16.  Problem 19.17 (Foreign Capital Budgeting)

Sandrine Machinery is a Swiss multinational manufacturing company. Currently, Sandrine's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2,000 and a cash inflow the following year of $2,400. Sandrine estimates that its risk-adjusted cost of capital is 11%. Currently, 1 U.S. dollar will buy 0.85 Swiss franc. In addition, 1-year risk-free securities in the United States are yielding 2%, while similar securities in Switzerland are yielding 1%.

1. If this project was instead undertaken by a similar U.S.-based company with the same risk-adjusted cost of capital, what would be the net present value and rate of return generated by this project? Round the net present value to the nearest cent and rate of return to two decimal places.

   NPV = $  

   Rate of return =   %

2. What is the expected forward exchange rate 1 year from now? Do not round intermediate calculations. Round your answer to two decimal places.

     Swiss franc (SF_r) per U.S. $

3. If Sandrine undertakes the project, what is the net present value and rate of return of the project for Sandrine? Do not round intermediate calculations. Round the net present value to the nearest cent and rate of return to two decimal places.

   NPV =   Swiss francs

   Rate of return =   %

I need recommendations, comments for project proposal of my MBA Capstone project, is it right topic which i chose, description, problem to be addressed?  I begin my graduate capstone project i need just opinion of experts if I am on the right way. This was requirements from my professor:

Week 1: Project Proposal

Describe in 2-3 sentences (a short paragraph) the project proposal that contains the following:

1.Introduction and description of your selected business environment

2.Problem to be Addressed

And this is my answer:

The impact of health issues on the US economy

Introduction And Description Of Your Selected Business Environment
The economy of the United States is mixed and highly developed. It is currently considered the
largest economy in the world in terms of nominal GDP and net worth and is also the second-
largest by purchasing power parity (PPP). The US economy has improved tremendously in the
last ten years, with the unemployment rate shifting to its lowest in 50 years, and this is attributed
to multi-sectoral factors that have an unmeasured and unregulated influence on the economy.
Problem to be addressed
Health care issues such as the current global health pandemic are a great threat to the economy of
the United States, where consumers and businesses have now radically curtailed the operations
and changed their consumption habits leading to the closure of some companies and sacking of
employees.

Sandrine Machinery is a Swiss multinational manufacturing company. Currently, Sandrine's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2,000 and a cash inflow the following year of $2,400. Sandrine estimates that its risk-adjusted cost of capital is 8%. Currently, 1 U.S. dollar will buy 0.85 Swiss franc. In addition, 1-year risk-free securities in the United States are yielding 2.6%, while similar securities in Switzerland are yielding 1.3%.

1. If this project was instead undertaken by a similar U.S.-based company with the same risk-adjusted cost of capital, what would be the net present value and rate of return generated by this project? Round the net present value to the nearest cent and rate of return to two decimal places.

   NPV = ----------$  

   Rate of return = ------------ %

2. What is the expected forward exchange rate 1 year from now? Do not round intermediate calculations. Round your answer to two decimal places.

   ---------- Swiss franc (SF_r) per U.S. $

3. If Sandrine undertakes the project, what is the net present value and rate of return of the project for Sandrine? Do not round intermediate calculations. Round the net present value to the nearest cent and rate of return to two decimal places.

   NPV = ------------Swiss francs

   Rate of return = ------------ %

Assume you are Helena Fogarty, the CEO and founder of Mi Ola, and you are facing a difficult decision about whether or not to outsource manufacturing from the United States to another country. You would like to manufacture only in the United States but competitive pressures are forcing you to consider alternatives. You have a team of advisors with diverse backgrounds whom you trust and with whom you work closely. You would like to maximize the quality of the group’s decision making.

Which of the following is an approach that you might consider using to maximize the effectiveness of the group’s decision making process? Check all that apply.

Use groupthink

Use the nominal group technique

Use the Delphi technique

Use brainstorming

Assume you are Helena Fogarty, the CEO and founder of Mi Ola, and you are engaged in an intense group decision making process with your trusted advisory board. You would like to use evidence-based management to improve your decision making process.

Which of the following things might you do to improve your evidence-based decision making?

