Parramatta Scenic Cruises Pty Ltd (PSC) is a family-owned ferry business that operates on Sydney’s Parramatta River. Jane Jetson founded the company when she arrived in Australia and remains the Chief Executive Officer. Jane’s two children, Judy and Elroy, occupy key management roles in PSC. Judy Jetson is the Chief Financial Officer and Elroy Jetson is the tax accountant. PSC reported sales of $11 million for the 2017 financial year.

2) PSC is investigating a proposal to renew part of their fleet that involves replacing an existing ferry with a new, faster, 330-seat ferry costing $3 million. Judy is concerned that the net profit of the new ferry won’t generate a fast enough payback period. Therefore, she has discussed her concerns with Jane. Jane carefully explains to Judy the many reasons that profitability is not a good measure of financial success. Judy then prepares to conduct a rigorous cost-benefit analysis to ensure that the new ferry is financially viable.

3) Last month, Judy and Jane paid for a study by SeaWay Consulting P/L at a cost of $487,000 and the study concluded that the large and growing tourism market will generate sufficient demand for a new ferry. Today, PSC must decide if they will proceed with the investment in the new ferry and the associated sale of their existing ferry.

4) Elroy is really excited about the new ferry. It is a 34-metre, 119 tonnes displacement ferry capable of 35 knots with two cabins and four outside decks with a capacity for 330 passengers. According to the Australian Taxation Office (ATO) the new ferry has a sixteen-year life for taxation purposes.

5) NSW Maritime requires that all vessels have a Certificate of Operation that indicates that the vessel has been inspected and found to comply with the minimum standards set out in NSW maritime legislation. The compulsory certificate is required before PSC commences operations with the new ferry. Certification requires PSC to spend $200,000 on safety equipment. The certificate expires four years later at which time the ferry must be recertified and the safety equipment replaced at an estimated cost of $200,000. Recertification must occur every four years.

6) Because of limitations on the number of vessels at particular wharves on the Parramatta River the new ferry will replace an existing ferry. Even though the new ferry has an effective life of fifteen years, the Jetson family will operate the ferry for ten years only. Jane has arranged for the sale of the existing ferry for $300,000 today. If they don’t proceed with the new ferry PSC will continue to operate the existing ferry for ten years. The existing ferry was purchased six years ago for $2 million. Elroy states that the annual depreciation expense of $200,000 per annum is based on the ten-year tax life at the time of purchase. The existing ferry has a current book value of $800,000.

7) Elroy has suggested that because the new ferry is analysed over a ten-year time period they need to ensure that they recover all the costs they have incurred to date. Therefore, he recommends the $487,000 SeaWay Consulting fee be allocated equally over the ten-year analysis period.

8) PSC will borrow $2 million using a secured ten-year interest-only loan at an interest rate of 5% per annum to partly finance the new ferry. The loan requires annual interest payments of $100,000 starting in one year’s time. Today, inventory will need to increase by $110,000 to $610,000. Accounts receivable will increase to $750,000 from the current figure of $660,000.

9) At the moment PSC is leasing their Harris Park wharf facility to an unrelated entity for $85,000 p.a. The introduction of the new ferry will require that PSC use the wharf on a full-time basis. In this case, PSC must terminate the lease agreement. There is debate among the family members if this lease agreement is an example of a sunk cost or not.

10) At the moment, the existing ferry generates annual cash sales of $1,400,000. This sales figure is predicted to remain constant for each of the next ten years. The new ferry is predicted to generate cash sales in year one of $1.8 million in year 1 and this sales forecast is anticipated to increase by 4% per annum for the foreseeable future.

11) Judy has gathered some information regarding current and expected costs. At the moment, fixed costs are $400,000 per annum. Fixed costs would rise to $500,000 in year one with the new ferry. PSC is confident that they can reduce the increase in fixed costs by 2% p.a. after the first year. Wages expense is currently $900,000 each year and is predicted to increase to $1.4 million with the introduction of the new ferry. Judy reminds the family about the importance of incremental cash flow items when performing a financial analysis.

