You were ecstatic when you heard the news that your cousins Archie came into a large inheritance last year and invested the entire amount in the common stock of commonwealth Brewery, a large manufacturing of liquid drinking products. Subsequently he has been very interested in the company and watches it closely. Recently, the Nassau Guardian carried a story about major strategic changes at the company including massive layoffs and business realignments. Archie was devastated and was dumb-founded. He does not understand how the firm could have made such changes without the knowledge and approval of its stockholders. Write a brief letter to Archie explaining how things really work.
In: Finance
We are evaluating a project that costs $500,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 50,000 units per year. Price per unit is $40, variable cost per unit is $25, and fixed costs are $600,000 per year. The tax rate is 35 percent, and we require a return of 12 percent on this project.
a. Calculate the accounting break-even point.
b-1 Calculate the base-case cash flow and NPV.
b-2 What is the sensitivity of NPV to changes in the sales figure?
c. What is the sensitivity of OCF to changes in the variable cost figure?
In: Finance
using the same software process model is not necessarily the
best way to
engineer all projects. Based on what you studied, answer the
following:
1. Differentiate between processes and methodologies.
2. Determine a suitable process model for the following
projects
a) An enterprise software system where the stakeholders do not well understand requirements. Thus, requirements are expected to be extremely changeable due to external changes, changing expectations, changes in the budget and the rapid change in technology.
b) An online medical store where users are not determined about their requirements. However, cost, errors avoidance and implementation have a higher priority over the functionality, which can be added in later versions.
In: Computer Science
a steam power plant operates on a superheated rankine cycle where steam at 10kg/s entering the turbine at 5MPa and 375 degree celcius and leaving the turbine at saturated vapor at pressure 100 times less then initial. If the compressor efficiency is 85% ,
I) sketch the cycle of T-s diagram
ii) calculate the temperature and pressure for all points in the cycle
iii) calculate the compressor work
iv) calculate the turbine work and turbine efficiency
v.) calculate the thermal efficiency of the cycle
vi) if the efficiency of turbine and compressor is 100%;
a) is there any changes in temperature of the steam leaving the compressor and turbine? why?
b) Is there is any changes in the thermal efficiency of the cycle? prove the statement
In: Mechanical Engineering
Sara earns $200 in the first period and $100 in the second period. She lives in the two-period Fisher model of consumption. Therefore, she can borrow or lend at the interest rate r. considering the two-period Fisher’s model,
a) Write down her intertemporal budget constraint.
b) Assume that She is consuming 150 in the first-period and 160 in the second-period. What is the interest rate?
c) What will happen to Sara’s consumption if the interest rate changes to r=10%. Support your interpretation with a related graph.
d) What will happen to Sara’s consumption if interest rate changes to r=30%. Support your interpretation with a related graph.
In: Economics
Solano Company has sales of $820,000, cost of goods sold of $530,000, other operating expenses of $60,000, average invested assets of $2,400,000, and a hurdle rate of 11 percent.
2. Several possible changes that Solano could
face in the upcoming year follow. Determine each scenario’s impact
on Solano’s ROI and residual income. (Note: Treat each scenario
independently.)
a. Company sales and cost of goods sold increase
by 30 percent.
b. Operating expenses decrease by $11,000.
c. Operating expenses increase by 20
percent.
d. Average invested assets increase by
$460,000.
e. Solano changes its hurdle rate to 16
percent.
In: Accounting
1.Think of a design change that you have witnessed or researched. Evaluate the pace and timing, scope and sequencing, communication, and feedback and learning in the initiative. What would you change about the transition?
2. Choose one of the quadrants of the Competing Values Framework and describe an organization that you think matches the characteristics of that quadrant. Now choose any other quadrant. What do you think would be the challenges in transitioning an organization to that quadrant? What kinds of organization design changes would support that transition? What design changes would be resisted by members
Submission Instructions: Your initial post should be 100-200 words per question, per question
In: Operations Management
Assume Nike is exposed to a currency portfolio weighted 50
percent in Canadian dollars and 50 percent in Mexican pesos. Nike
estimates the standard deviation of quarterly percentage changes to
be 4 percent for the Canadian dollar and 6 percent for the Mexican
peso. Also assume that Nike estimates a correlation coefficient of
0.2 between these two currencies.
a) Calculate the portfolio’s standard deviation.
b) Assuming i) normal distribution of the quarterly percentage
changes of each currency (and so the same of the portfolio as
well), and ii) an expected percentage change of -1 percent for the
currency portfolio, calculate the maximum one-quarter loss of the
currency portfolio based on a 95 percent confidence level.
In: Finance
Please Number Your Answers 1. McDonalds in the early Kroc years. a. What was the value proposition offered by McDonalds? What brought customers (repeatedly) in the door? b. What did the SWOT analysis look like at this time? 2. McDonalds in the Skinner years (c, 2003) a. Had the value proposition changed? b. How does a SWOT analysis look different? c. What do those changes suggest about the need to adapt? 3. McDonalds (2017) a. How does a SWOT analysis look different? b. What do those changes suggest about the needing to constantly challenge your value propositions for your targeted markets?
In: Operations Management
Table 3 provides the most recent financial values for Firm Z. The CFO wants to implement strategic and operational changes that will lower the firm’s DSO to 40 days, DIH to 35 days, and increase DPO to 50 days. Assuming that these changes can be met without reducing revenues or CGS, calculate the resulting increase in operating cash flow due to reducing the CCC. Lastly, discuss any weaknesses in the model assumptions that might result in the projected increase in operating cash flow not materializing.
Table 3 Most Recent Values for Firm Z
Accounts Receivable $51
Inventory $17
Accounts Payable $13
Revenues $150
CGS $122
In: Finance