Please note that this assignment consists of two separate parts. The first part gives the cash flows for two mutually exclusive projects and is not related to the second part. The second part is a capital budgeting scenario.

Part 1

Please calculate the payback period, IRR, MIRR, NPV, and PI for the following two mutually exclusive projects. The required rate of return is 15% and the target payback is 4 years. Explain which project is preferable under each of the four capital budgeting methods mentioned above:

Table 1

Cash flows for two mutually exclusive projects

Part 2

Please study the following capital budgeting project and then provide explanations for the questions outlined below:

You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago for $2.1 million in anticipation of using it as a toxic waste dump site but has recently hired another company to handle all toxic materials. Based on a recent appraisal, the company believes it could sell the land for $2.3 million on an after-tax basis. In four years, the land could be sold for $2.4 million after taxes. The company also hired a marketing firm to analyze the zither market, at a cost of $125,000. An excerpt of the marketing report is as follows:

The zither industry will have a rapid expansion in the next four years. With the brand name recognition that PUTZ brings to bear, we feel that the company will be able to sell 3,600, 4,300, 5,200, and 3,900 units each year for the next four years, respectively. Again, capitalizing on the name recognition of PUTZ, we feel that a premium price of $750 can be charged for each zither. Because zithers appear to be a fad, we feel at the end of the four-year period, sales should be discontinued. PUTZ believes that fixed costs for the project will be $415,000 per year, and variable costs are 15 percent of sales. The equipment necessary for production will cost $3.5 million and will be depreciated according to a three-year MACRS schedule. At the end of the project, the equipment can be scrapped for $350,000. Net working capital of $125,000 will be required immediately. PUTZ has a 38% tax rate, and the required rate of return on the project is 13%.

Now please provide detailed explanation for the following:

• Explain how you determine the initial cash flows

• Discuss the notion of sunk costs and identify the sunk cost in this project

• Verify how you determine the annual operating cash flows

• Explain how you determine the terminal cash flows at the end of the project’s life

• Calculate the NPV and IRR of the project and decide if the project is acceptable

• If the company that is implementing this project is a publicly traded company, explain and justify how this project will impact the market price of the company’s stock

Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide references for content when necessary. Provide your work in detail and explain in your own words. Support your statements with peer-reviewed in-text citation(s) and reference(s).

Imagine that we conducted a survey and asked individuals about their education and their smoking habits. The results are below. Are these two variables correlated? If so, what are two potential confounding variables that would explain a statistically significant correlation between education and smoking habits? Explain.

Do you agree or disagree with the selected aspects for an organization? Explain

The three key aspects that a company must consider when developing a successful loyalty and reward program complete satisfaction of the customer needs, give the customer ultimate pleasure in buying the services or products with their loyalty program; in addition, if the consumer spends more genuinely they get more back on their loyalty or reward program, which they will want to focus on the same loyalty program that offers them savings. Customers frown upon any changes to their loyalty program that is not totally benefiting the consumer. “Loyalty program managers are frequently asked to find ways to tighten down budgets within their programs; it is also the case that senior executives do not always have data demonstrating the importance of their program as it contributes to return on investment or ROI. Consequently, programs are often cut or changed in ways that may negatively influence consumers”. Many customers just love their reward program with their vendors; furthermore, it makes the customer spend more with the vendor as well. For instance, I truly love Steven Madden shoes, they have a rewards program that is amazingly great; moreover, you get points for just signing up for the rewards program. All companies are gearing for customers to have a death do us apart relationship with their services or products based on their loyalty program.

     When developing any time of advertising strategy to lure consumers to buy their product or services; consequently, you will have a deal with cost or decrease in the value of the company in order to maintain the loyalty or reward program. For example, “Restaurant chain Chart House program, the Aloha Club, offered free around the world trips to any member who ate in all 65 Chart House restaurants. Unfortunately, the company underestimated the zeal of its 300,000 members. Forty-one members qualified, costing the company a considerable sum of money” (Winer, 2016 pg. 429). Many consumers think they are getting great deals; in addition, at low cost too. Customers and the companies tend to try to get over each other in this marketing structure. “Reward programs are incentives designed to create loyalty among customers with the idea that they can provide the best rewards to the “best” customers. Loyal customers are, by definition, less price-sensitive customers. However, managers frequently question the value of their reward programs and wonder what, if any, incrementality is gained from offering rewards for customer patronage. Consequently, managers are frequently challenged to think of ways to manage their loyalty programs that reward high patronage without creating “deal” seeking customers and without further discounting price”. Consumers only want the deals; consequently, the company wants the long-term shopper, without a return of investments

Martin-Pullin Bicycle Corp. (MPBC), located in Dallas, is a wholesale distributor of bicycles and bicycle parts. Formed in 1981 by cousins Ray Martin and Jim Pullin, the firm’s primary retail outlets are located within a 400 mile radius of the distribution center. These retail outlets receive the order from Martin-Pullin within two days after notifying the distribution center, provided that the stock is available. However, if an order is not fulfilled by the company, no backorder is placed. The retailers arrange to get their shipment from other distributors, and MPBC loses that amount of business.

The company distributes a wide variety of bicycles. The most popular model, and the major source of revenue to the company, is the AirWing. MPBC receives all the models from a single overseas manufacturer, and shipment takes as long as four weeks from the time an order is placed. With the cost of communication, paperwork, and customs clearance included, MPBC estimates that each time an order is placed, it incurs a cost of $65. The purchase price paid by MPBC, per bicycle, is roughly 60% of the suggested retail price for all the bike models available. The inventory carrying cost is 1% per month (12% per year) of the purchase price paid by MPBC. The retail price (paid by the customer) for the AirWing is $170 per bicycle.

MPBC is interested in making an inventory plan for 2011. The firm wants to maintain a 95% service level with its customers to minimize the impact of lost orders. The data collected for the past two years is summarized in the following table. A forecast for AirWing model sales in upcoming year 2011 has been developed and will be used to make an inventory plan for MPBC.

Questions

1. Develop an inventory plan to help MPBC.
2. Discuss ROPs and total costs.
3. How can you address demand that is not at the level of the planning horizon?

The following data give the percentage of women working in five companies in the retail and trade industry. The percentage of management jobs held by women in each company is also shown.

Develop the estimated regression equation by computing the values b ₀ and b ₁.

Enter negative values as negative numbers. Round your answer for the intercept to one decimal place, and your answer for the slope to two decimal places.
= + x

e. Predict the percentage of management jobs held by women in a company that has 60% women employees. Round your answer to a whole percentage.
%

1- Exchange of goods and services?

2- telcommunication company selling talk time through scratch cards? detaild explination at least 5 lines + the example

3- magazine subscription? detaild explination at least 5 lines + the example

4- goods sold under " Sale or Return "? detaild explination at least 5 lines + the example

5- revenue recognition for MEDIA COMPANY when the advertisment are aired even if the payment is not recevied or reveived in advance? detaild explination at least 5 lines + the example

?(c) Construct a relative frequency distribution of the data.

?

?(d) What percentage of the Saturdays had 7 or more customers waiting for a table at? 6:00 P.M.?

(e) What percentage of the Saturdays had 7 or fewer customers waiting for a table at 6:00 P.M.?

Please show your work.