12) The current annual maintenance cost of the existing ferry is $63,000. The new ferry will require no maintenance in the first three years of its life because it is covered by a manufacturer’s three-year warranty. However, after the warranty expires in year 4 the annual maintenance expense will be $87,000. Jane has advised that PSC has an insurance policy that will insure any number of the company’s vessels at a fixed annual fee of $145,000.

13) It costs $175,000 a year to operate PSC’s head office and marina on the Parramatta River at Harris Park. With careful management PSC believes they will not require any additional personnel in headquarters if they purchase the new ferry. In any case, the annual head office operating expense will increase by just 2% each year.

14) The ATO classifies the safety equipment required for the Certificate of Operation as a business expense, and that expenses incurred in running PSC are tax deductible in the year the expense is incurred.

15) SeaWay Consulting’s report estimates that the new ferry will have a market value of $1 million in ten years’ time. The existing ferry has a book value of $800,000 today and can be sold for $300,000 today. PSC will use these sale proceeds to distribute a $300,000 dividend to its shareholders today. SeaWay Consulting advises that in ten years’ time the existing ferry would be worthless.

16) The company tax rate is 30% and the required rate of return is 12%.

Capital Budgeting Information

Present an itemised breakdown (and the total) for each of the following:

1. The cash flows at the start.

2. The cash flows over the life.

3. The cash flows at the end.

4. The NPV of the new ferry and an explanation of your recommendation.

I. Multiple Choices (10 Points):

1. Angelo is a wholesale meatball distributor. He sells his meatballs to all the finest Italian restaurants in town. Nobody can make meatballs like Angelo. As a result, his is the only business in town that sells meatballs to restaurants. Assuming that Angelo is maximizing his profit, how will meatball prices compare with marginal cost?

a. Meatball prices will be less than marginal cost.

b. Meatball prices will equal marginal cost.

c. Meatball prices will exceed marginal cost.

d. Meatball prices will be a function of supply and demand and will therefore oscillate around marginal costs.

2. When a monopolist increases the amount of output that it produces and sells, what happens to its average revenue and its marginal revenue?

a. Both its average revenue and its marginal revenue increase.

b. Its average revenue increases, and its marginal revenue decreases.

c. Its average revenue decreases, and its marginal revenue increases.

d. Both its average revenue and its marginal revenue decrease.

3. Which of the following feats is impossible for a monopolist to accomplish?

a. controlling the price of its good

b. charging a higher price and continuing to sell the same quantity

c. operating at a point on the upper half of the demand curve

d. increasing total surplus in a market compared to that in a competitive market

4. A monopoly firm can sell 200 units of output for $36.00 per unit. Alternatively, it can sell 201 units of output for $35.80 per unit. What is the marginal revenue of the 201st unit of output? a. –$35.80

b. –$4.20

c. $4.20

d. $35.80

5. A monopoly firm maximizes its profit by producing 500 units output (so Q = 500). At that level of output, its marginal revenue is $30, its average revenue is $40, and its average total cost is $34. What is the firm’s profit-maximizing price?

a. $30

b. between $30 and $34

c. between $34 and $40

d. $40

6. When a new firm enters a monopolistically competitive market, what will happen to the individual demand curves faced by all existing firms in that market?

a. They will shift to the left.

b. They will shift to the right.

c. They will remain unchanged, but the quantity of demand will increase.

d. They will remain unchanged, but the quantity of demand will decrease

7. As some incumbent firms exit a monopolistically competitive market, what happens to profits of existing firms and product diversity in the market?

a. Profits of existing firms decline and product diversity in the market decreases.

b. Profits of existing firms decline and product diversity in the market increases.

c. Profits of existing firms rise and product diversity in the market decreases.

d. Profits of existing firms rise and product diversity in the market increases.

8. When a firm operates at efficient scale, which of the following explains the characteristic of the average-total-cost-curve?

a. Its average revenue must exceed the minimum of average total cost.

b. Its average revenue must be equal to the minimum of average total cost.

c. The average-total-cost curve must be falling.

d. The average-total-cost curve must be rising.

