In year 0 of project A, your company is required to make $1M investment but in year 1, 2, 3, 4, 5, and 6 the investment level is only $250K per year. Benefits are forecasted to start in year 3 and continue for the next 20 years varying by each year. Breakeven period is somewhere between year 6 and 7. There is another project alternative (call it project B) that is known but not pursued because the payback period is after year 10 and so the current engineering manager assigned to conduct the economic analysis did not consider this alternative. (a) Should the company invest the time and effort in conducting an analysis for the alternative project? Why or Why not? (b) Create a spreadsheet to show a reasonable analysis for the 20-year period. Use numbers provided and make-up numbers that have not been provided to you as part of this question.
In: Finance
At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:
Cash balance, September 1 (from a summer job) ...................................... $6,000
Purchase season football tickets in September........................................... 150
Additional entertainment for each month................................................... 250
Pay fall semester tuition in September ...................................................... 3,500
Pay rent at the beginning of each month.................................................... 450
Pay for food each month............................................................................. 400
Pay apartment deposit on September 2 (to be returned December 15) ...... 450
Part-time job earnings each month (net of taxes) ...................................... 1,300
the total cash payments for December are $698? TRUE or FALSE
cash balance at end of month for December is? ………
Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
based on this budget which month or months will cash decrease?
In: Accounting
Based on a survey, workers in Ontario earn an average of $60,000 per year with a known standard deviation of $6000. In an attempt to verify this salary level, a random sample of 36 workers in Ontario was selected. Let X represent the mean salary of these 36 workers.
a) Describe the sampling distribution of X.
b) Calculate the probability that X is between 58,500 and 63,000.
c) What is the 90th percentile for X.
In: Statistics and Probability
An investor invests $53,030.00 and receives an annuity of $7,000.00 at the end of each year for 12 years and an additional payment of $15,000.00 at the end of the 13th year. Each time he gets a $7,000.00 payment, he immediately deposits $4,000.00 in a savings account that earns 9%. Find the annual yield received by the investor over the 13 year period.
Please provide a mathematical explanation to the answer if possible. I am more concerned with semantics.
In: Finance
The table below shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year.
| Company | Shares | Beginning of Year Price | Dividend Per Share | End of Year Price | ||||||||
| Johnson Controls | 250 | $ | 74.41 | $ | 1.47 | $ | 86.67 | |||||
| Medtronic | 150 | 59.07 | 0.71 | 55.01 | ||||||||
| Direct TV | 400 | 26.44 | 25.89 | |||||||||
| Qualcomm | 100 | 44.58 | 0.54 | 40.42 | ||||||||
What is your portfolio dollar return and percentage return? (Round your answers to 2 decimal places.)
In: Finance
If a tree flowers thrice in a year (Oct., Jan. and July) in Northern India, it is said to be
(a) photo and thermo-insensitive
(b) photo and thermo-sensitive
(c) photosensitive but thermo-insensitive
(d) thermosensitive but photo-insensitive.
In: Biology
Call options with an exercise price of $125 and one year to expiration are available. The market price of the underlying stock is currently $120, but this market price is expected to either decrease to $110 or increase to $130 in a year's time. Assume the risk-free rate is 6%. What is the value of the option?
In: Finance
Why is it important to project the first-year financial performance on a monthly basis and the subsequent yearly budgets, on a quarterly basis? Explain.
In: Operations Management
In: Finance
) American citizens are getting increasingly into debt. In Biblical times, a jubilee was a year in which debts were forgiven. There have been recent calls to cancel debts for everyone. Why? What would be the economic impact of such a decision? Who would benefit from such a decision and who would suffer?
In: Economics