Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $ 5,300,000. The product is expected to generate profits of $ 1,400,000 per year for ten years. The company will have to provide product support expected to cost $ 95,000 per year in perpetuity. Assume all income and expenses occur at the end of each year.

a. What is the NPV of this investment if the cost of capital is 4.58 %​? Should the firm undertake the​ project? Repeat the analysis for discount rates of 1.21 % and 20.56 %​, respectively.

b. How many IRRs does this investment opportunity​ have? ​ (Hint: Consider the two alternative discount rates we used in our analysis in part​ a.)  

c. Can the IRR rule be used to evaluate this​ investment? Explain.

Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $5,200,000. The product is expected to generate profits of $1,000,000 per year for ten years. The company will have to provide product support expected to cost $99,000 per year in perpetuity. Assume all income and expenses occur at the end of each year.

a. What is the NPV of this investment if the cost of capital is 4.65%​?

Should the firm undertake the​ project? Repeat the analysis for discount rates of 2.95% and 9.73%​, respectively.

b. How many IRRs does this investment opportunity​ have? ​ (Hint: Consider the two alternative discount rates we used in our analysis in part​ a.)  

c. Can the IRR rule be used to evaluate this​ investment? Explain.

Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $ 5,300,000. The product is expected to generate profits of $ 1,400,000 per year for ten years. The company will have to provide product support expected to cost $ 95,000 per year in perpetuity. Assume all income and expenses occur at the end of each year.

a. What is the NPV of this investment if the cost of capital is 4.58 %​? Should the firm undertake the​ project? Repeat the analysis for discount rates of 1.21 % and 20.56 %​, respectively.

b. How many IRRs does this investment opportunity​ have? ​ (Hint: Consider the two alternative discount rates we used in our analysis in part​ a.)  

c. Can the IRR rule be used to evaluate this​ investment? Explain.

1. Vertical Analysis of Income Statement

   Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

   	Current Year		Previous Year
   Sales	$580,000		$522,000
   Cost of goods sold	324,800		261,000
   Selling expenses	104,400		104,400
   Administrative expenses	110,200		93,960
   Income tax expense	17,400		26,100

   a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

   Innovation Quarter Inc.
   Comparative Income Statement
   For the Years Ended December 31
   	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
   Sales	$580,000	%	$522,000	%
   Cost of goods sold	324,800	%	261,000	%
   Gross profit Income from operations Net income Total operating expenses	$	%	$	%
   Selling expenses	104,400	%	104,400	%
   Administrative expenses	110,200	%	93,960	%
   Gross profit Income from operations Net income Total operating expenses	$	%	$	%
   Gross profit Income from operations Net income Total operating expenses		%		%
   Income tax expense	17,400	%	26,100	%
   Gross profit Income from operations Net income Total operating expenses	$	%	$	%

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   b. The vertical analysis indicates that the cost of goods sold as a percent of sales

   • increased
   • decreased
   by 6 percentage points, while selling expenses
   • increased
   • decreased
   by 2 percentage points, and administrative expenses
   • increased
   • decreased
   by 1 percentage points. Thus, net income as a percent of sales
   • increased
   • decreased
   by 3 percentage points.

We live in a fast-changing world. We often hear that innovation is what’s needed to address the global challenges and local issues that we’re facing, to seize new and unexpected opportunities as they arise and to make our world a better place. Therefore, new invention derived from research developments, technical knowledge and tools independent of product and service initiatives. a. Compare disruptive and sustaining technologies. Support your answer with relevant examples. b. Explain how the Internet and WWW caused business disruption. c. Describe Web 1.0 along with ebusiness and its associated advantages. please type it do not handwritten . and not copy from chegg

Week 5 Discussion "Develop an Innovation Framework" Please respond to the following: Develop a simple innovative framework for a business concept of your choice using the five (5) key questions (what, when, where, who, how). Next predict whether or not this strategy will require an incremental change or radical change. Provide support for your response. Discuss three (3) ways that an organization could benefit using the search strategies of Zone 1 (Exploit), Zone 2 (Explore), Zone 3 (Reframing), and Zone 4 (Co-evolution) to explore the best space for their innovative strategy. Provide support for your response.

1.

Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

b. The vertical analysis indicates that the cost of goods sold as a percent of sales __________ by 5 percentage points, while selling expenses ____________ by 2 percentage points, and administrative expenses ___________ by 1 percentage points. Thus, net income as a percent of sales ________ by 2 percentage points.

2.

Vertical Analysis of Balance Sheet

Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follows:

Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place.

2.

Horizontal Analysis of the Income Statement

Income statement data for Winthrop Company for two recent years ended December 31, are as follows:

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.

b. The net income for Winthrop Company increased between years. This increase was the combined result of an ______ in sales and _____ percentage _____ in cost of goods sold. The cost of goods sold increased at a ______ rate than the increase in sales, thus causing the percentage increase in gross profit to be ______ than the percentage increase in sales.