9. When consumers are exposed to additional choices that result from the introduction of a new product, what do we know?

a. Consumers are likely to have a lower degree of satisfaction

b. A product-variety externality is said to occur.

c. An advertising externality is said to occur.

d. Consumers are likely to experience negative consumption externalities.

10. Firm A produces and sells in a market that is characterized by highly differentiated consumer goods. Firm B produces and sells industrial products. Firm C produces and sells an agricultural commodity. Which firm is likely to spend the greatest portion of its total revenue on advertising?

a. Firm A

b. Firms A and B

c. Firm B

d. Firms B and C

Can I get whole answeres for this case?

The case and questions in your side but I can see only five questions' answers but I need to see all solutions.

The Sunrise Bakery Corporation was originally founded.......

6. What is the after-tax net income in each of the six years? 7. Calculate the change in working capital each year from the projected financial statements. 8. What is the terminal value of the project at the end of year 6? 9. Compute the free cash flows for each year. 10. What is the IRR? 11. Calculate the NPV. 12. Using Payback Analysis, how many years until the project pays off the investment? 13. What is the return on invested capital? 14. Should Sunrise Bakery purchase the new oven?

Capstone Case: Sunrise Bakery Expansion The Sunrise Bakery Corporation was originally founded in Houston, TX in 1991 by Griffin Harris, who currently serves as the company's Chief Executive Officer. About four years ago, Griffin's daughter, Erica, moved into the company to serve as Chief Financial Officer. Erica had graduated from college a few years ago and had worked for a few years in retail. However, for the past two years, she had been working quite successfully on an online accounting degree, but she still felt a little uncomfortable in her new role as CFO of the family business. Sunrise produces and markets a variety of bakery products throughout southeast Texas and Louisiana. They operate mostly through warehouse delivery and produce fresh breads, buns, rolls, and snack cakes under a few of their own regional brands but also including some licensed "big name" national brands. In total, they operate five bakeries with one very large facility and four smaller production sites. For the past three years, sales have averaged about $15 Million, generating about $650 Thousand in Net Income per year. However, sales have been roughly flat for the past six years as growth has slowed and production capacity has reached nearly 100%. In order to grow sales, Sunrise Bakery needs to invest in further production capacity. Griffin Harris has been looking to purchase more space, build additional bakeries, or even perhaps acquire one of their smaller competitors, but nothing specific has worked out yet. Erica has an alternative short-term plan to modernize the production process at their main plant. Her idea involves the purchase of a new, significantly faster, integrated commercial oven that she recently saw displayed at a trade show. Few other bakeries in the region have invested in this modern equipment, and she expects it may cut costs and improve output efficiency. Her sales representative suggests the new oven could raise incremental sales at their large bakery by 15%. Installation of the oven could be mostly executed over the upcoming Labor-day long weekend and shouldn't disrupt sales or production too much. However, the new oven requires an expenditure of $350,000, which would be a large capital expenditure for Sunrise. To reflect the wear and tear on the oven, tax law allows for a 10% annual reduction in the value of the oven as a depreciation expense. That is, Erica’s financial forecast includes a non-cash expense of $35,000 for each of the next six years. After six years, Erica’s sales representative expects the oven to be worth about $140,000, which is just equal to the accounting book value of the oven after six years of accumulated depreciation ($140,000 = $350,000 – 6 * 10%*$350,000). Operation of the oven also requires a small initial investment in an inventory of spare parts of $15,000. The inventory should be fully recoverable for $15,000 if the machine is sold. The investment in inventory represents an increase in other current assets (inventory) that should be included as a change in working capital requirements for Sunrise Bakery. Sunrise estimates receivables at 1.5% of revenues and payables at 2% of revenues each year. At the end of the project, Erica expects to recover all of the working capital invested in the project. In other words, she expects a cash flow equal to the amount of Non-Cash Current Assets less Current Liabilities in the last year of the project. Erica’s financial forecast for the new oven does not require any significant change in financing. Sunrise started with one small bakery entirely paid for with cash from Griffin Harris and a mortgage on the bakery property. Currently, Sunrise maintains a rough capital structure of about 25% debt and 75% equity. In Erica's forecast, she expects to purchase the new oven with available cash and retained earnings (Sunrise's own money) and without any additional drawdown on their bank line of credit (no new debt). Sunrise currently pays about 4.5% on their debt, and that rate is not expected to change with the additional purchase of the oven. No additional external financing should be needed, and after discussions with her loan office, Erica expects the bank will approve the purchase of the oven without any effect on their line of credit. Overall, the cash purchase of the oven is not expected to change the capital structure of the Sunrise Corporation. However, since the oven will become part of the assets of Sunrise, the bank could seize the oven should Sunrise fail to make payments on their current debt. Erica remembered from her online classes that she needs to assess the risk of her business when making important financial decisions. In researching similar large public bakery and other food manufacturers, she found that firms in her industry with about the same level of risk mostly had stock market betas around 0.80 on average. She also noted that many analysts used a ballpark equity risk premium of 5.5% and a current yield on U.S. treasury bonds (risk-free rate) of about 3%. Sunrise has a corporate tax rate of 30%. To help understand the costs and benefits of the decision, Erica worked closely with her director of operations, plant manager, marketing team, and her father to produce some realistic sales, costs, and financial forecasts. Her team felt uncomfortable forecasting more than 5 or 6 years into the future. Her focus was on how the new oven might improve incremental revenue generation at their large plant. The case exhibits below contain Erica's financial projections for the project. In discussing her plan to purchase the new oven, Erica's father seems more than a little worried that the new machinery is not worth the cost and that Erica's motivations may not be based on sound financial decision making. As Erica looked over the financial forecasts, market data, line of credit agreement, and the intimidating $350,000 invoice that would soon follow, she wondered how she could convince her father, and herself, that purchasing the new oven would be a sound financial decision. Sunrise Bakery Capstone Case questions In this case analysis, our objective is to will bring together all the tools we picked up throughout the four modules incorporating discounted cash flows, estimating free cash flow forecasts, analyzing the cost of capital and computing various capital budgeting tools. The open-ended platform of a case study is to put the tools and concepts we have developed into a more real-world and practical setting. Using this information given in the case, your job is to figure out whether or not to make the investment by computing all of the capital budgeting tools that we covered in week 2. This involves calculation of the free cash flows following the process we outlined in week 3 and computing the discount rate we covered in week 4. Exhibit 2 below provides a worksheet for calculating the free cash flows using the financial statement forecast given in Exhibit 1. In addition to the worksheet provided in Exhibit 2, a spreadsheet template has also been uploaded. Please feel free to use this template to complete the case using the spreadsheet tools we covered in weeks one and two.

