The WRL Company operates a snack-food center at the Grantley Adams Airport. On January 2, 2003, WRL purchased a special cookie cutting machine, which has been used for 3 years. WRL is considering purchasing a newer, more efficient machine. If purchased, the new machine would be acquired today on January 2, 2006. WRL expects to sell 300,000 cookies in each of the next 4 years. The selling price of each cookie is expected to average $0.50.

WRL has two options: (1) continue to operate the old machine, or (2) sell the old machine and purchase the new machine. The seller of the new machine offered no trade in. The following information has been assembled to help management decide which option is more desirable.

WRL has a 40% income tax rate. Assume that any gain or loss on the sale of machinery is treated as an ordinary tax item and will affect the taxes paid by WRL in the year in which it occurs. WRL has an after tax required rate of return of 16%.

Required:

Use the present value method to determine whether WRL should retain the old machine or acquire the new machine.                                                                      [17 marks]

Assume that the financial differences between the net present value of the two options are so slight that WRL is indifferent between the two proposals. Identify and discuss the non-financial and qualitative factors that WRL should consider. [5 marks]

“Discounted cash-flow techniques are relevant only to profit seeking organizations.” Do you agree? Explain. [ 3 marks]

I NEED HELP WITH THIS QUESTION!

THANKS IN ADVANCE!

(Marketing in Healthcare)

You have just been hired as the Executive Vice President of Sales and Marketing for a national HMO company that until recently was very successful (both revenue and profit growth) selling traditional HMO plans as its only product. During the last two years, revenue and profits declined, and new sales have slowed dramatically. The Board and CEO of the company recruited you to help the company achieve a strategic goal of 15% growth in revenue and profits each year for the next five years.

a.What stage of the product life cycle are HMO products experiencing in

b. Given the answer to (1) above, name three strategies, with specific examples, that you could suggest modifying the HMO’s life cycle for your new company.

c. Given your answer to (1) above, what is the appropriate marketing mix strategy, by each component, for the company to follow with its HMO product?

d. One of the first things the Board and CEO want you to do is to revise the company’s strategic plan. The Board’s directive is to develop strategies to meet the revenue and profit goals. In order to do this you must develop a SWOT analysis. Outline all the factors you will assess in order to develop the proper SWOT.

ABC Electronics wants to hire the optimal number of security guards to prevent thefts from its large superstore. The following table shows how the number of guards will affect the volume of thefts per week.

# guards                  Total Revenue Product                     MRP                             MC

0                                  $0                                            --                                --

1                                  $1600                                       $1600

2                                  $2400

3                                  $3050

4                                  $3560

5                                  $3900

# guards           Total Revenue Product                          MRP                             MC

0                                  $0                                            --                                 --

1                                  $2400

2                                  $3600

3                                  $3975

QUESTION 1

1. 1. If you hire guards from the first company, shown in part a, how many should you hire to maximize profits?

   ENTER ONLY THE NUMBER ANSWER AND NOTHING ELSE

2.5 points   

QUESTION 2

1. 2. If you use the second firm, the premium firm shown in part b, how many guards should you hire to maximize profits?

2.5 points   

QUESTION 3

1. 3. Which is the better option:

   A   hiring the guards from the first firm as you calculated for question 1

   B   hiring the guards from the premier firm as you calculated for question 2

   ENTER ONLY A or B. NOTHING ELSE.

2.5 points   

QUESTION 4

1. Select the answer that best explains the reason you chose the firm you did.  ENTER THE LETTER OF YOUR CHOICE, A B C or D

   A   I picked the one with the greatest Total Revenue Product, because either option will have the same total cost.

   B I picked the option with the greatest Marginal Revenue Product

   C   I picked the option with the lowest total cost

   D   I picked the option that will allow me to hire the most guards

The First National Bank of Wilson has 660 checking account customers. A recent sample of 50 of these customers showed 19 have a Visa card with the bank.


Construct the 99% confidence interval for the proportion of checking account customers who have a Visa card with the bank. (Use z Distribution Table.) (Round your answers to 3 decimal places.)