Tony and Jeannie Nelson are married and file a joint return. They have four children whose ages are: 12,15,19 & 23. The three youngest live at home with their parents and qualify as their dependents. The oldest Roger got married on 5/5 2019 and lives with his wife, Jane. The 19-year old Tabitha is studying Fine Arts at Savannah College of Art & Design. During the summer she helps her mother put together the art exhibits. They provide you with the following information regarding their 2019 upcoming tax return:

1) Tony Nelson is an aerospace engineer he runs an engineering firm, Nelson Engineering (NE), as a sole proprietorship since 2010

. a) NE has very lucrative contracts with numerous aerospace companies and during 2019 it earned $702,000.

b) NE rents an office downtown where they meet with clients and conducts business. The rent includes all utilities. NE paid $38,000 in rent expense in 2019. In December 2019 the landlord offered to maintain the same yearly rent cost and Tony could receive an additional month's rent for free if he prepaid his 2020 year rent in advance. Tony agreed and paid an additional $38,000 on December 1, 2019 to cover January 2020 through January 2021 rent.

c) NE obtained a business loan from SunTrust Bank and paid $2,400 in prepaid interest for June 1, 2019 through May 30, 2020.

d) NE has a few employees, including an electrical engineer, a part-time engineering intern and an office manager. The combined wages for these employees is $196,000. Payroll taxes including for these employees is $15,000.

e) Tony took different business clients to see several home Miami Heat games followed by dinners at nearby restaurants where business was discussed. The meals were not considered lavish. The total cost for the Heat tickets and accompanying meals were $1,200 and $800, respectively.

f) In March 2019, Tony flew to a two-day engineering convention held in Phoenix, AZ requiring a two-night hotel stay. While there, Tony noted that the convention dress code was formal when he thought it would be casual. Tony immediately purchased a business suit for $300 (not considered lavish) at a nearby department store. All food costs were covered by the convention organizers. Other trip costs that Tony paid were airplane ticket $400 and hotel lodgings cost $200/night.

g) The depreciation for the year on the fixed assets owned by NE are estimated to total $3,400. Exam 2 – Take Home 2 h) All of NE’s business transactions are properly documented and supported by receipts/invoices. In addition to deductible portion of the items listed above the business will have an additional $4,400 of deductible other expenses.

Read this article and answer questions at the bottom.

The Rise of the Jumbo Student Loan

Most students with loan balances exceeding $50,000 in 2010 had failed to pay down any debtfour years late

During the housing boom of the 2000s, jumbo mortgages with very large balances became a flashpoint for a brewing crisis. Now, researchers are zeroing in on a related crack but in the student debt market: very large student loans with balances exceeding $50,000. A study released Friday by the Brookings Institution finds that most borrowers who left school owing at least $50,000 in student loans in 2010 had failed to pay down any of their debt four years later. Instead, their balances had on average risen by 5% as interest accrued on their debt. As of 2014 there were about 5 million borrowers with such large loan balances, out of 40 million Americans total with student debt. Large-balance borrowers represented 17% of student borrowers leaving college or grad school in 2014, up from 2% of all borrowers in 1990 after adjusting for inflation. Large-balance borrowers now owe 58% of the nation’s $1.4 trillion in outstanding student debt. “This is comparable to mortgage lending, where a subset of high-income borrowers hold the majority of outstanding balances,” write Adam Looney of Brookings and Constantine Yannelis of New York University. “A relatively small share of borrowers accounts for the majority of outstanding student-loan dollars, so the outcomes of this small group of individuals has outsized implications for the loan system and for taxpayers,” the authors say. The problem is particularly acute among borrowers from graduate schools, who don’t face the kinds of federal loan limits faced by undergraduate students. Half of today’s big balance borrowers attended graduate school. The other half went to college only or are parents who helped pay for their children’s education. Grad school borrowers tend to be among the best at paying off student debt because they typically earn more than those with lesser degrees. But the rising balances unearthed in the latest study suggest that pattern might be changing. Overall across the U.S., one-third of borrowers who left grad school in 2009 hadn’t paid down any of their debt after five years, compared to just over half of undergraduate students who hadn’t, federal data show. Mr. Yannelis and Mr. Looney, a former Treasury Department official under President Barack Obama, built the research out of exclusive access to federal student-loan and tax data. The findings on graduate schools are particularly noteworthy because the government offers little information on the loan performance of grad students, who account for about 14% of students at universities but nearly 40% of the $1.4 trillion in outstanding student debt. The data set accompanying the new study breaks down performance for students at 934 schools with 100 or more graduate borrowers whose loans first came due in 2009. At Nova Southeastern University , a large private nonprofit school in South Florida, just over half of the 10,319 graduate borrowers who departed in 2009 had reduced their balances by just a dollar or more five years later, the data show. Many sought or received advanced degrees in health fields. They collectively borrowed $412 million for grad school, or an average $40,000, excluding any debt from other schools, the study showed. George Hanbury, Nova Southeastern’s president, said many of the school’s former grad students went into health fields, where salaries often start low and then rise quickly later on. “They all have the capability to see higher incomes the longer they stay in their career, which means they have the greater capability to increase their rate of payback than they do in the earlier stage,” Mr. Hanbury said. He said the school’s former students earn more, on average, than workers with bachelor’s degrees. At Arizona State, a large public university in Tempe, 51% of the 4,000 grad students who left in 2009 had reduced their initial balances by 2014. Arizona State, through a spokesman, declined to comment. At Walden University, a large collection of graduate programs run by Wall Street giant Laureate Education Inc., 53% of 9,530 graduate borrowers paid down their balances by at least a dollar or more over five years. Many were enrolled in programs involving social services. Walden, in a statement emailed by a spokeswoman, said many former graduate students are in fields that often pay modestly at first but serve a social good. “This is consistent with our social mission where we are educating in professions like teaching, social work, and counseling, for example, and those professionals may not earn significant salaries right after graduation, but who are making a significant societal impact,” the statement said. Most borrowers from those schools aren’t in default. Instead, a big share of them are in debtrelief plans that lower monthly payments, known as income-driven repayment, or they’ve won permission from the government to postpone payments due to a range of circumstances, including unemployment or further study.