Just answer dont need to explain

1. Which of the following is TRUE about the working-age population? It consists of two groups of people:
   1. in the labour force and people looking for work.
   2. in the labour force and people with a jo
   3. looking for work and those in the armed forces.
   4. in the labour force and people who are not in the labour force.
2. Country A has 100 unemployed and 1000 employed individuals. The working-age population is 1,400. Therefore, the labour force participation rate is:
   1. 71.4%
   2. 78.6%
   3. 100%
   4. 107%
3. Which of the following best describe an unemployed? A person who is:
   1. retired and not working.
   2. working less than a full work week.
   3. not working and looking for work.
   4. not working and not looking for work.
4. Natural rate of unemployment includes:
   1. frictional unemployment.
   2. frictional and structural unemployment.
   3. frictional, structural, and cyclical unemployment.
   4. none of the above.
5. Mike has been unemployed for over a year. He hasn't looked for a job in the last three months, but he's just started looking for work again. Because Mike started looking for a new job,
   1. the unemployment rate increased.
   2. the labor force participation rate decreased.
   3. the unemployment rate decreased.
   4. the working-age population increase

6. Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is ________ and the new unemployment rate is ________.
   1. 100.1 million; 5.8 percent
   2. 100 million; 6.1 percent
   3. 94.1 million; 5.9 percent
   4. 93.9 million; 6.1 percent

