finance
Please assume 2020 tax year:
12. Ms. Lincoln paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider. Compute the after-tax cost of these expenses assuming that
In: Accounting
Coopy Corp. bought equipment for $500,000 on March 1, 2017 down paying $70,000 and signing a note for the rest. Coopy Corp. agreed to make 20 equal quarterly payments for 5 years starting June 1, 2017. The interest rate on this loan is 12%.
a) How much interst payable should be in Coopy Corp's balance on December 31, 2018?
b) What will be the carrying value (CV) on December 1, 2020 after the payment has been made?
In: Accounting