Questions

Read the following article and complete a summary of minimum 125 words.

Summary

• Identify major claims and supporting details
• Use the author’s name + reporting verbs are used often
• Paraphrase only
• Avoid personal opinion

Supply of nurses falls in Canada for first time in almost 20 years: report

KELLY GRANTHEALTH REPORTER

HEALTH REPORTER

PUBLISHED JUNE 23, 2015UPDATED MAY 15, 2018

The supply of nurses in Canada has declined for the first time in almost 20 years, according to a new report that has prompted two prominent national nursing organizations to warn that the country needs to do a better job of managing the health-care work force.

The latest snapshot of the nursing field from the Canadian Institute for Health Information (CIHI) found that more nurses left the profession than entered it in 2014 – a 0.3-per-cent decrease from the previous year in the number of people holding active nursing licences across the country.

The supply of registered nurses – by far the most common nursing category – fell 1 per cent.

At the same time, the number of nurses actually working in the field continued to climb last year, up 2.2 per cent from 2013, in keeping with the stable growth of the past 10 years.

"The sum of all the numbers is a tightening nursing labour market," Karima Velji, president of the Canadian Nurses Association (CNA), said in a statement. "Immediate action is needed to stave off the potentially long-lasting trend of a shrinking [registered nurse] work force and its consequences for population health."

The CNA is a professional organization that advocates for nurse-friendly public policy.

Andrea Porter-Chapman, CIHI's manager of health work force information, said it is too early to say whether the dip in supply marks the start of a nursing shortage in Canada or a one-year blip thanks to a regulatory change in Ontario. Either way, health policy-makers will need to watch the trends closely over the next couple of years, she said.

"This is the first shift in almost two decades where we've seen a decline in the supply," Ms. Porter-Chapman said. "But the positive side of this is that our work force continues to increase. ... I think [the supply issue] is something that our health-care system just needs to be aware of and monitor."

When it comes to nursing in Canada, the term "supply" refers to the number of people holding active licences with the provincial bodies that regulate the profession.

But not all licensed nurses work in nursing. Some hold on to their licences after landing other jobs, going back to school or unofficially retiring.

Last year, the College of Nurses of Ontario, the self-regulating body that oversees the profession in Canada's most populous province, put in place a new rule that effectively bars members from renewing their licences unless they have practised nursing in the province in the past three years. That contribued to an unusually high number of nurses formally exiting the profession in Ontario – 15,836 in one year.

Still, the CIHI report identified some underlying trends that suggest there is more at play.

Across the country, a total of 27,757 nurses let their licences lapse last year, while only 25,397 registered anew with one of the provincial or territorial regulators – a net loss of 2,360.

The supply of nurses dropped in six jurisdictions: Newfoundland and Labrador (down 0.7 per cent), Prince Edward Island (down 3.5 per cent), New Brunswick (down 0.9 per cent), Ontario (down 2.6 per cent), British Columbia (down 0.9 per cent) and the Northwest Territories and Nunavut, which together saw a decrease of 3.2 per cent.

Canada's nursing schools are simply not graduating as many students. "We've seen the growth in the number of [nursing] graduates slow down, so it's just under 1 per cent now," Ms. Porter-Chapman said. "This is after five years where the growth was between 6 and 12 per cent."

As well, the number of students admitted to entry-level nursing programs actually fell between 2009-2010 and 2010-2011, the most recent year for which CIHI was able to obtain national figures.

"Will the workplace feel it yet? Perhaps not. It might take a year or two to see these changes trickle into work settings," said Linda McGillis Hall, a professor in the faculty of nursing at the University of Toronto. "I think this report will actually bring this issue to the forefront again."

The Canadian Federation of Nurses Unions (CFNU), an umbrella organization that represents almost 200,000 nurses and nursing students from eight provincial unions, said the decline in supply may already be leading to increased overtime and absenteeism.

The CFNU's latest report found that nurses across the country worked more than 19 million hours of overtime in 2014, 20 per cent of it unpaid. Absenteeism was up too.

"The decrease in the nursing supply combined with an aging work force and fewer students admitted to [entry-level nursing] programs is a sign that our health-care work force is in transition," CFNU president Linda Silas said in an e-mailed statement. "To ensure patient safety and a sustainable health-care system, we need a national health human resources plan."