Table E

7. Table E shows answers given by people interviewed in a government survey of households. Which individuals are considered to be a part of the labor force?
   1. Cathy and Donald
   2. Bobby, Cathy, and Donald
   3. Anna, Cathy, and Donald
   4. Anna, Bobby and Cathy
8. Table E shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed？
   1. Anna, Bobby, and Cathy
   2. Bobby, Cathy, and Donald
   3. Anna, Cathy, and Donald
   4. Cathy and Donald
9. Which of the following describe Frictional unemployment?
   1. unemployment associated with business cycle recessions
   2. unemployment associated with the changing of jobs in a changing economy
   3. long-term unemployment
   4. unemployment associated with declining industries

10. Suppose that over a period of years Country B switched from being an agriculturally-based economy to a technologically-based economy. As a result, many people lost jobs because they lacked the correct skills. As they search for new jobs, these people are part of:
    1. frictional unemployment.
    2. structural unemployment.
    3. cyclical unemployment.
    4. discouraged workers.

Over the past several years, decommissioned U.S. warships have been turned into artificial reefs in the ocean by towing them out to sea and sinking them. The thinking was that sinking the ship would conveniently dispose of it while providing an artificial reef environment for aquatic life. In reality, some of the sunken ships have released toxins into the ocean and have been costly to decontaminate. In the late 1990s, at least two international conventions have made it all but impossible to export used warships for salvage without removing all military equipment, conducting a complete cleanup and cutting the ship into such comparatively small pieces as to make the entire exercise relatively expensive.

The new environmental regulations have made disposal of ships an expensive project. The United States has hundreds of mothballed warships, presenting an extremely expensive problem for military authorities and the government. Now the U.S. government is taking bids to instead dismantle and recycle ships that have recently been decommissioned (but have not been sunk yet.)

Assume that a recently decommissioned aircraft carrier, the USS Blaze, is estimated to contain 40 tons of recyclable materials able to be sold for approximately $32.8 million. About 90% of the value in old ships is the metals, including steel, copper, copper alloys, and lead that can be removed, sold for remelting, and reformed into new metal products. There are also some high-value metals; such as, nickel alloys, stainless steel, and titanium that can be found in some parts of all warships but may be present is such small quantities that recovery and resale may not be cost effective. The low bid for dismantling and transporting the ship materials to appropriate facilities is $34.5 million. Recycling and dismantling the ship would create about 500 jobs for about a year on the West Coast area. This geographic area has been experiencing record-high unemployment rates in recent years.

As an alternative, reefing these ships would create new habitats for underwater life and can be done using newer environmentally safe methods. These new artificial reefs would enhance fishery resources and facilitate the access and utilization by recreational and commercial fishermen. Artificial reefs can also increase tourism by attracting sport divers for recreational purposes. Academic organizations may be interested in using the site to study fish and other marine life which may open the door for more funding from these research activities. Research has shown that a new reef will attract 60,000 – 70,000 divers and add more than 10 million to the local tourism industry. Research has also shown that artificial reefs can substantially increase the population of reef-associated species. Within months the G. B. Church artificial reef in British Columbia had hundreds of encrusted individuals on its hull and within 2.5 years had seen an increase of nearly 100 species.

Reefing the ship would cost an estimated 800K (or $0.8 million) which includes cleaning of the vessel of toxics, oils and greases, PCB containing electrical and electronic equipment and other readily removable PCB containing equipment, local towing and docking, preparation (unspecified) and other incidental overhead items, insurance, and making the vessels safe for divers (diverizing). There will also be yearly maintenance costs in perpetuity.

1. Is it more financially advantageous to sink the ship or to dismantle and recycle it? Show your calculations. (Worth 4 pts.)

Recycling=$32,800,000

Dismantle and transport=$34,500,000

Reefing the ship= $800,000

To dismantle and recycle the ship would cost, 34,500,000-32,800,000=$1,700,000, while sinking/reefing the ship would cost $800,000. This means that it would be more financially advantageous to sink or reef the ship because it would save a total of $900,000.