Confidence interval _______________ and ________________

The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $15, the overhead rate is 1.2 times labor cost, and material cost is $4 per customer.

a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity.(Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.)

b. Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.)

Case Study Eagersaver.com Eagersaver.com was established in 2005 by the CEO Colette Bevan as an online comparison site primarily focused on car insurance and related products. Since then it has grown, both organically and by acquisition of other companies into an organisation that now compares home insurance, legal insurance, pet insurance, travel insurance, life insurance and accident insurance. It has diversified into other comparison services in financial products, travel services and utilities. It has moved offline with the opening of call centre activities and a TV shopping channel. The company’s turnover is £100m. The Managing Director Dirk Bradfield now wishes to float the company on the stock exchange and following a due diligence exercise by Colette’s corporate advisors she has been advised to ‘professionalise the procurement activities throughout the group.’ The due diligence uncovered the following facts: • There are five locations within the UK, situated at Chester, Edinburgh, Sheffield, Bristol and Cardiff. They work independently and only one location has a Purchasing Manager (TV shopping channel). • The largest spend across the group is on marketing (£12m online and £8m TV). • Marketing is centrally managed by the Marketing Director. • Most other procurement is undertaken by service heads including IT and agency staff. • Numerous media companies are engaged often without competition. • The same or similar products and services are procured from different suppliers. • There is a range of prices paid for the same product or service, some ranging by ±30%. • Most contracts are under the vendor’s terms and conditions and in some cases there are verbal arrangements. • The company has outgrown many of its original supplier’s who are finding it difficult to cope with demand and there are instances where contract performance has slipped. • The Chief Executive is responsible for many of these problematic relationships based upon personal friendship at the inception of the company. Tasks You have been appointed into the new position of Group Procurement Director and have a meeting arranged with Colette to discuss the way forward. In considering your plan, how specifically would you deal with?

1. Structuring the procurement activities

2. Rationalising the product and supply chain

3. Managing the Marketing Director who states corporate expenditure is his budget and he will decide who has the last say on contract awards

4. Managing the expenditure attributed to other Service Heads.

In 2005, the Earth's magnetic field was about 10% weaker than it was in 1845 when German mathematician Carl Friedrich Gauss first measured it. If the magnetic field continues to weaken by 10% of its current value every 160 years, approximately when will it be half of its 1845 value? When will it be only 35% of its 1845 value? (Note that we are supposing, in this question, that after 320 years the strength of the field is 90% of 90%—or 81% of its original value.) Round all answers to the nearest year.

The magnetic field will be half of what it was in 1845 about ______years after 1845 or_____________ in the year  .

The magnetic field will be only 35% of its value in 1845 about ___________ years after 1845 ____________ or in the year  .

In 2005, North Inc. acquired an 80% interest in South Co. On the date of acquisition, the book values of South’s asset and liability accounts at that time were considered to be equal to their fair values. No allocations or goodwill resulted from the combination because North’s acquisition value corresponded to the underlying book value of South The following selected account balances were from the individual financial records of these two companies as of December 31, 2019: . North South Sales $ 896,000.00 $ 504,000.00 Cost of Goods Sold 406,000 276,000 Operating Expenses 210,000 147,000 Retained Earnings, 1/1/19 1,036,000 252,000 Inventory 484,000 154,000 Buildings, net 501,000 220,000 Investment income not provided North routinely transfers inventory to South. Of the inventory transferred to South, 30% remained in inventory at the end of 2018 and was sold in the following year. 33.33% of the 2019 intra entity sales remained on hand at the end of 2019 and were sold at the beginning of 2020. More date regarding the intra entity transfers for 2018-2019 are shown below: 2018 2019 North Sales Price to South 130000 165000 North's Cost of Goods Sold to South 104000 132000 Unsold Inventory at end of year 30% 33.33% For the consolidated financial statements for 2018, determine the balances that would appear for the following accounts: a) Cost of Goods Sold; b) Inventory; and c) Net income attributable to the noncontrolling interest.