Taxes are costs, and, therefore, changes in tax rates can affect consumer prices, project lives, and the value of existing firms. Evaluate the change in taxation on the valuation of the following project:

Assumptions: Tax depreciation is straight-line over three years. Pre-tax salvage value is 25 in year 3 and 50 if the asset is scrapped in year 2. Tax on salvage value is 40% of the difference between salvage value and book value of the investment. The cost of capital is 20%.

1. Please verify that the information given above yields NPV = 0.
2. If you decide to terminate the project in year two (2) what would be the NPV of the project?
3. Suppose that the government now changes tax depreciation to allow a 100% write-off in year one (1). How does this affect your answers to parts a and b above?
4. Would it now make sense to terminate the project after two rather than three years?
5. How would your answers change if the corporate income tax were abolished entirely?

Analyzing Operational Changes
Operating results for department B of Delta Company during 2016 are as follows:

If department B could maintain the same physical volume of product sold while raising selling prices an average of 15% and making an additional advertising expenditure of $60,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.)

Use a negative sign with your answer to indicate if the effect increases the company's net loss.

If Department B increased its selling price by 15%, the effect on net income (loss) would be $Answer

.

1)

A family’s ability to continue to function along established patterns of behavior despite stressful changes is

(1pts)

A. Resiliency

B. Elasticity

C. Buoyancy

D. Adaptability

2)

The ABC-X model of family stress focuses on the cause, the perception of the change, and

(1pts)

A. The nature of the family members involved

B. The severity of the stress

C. The family’s coping mechanisms

D. The number of family members involved

3)

At what age are women at the greatest risk for being victims of domestic violence?

(1pts)

A. 15-19

B. 20-24

C. 40-45

D. 70-74

4)

Social cognition theory of the effects of family violence on children holds that

(1pts)

A. Violent and abusive behavior is learned. Abusive children learn abusive behaviors from the abuser

B. A child’s interpretation of a certain situation may not be as hostile as he or she may perceive. Changing the children’s impressions may help children overcome the abusive situation

C. Different traits and coping mechanisms are passed from generation to generation within a family

D. How a negative event is handed depends on the extent of the trauma that a victim experiences.

5)

According to research, which of the following makes child-to-parent abuse more likely?

(1pts)

A. Parental leniency

B. Parental neglect

C. Exposure to violent video games

D. Parental demandingness

Taxes are costs, and, therefore, changes in tax rates can affect consumer prices, project lives, and the value of existing firms. Evaluate the change in taxation on the valuation of the following project:

Assumptions: Tax depreciation is straight-line over three years. Pre-tax salvage value is 25 in year 3 and 50 if the asset is scrapped in year 2. Tax on salvage value is 40% of the difference between salvage value and book value of the investment. The cost of capital is 20%.

1. Please verify that the information given above yields NPV = 0.
2. If you decide to terminate the project in year two (2) what would be the NPV of the project?
3. Suppose that the government now changes tax depreciation to allow a 100% write-off in year one (1). How does this affect your answers to parts a and b above?
4. Would it now make sense to terminate the project after two rather than three years?
5. How would your answers change if the corporate income tax were abolished entirely

Please show the detailed process

This question asks questions about the movie called the BIG SHORT

Discussion- Changes in company values from market conditions

Questions--Talk about what happened in the marketplace, and what impact the market had on the values of the securities in question. Where did the value go from Bear Stearns and Lehman Brothers?

How would the following changes in price affect total revenue? That is, would total revenue increase, decline, or remain unchanged?

1. Price falls and demand is inelastic.

2. Price rises and demand is elastic.

3. Price rises and supply is elastic.

4. Price rises and supply is inelastic.

5. Price rises and demand is inelastic.

6. Price falls and demand is elastic.

7. Price falls and demand is of unit elasticity

Case Study: Applying a Completely Randomized Design (Detecting Changes in Consumer Comfort)

In a study conducted to investigate browsing activity by shoppers, each shopper was initially classified as a nonbrowser, light browser, or heavy browser. For each shopper, the study obtained a measure to determine how comfortable the shopper was in a store. Higher scores indicated greater comfort. Suppose the following data were collected:

Nonbrowser               Light Browser             Heavy Browser

4                                  5                                  5

5                                  6                                  7

6                                  5                                  5

3                                  4                                  7

3                                  7                                  4

4                                  4                                  6

5                                  6                                  5

4                                  5                                  7

Using a .05 level of significance, conduct a completely randomized design hypothesis test, followed by a post-hoc comparison test if you rejected the null hypothesis. Please provide the 5 steps for both the main effect and the post-hoc test (if required), the Minitab output for each hypothesis test, and state the business implication based upon your analysis. You must use Minitab and the 5 step hypothesis testing process.

Here’s an example of reporting results in APA style:

An one way analysis of variance showed that the effect of noise was significant, F(3,27) = 5.94, p = .007. Post hoc analyses using the Tukey post hoc criterion for significance indicated that the average number of errors was significantly lower in the white noise condition (M = 12.4, SD = 2.26) than in the other two noise conditions (traffic and industrial) combined (M = 13.62, SD = 5.56), F(3, 27) = 7.77, p = .042.

Use this prototype to report results:

A one way analysis of variance showed that the effect of fill in the effect description was/was not significant, F(fill in num and denom df , ) = fill in observed F, p = fill in p-value. Post hoc analyses using the Tukey post hoc criterion for significance indicated that describe any differences and provide the M and SD, F(fill in the df for numerator and denominator) = fill in observed F, p = fill in p-value.

To conduct this test in Minitab, please use the following process:

Stack the data in columns as given above. To begin a one-way ANOVA with Stacked Data, select Stat from the menu bar. Select ANOVA from the pulldown menu. Select One-Way. In the slot Response, list the column containing the observations. In the slot Factor, list the column containing the group identifiers. For multiple comparisons, select Comparisons and make your selection from the dialog box that appears. The multiple comparison options are Tukey’s, Fisher’s, Dunnett’s, or Hsu’s MCB tests. In the multiple comparison dialog box, you can insert the family error rate in the box on the right as a whole number.

Stock A and stock B both follow geometric Brownian motion. Changes in any short interval of time are uncorrelated with each other. Does the value of a portfolio consisting of ONE of stock A and TWO of stock B follow geometric Brownian motion? Explain your answer.

Recent landscape changes in accounting and auditing developed from corporate fraud and, arguably, auditor failure. In order to continually lead and adapt to the dynamics of regulation, principles based accounting practices and auditing standards, what types of skills and traits are auditors required to possess?