2. From a sustainability standpoint, what should be done with the decommissioned aircraft carrier? (Worth 4 pts.)

3. List some of the other quantitative and qualitative factors that should enter into this analysis. (Worth 10 pts.)

4. As a taxpayer(s), which action would you prefer (sink or recycle)? Defend your answer. (Worth 4 pts.)

Mandy is a 10-year-old female with cystic fibrosis who weighs 62 pounds and is 51 inches tall and is considered low active.

1-Calculate Mandy’s estimated energy requirement given her DRI and medical condition using the following information (5 points) EER for Girls 9 through 18 Years EER = 135.3 – (30.8 ´ age [y]) + PA ´ (10.0 ´ weight [kg] + 934 ´ height [m]) + 25 kcal PA = 1.00 if PAL is estimated to be ≥ 1.0 < 1.4 (sedentary) PA = 1.13 if PAL is estimated to be ≥ 1.4 < 1.6 (low active) PA = 1.26 if PAL is estimated to be ≥ 1.6 < 1.9 (active) PA = 1.42 if PAL is estimated to be ≥ 1.9 < 2.5 (very active)

2-Calculate Mandy’s protein requirement given her DRI and medical condition (5 points). EER DRI Table

3-The estimated calorie requirement for an individual with cystic fibrosis is two to four times the usual recommendation. How would one know the appropriate calorie level to recommend initially? (5 points)

4-Research nutrition recommendations for cystic fibrosis that can assist an individual with meeting her high calorie and protein requirements (i.e., use the text and reputable websites). What advice could you provide to a patient?

Mandy is a 10-year-old female with cystic fibrosis who weighs 62 pounds and is 51 inches tall and is considered low active.

1-Calculate Mandy’s estimated energy requirement given her DRI and medical condition using the following information (5 points) EER for Girls 9 through 18 Years EER = 135.3 – (30.8 ´ age [y]) + PA ´ (10.0 ´ weight [kg] + 934 ´ height [m]) + 25 kcal PA = 1.00 if PAL is estimated to be ≥ 1.0 < 1.4 (sedentary) PA = 1.13 if PAL is estimated to be ≥ 1.4 < 1.6 (low active) PA = 1.26 if PAL is estimated to be ≥ 1.6 < 1.9 (active) PA = 1.42 if PAL is estimated to be ≥ 1.9 < 2.5 (very active)

2-Calculate Mandy’s protein requirement given her DRI and medical condition (5 points). EER DRI Table

3-The estimated calorie requirement for an individual with cystic fibrosis is two to four times the usual recommendation. How would one know the appropriate calorie level to recommend initially? (5 points)

4-Research nutrition recommendations for cystic fibrosis that can assist an individual with meeting her high calorie and protein requirements (i.e., use the text and reputable websites). What advice could you provide to a patient? (10 points)

1.According to the Port Authority of New York and New Jersey, 81.9% of New Jersey Transit trains ran  on time during 2018.  Assume that this percentage still holds true.  Using the normal approximation to the binomial distribution, determine the probability that the next 30 trains

a.   a. Fewer than 22 trains will run on time

b.   b.Exactly 26 trains will run on time

c.       c. 21,22,23, or 24 will run on time.

2. Consider that the hits on the Amazon website follow  the exponential distribution with a mean time of 2.7 minutes.

a.       a. What is the probability that the next hit on Amazon will occur in the next 5 minutes.

b.      b. What is the probability that the next hit will be between the next 2 to 6 minutes?

c.       c. What is the probability that the next hit will occur after the next 3 minutes?

3. Whole Foods has 18 two-liter bottles of a new Probiotic drink on the shelf, 4 of which had exceeded the shelf-life date.  You randomly select 3 bottles of the new drink without checking the expiration date.  Determine the probability that:

a.       a. None of the bottles have exceeded the expiration date.

b.      b. At least two bottles had exceeded the expiration date.

c.       c. Calculate the mean and standard deviation of this distribution.

Imagine that you have recently attained a new job. It's a new establishment with new people. Assume that no formal introduction is given to help you learn about the culture. How would you learn what the culture is?