Georgia Movie Company has a capital structure with 50.00% debt and 50.00% equity. The cost of debt for the firm is 9.00%, while the cost of equity is 12.00%. The tax rate facing the firm is 35.00%. The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $2.62 million, and it also expects cash flows from the movie operation to increase by 4.00% each year going forward. The company wants to examine the project over a 11.00-year period.

What is the WACC for this project?

What is the NPV of this project? (express answer in millions, so 1,000,000 would be 1.00)

For each of the following businesses, what are four nonfinancial measures that might be useful for helping management evaluate the success of its strategies?

__ Grocery store

__ Hospital

__   Auto manufacturer

Law office

_   Coffee shop

__   Movie theater

YOUR TASKS

1.       YOU HAVE TO PICK UP ANY ONE BUSINESS FROM ABOVE AND DRAW UP A BALANCE SCORE CARD AS SHOWN BELOW.ANY EFFORT TO COPY FROM OTHER WORK WOULD RESULT IN CHEATING OUR OWN SELVES AND LIMITING GROWTH OF MIND. (5)

2.       YOU HAVE TO MAKE ATLEAST TWO COMMENTS ON BALANCE SCORE CARD MADE BY OTHERS IN THE DISCUSSION TRAIL.DO NOT CRITICISE BUT RATHER SUGGEST WAYS TO IMPROVE. (5)

For each of the following businesses, what are four nonfinancial measures that might be useful for helping management evaluate the success of its strategies?

__ Grocery store

__ Hospital

__   Auto manufacturer

Law office

_   Coffee shop

__   Movie theater

YOUR TASKS

1.       YOU HAVE TO PICK UP ANY ONE BUSINESS FROM ABOVE AND DRAW UP A BALANCE SCORE CARD AS SHOWN BELOW.ANY EFFORT TO COPY FROM OTHER WORK WOULD RESULT IN CHEATING OUR OWN SELVES AND LIMITING GROWTH OF MIND. (5)

2.       YOU HAVE TO MAKE ATLEAST TWO COMMENTS ON BALANCE SCORE CARD MADE BY OTHERS IN THE DISCUSSION TRAIL.DO NOT CRITICISE BUT RATHER SUGGEST WAYS TO IMPROVE. (5)

Problem 8.045 SI

Consider a regenerative vapor power cycle with two feedwater heaters, a closed one and an open one, and reheat. Steam enters the first turbine stage at 12 MPa, 560°C, and expands to 2 MPa. Some steam is extracted at 2 MPa and fed to the closed feedwater heater. The remainder is reheated at 2 MPa to 520°C and then expands through the second-stage turbine to 0.3 MPa, where an additional amount is extracted and fed into the open feedwater heater operating at 0.3 MPa.

The steam expanding through the third-stage turbine exits at the condenser pressure of 60 kPa. Feedwater leaves the closed heater at 210°C, 12 MPa, and condensate exiting as saturated liquid at 2 MPa is trapped into the open feedwater heater. Saturated liquid at 0.3 MPa leaves the open feedwater heater. Assume all pumps and turbine stages operate isentropically.


Determine for the cycle:

(a) the heat transfer to the working fluid passing through the steam generator, in kJ per kg of steam entering the firststage turbine.

(b) the percent thermal efficiency.

(c) the heat transfer from the working fluid passing through the condenser to the cooling water, in kJ per kg of steam entering the first-stage turbine.

Consider a regenerative vapor power cycle with two feedwater heaters, a closed one and an open one, and reheat. Steam enters the first turbine stage at 12 MPa, 560 °C, and expands to 1.5 MPa. Some steam is extracted at 1.5 MPa and fed to the closed feedwater heater. The remainder is reheated at 1.5 MPa to 440 °C and then expands through the second-stage turbine to 0.3 MPa, where an additional amount is extracted and fed into the open feedwater heater operating at 0.3 MPa. The steam expanding through the third-stage turbine exits at the condenser pressure of 10 kPa. Feedwater leaves the closed heater at 220 °C, 10 MPa, and condensate exiting as saturated liquid at 1.5 MPa is trapped into the open feedwater heater. Saturated liquid at 0.3 MPa leaves the open feedwater heater. Assume all pumps and turbine stages operate isentropically. Determine for the cycle:
      a) The rate of heat transfer to the working fluid passing through the steam generator, in kJ per kg of steam entering the first-stage turbine.
      b) The thermal efficiency.
      c) The rate of heat transfer from the working fluid passing through the condenser to the cooling water, in kJ per kg of steam entering the first-stage turbine.

7. A. Ben Cohen and Jerry Greenfield originally made ice cream in the back of their own shop. Later they expanded their business into a stock exchange traded corporation and built a factory that produced 240,000 pints per day. What happened to their own ownership when they expanded and built the brand’s first mass production factory?  

B. Many years after their successful expansion, Ben Cohen and Jerry Greenfield were forced, against their will, to sell all of their ownership rights to the Ben and Jerry’s brand name along with its, by then, many factories.   This sale took place against their stated preferences. Explain how and why they were forced to sell the successful company that they had created.    

7. A. Ben Cohen and Jerry Greenfield originally made ice cream in the back of their own shop. Later they expanded their business into a stock exchange traded corporation and built a factory that produced 240,000 pints per day. What happened to their own ownership when they expanded and built the brand’s first mass production factory?  

B. Many years after their successful expansion, Ben Cohen and Jerry Greenfield were forced, against their will, to sell all of their ownership rights to the Ben and Jerry’s brand name along with its, by then, many factories.   This sale took place against their stated preferences. Explain how and why they were forced to sell the successful company that they had created.