Encourage experimentation and learning by doing

Base decisions on previous decisions because if it isn’t broken, the evidence suggests you shouldn’t try to fix it

Encourage people to stick with a decision, even if it seems to be failing, so that you will eventually succeed

Build a culture in which people avoid having unpleasant or difficult conversations

1.  XYZ Company, a manufacturer of computer peripheries, assembles a particular product line at a wholly owned facility in Singapore. The product is designed at XYZ’s headquarters in the United States, but the different components used in the assembly process are manufactured throughout Asia and shipped to Singapore for final assembly. Some of the components are manufactured in multiple locations, so the customer can actually designate where XYZ should source the components. The final product is assembled in Singapore and then shipped via Emery Freight to customers throughout Asia. XYZ Singapore does not buy any components from the United States, but it invoices all of the components purchased from Asian suppliers in U.S. dollars. In addition, it sells the product to Asian customers in U.S. dollars. However, all of its expenses in Singapore are paid in Singapore dollars. Most of the key marketing decisions are made by the U.S. marketing staff, although the Singapore staff acts as a liaison with Emery Freight personnel and deals with the local workers, most of whom come from Sri Lanka on short-term work visas.

     XYZ prefers to translate the results of their Singapore subsidiary into dollars using the current rate method. What is the advantage to XYZ of using the current rate method? As their auditor, what do you think of their decision? If their decision is wrong and they should be using the temporal method, is it possible for them to change?

Chuck Stout is the RM for the Holiday Inn Express. His 220-room property normally sells 85 percent of its rooms on Tuesday nights at an ADR of $141.50. All variable costs related to selling his rooms are $55.00 per room. The DOSM at his Holiday Inn Express is proposing to place a bid to sell 125 rooms for a Tuesday night next month at a rate of $109.00 per room. Chuck believes that if the hotel wins this group rooms bid, the transient room sales for that day will ensure a sell-out at the rate of $141.50.

What would be the total amount of after-variable costs rooms’ revenue the hotel will achieve if it wins the group rooms contract?

What would be the after-variable room’s income if the hotel does not win the contract?

BUS201 - Business Law

Question 6

John Fogarty was staying at the Homelike Hotel and took a bath in the tub provided with his room. When he was ready to get out of the tub, he pulled on a device in the wall of the tub called a “Soap & Grab,” which was designed to be used for the purpose of helping people pull themselves out of the tub. Instead of performing that function, however, the “Soap & Grab” pulled out of the wall and hit John in the face, breaking his nose and giving him severe cuts. John would like to sue the Homelike Hotel for negligence but has no direct evidence of what they did or did not do concerning the “Soap & Grab.” Identify the legal doctrine under which John might establish a duty against the hotel in a negligence lawsuit and explain whether John’s situation meets the requirements of that legal doctrine.

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows: Price ($) Quantity Adults Children 5 15 20 6 14 18 7 13 16 8 12 14 9 11 12 10 10 10 11 9 8 12 8 6 13 7 4 14 6 2 The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits. Calculate the price, quantity, and profit if: The amusement park charges a different price in each market. The amusement park charges the same price in the two markets combined. Explain the difference in the profit realized under the two situations.

Alexandra Marcus, manager of the Sky Club Hotel, has requested your assistance on a queuing issue to improve the guest service at the hotel. Alexandra Marcus is considering how to restructure the front desk to reach an optimal level of staff efficiency and guest service. Observation of arrivals during the peak check-in time of 3:00PM to 5:00PM shows that an average of 80 guests arrive each hour. It takes an average of 3 minutes for the front-desk clerk to register each guest. At present, the hotel has five clerks on duty, each with a separate waiting line.

PLEASE SHOW CALCULATIONS!!

a. Average utilization rate of a server (p)

b. The probability of no. customers in the system (Po)

c. Average number of customers in the system (L)

d. Average time in the system (W)

e. Average waiting in line (Wq)

f. Average number of customers in line waiting Lq

You are given the sample mean and the population standard deviation. Use this information to construct the​ 90% and​ 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. If​ convenient, use technology to construct the confidence intervals. A random sample of 45 home theater systems has a mean price of ​$120.00. Assume the population standard deviation is ​$17.50.