Acme Corp has a target debt/equity ratio of 0.35. It was $350 million in bonds outstanding with a yield of 7% and 50 million shares of stock outstanding with a current market price of $20 per share. The company’s beta is 1.32 and the risk-free rate of interest is 4% with a market risk premium of 6%. The firm has a tax rate of 25%. The company is looking to raise $250 million to build a second factory. The new factory will increase output substantially. The table below shows the anticipated cash flows generated from the new factory including a salvage value in year 5. What is the IRR of this project?

Group of answer choices

13.47%

14.21%

15.58%

12.26%

USIL Company has developed a new detergent that can be sold for KES 350 per unit. The company has undertaken market research at a cost of KES 12 million in order to forecast the future cash flows of the investment project. The detergent is expected to continue gaining popularity for many years. The Chief Finance Officer has, however, proposed that investment in the new product should be evaluated over a four-year time-horizon, (even though sales would continue after the fourth year), on the grounds that cash flows after four years are too uncertain to be included in the evaluation. The variable and fixed costs (both in current price terms) are as follows:

The forecasted sales volumes are as follows:

The machinery required for production of the new detergent line would cost KES 200 million. An additional initial investment of KES 125 million will be needed for working capital. Plato Manufacturing Company pays corporate tax at the rate of 30% per year, payable one year in arrears. Selling price and cost information are in current price terms, before applying selling price inflation of 6% per year, variable cost inflation of 4 % per year and fixed cost inflation of 6% per year.

USIL Company uses an after-tax cost of capital of 14% to appraise all new capital projects. Assume that production lasts for only the four years under consideration above, calculate the NPV of investing in the new machine and advice if it’s financially acceptable (work to two decimal places).

Please answer in 250-350 words please.

What is a PMS? What are the key features PMS should have to operate the hotel more effectively and efficiently? What other systems should PMS be seamlessly connected for better communication and management from the operators’ perspectives?

A thin 0.200-kg rod that is 350 mm long has a small hole drilled through it 87.5 mm from one end. A metal wire is strung through the hole, and the rod is free to rotate about the wire.

A. Determine the rod's rotational inertia I about this axis.

B. Determine the period of the rod's oscillation.

Q1. Sam and Kevin want to know if the percentage of American consumers using Kally has dropped from its historical level of 37% of American consumers. Sam and Kevin gather a sample of 750 consumers and ask them if they use Kally. The results of this survey are presented below.

Uses Kally 240

Do not use Kally 510

total 750

A. If there is evidence that the percentage of U.S. consumers using Kally is less than 37%, Sam and Kevin will spend $50,000 on additional market research to find out why Kally use is declining. Sam and Kevin would like to operate with 99% confidence, 1% importance.

B. Conduct a hypothesis test to find out if there is evidence that the percentage of American consumers who use Kally is less than 37%. Should Sam and Kevin spend $50,000 on additional market research? Use the class format.  

C. What are the Type I and Type II errors in your test?

Q2.  Sam and Kevin want to know if the average amount American consumers spend on Kally each week has changed from the $5.10 per week that American consumers have historically spent on Kally. Sam and Kevin put together a random sample of 20 American consumers and find out how much each consumer spends on Kally each week. Consumer spending on Kally is known to follow a normal distribution. This sample has an average spending of $5.01, and a standard deviation of $0.25.

A. If there is evidence that the average amount spent on Kally is different from the historical $5.10 per week, Sam and Kevin will spend $500,000 to change their production line to increase the flexibility of their production process.

B. Perform a hypothesis test to determine if there is evidence that the average amount spent at Kally is different from the historical $5.10 per week. Using a significance of 5%, 95% confidence level, would you advise Sam and Kevin to increase the flexibility of their production line?

C.  Let's assume that the truth is that the average amount spent at Kally is the historic $5.10 per week. How often would your testing procedure report that there is evidence that the average amount spent at Kally is different from $5.10?

On a beautiful day you decide to go for a bicycle ride. First you ride for 10 miles at 30 degrees south of east and then for 8.0 miles at 60 degrees north of west. What is the magnitude of your displacement?  

options:

A boat leaves a dock at 2:00 PM and travels due south at a speed of 15 km/hr.
Another boat has been heading due east at 20 km/hr and reaches the same dock at
3:00 PM. How many minutes after 2:00 PM were the two boats closest together?

Keith’s Florists has 16 delivery trucks, used mainly to deliver flowers and flower arrangements in the Greenville, South Carolina, area. Of these 16 trucks, 6 have brake problems. A sample of 5 trucks is randomly selected. What is the probability that 2 of those tested have defective brakes? (Round your answer to 4 decimal places.)

the following are the monthly sales (in thousands of dollars) for a company in four regions of the country.

Does the data suggest that there is a difference in the mean monthly sales among the different regions?

A) In 4000 words, Discuses, What is the role of OPEC and what has it done to regulate the price? Explain this using the principles of cartel economics.

B) In 5000 words Discus, where does South Africa import fuel from? And why?

C) In 4000 words, Explain the supply side risks necessitating the need for strategic fuel reserves?