Questions
Alternative A and Alternative B are being considered for recovering aluminum from garbage. Alternative A –...

Alternative A and Alternative B are being considered for recovering aluminum from garbage. Alternative A – has a capital cost of $100,000, a first year maintenance cost of $15,000, with maintenance increasing by $500 per year for each year after the first. Alternative B - has a capital cost of $120,000, a first year maintenance cost of $17,000, with maintenance increasing by $1,000 per year after the first. Revenues from the sale of aluminum are $20,000 in the first year, increasing $2,000 per year for each year after the first. Life of both alternatives is 10 years. There is no salvage value. The before-tax MARR is 10%. Using present worth analysis, determine which alternative is preferred.
a.) The present worth of alternative A
b.) The present worth of alternative B

In: Economics

I appreciate your help! 1. Generally, if the owner of an IRA dies before beginning required...

I appreciate your help!

1. Generally, if the owner of an IRA dies before beginning required minimum distributions, the designated beneficiary must:

A. Take the entire amount in lump-sum in the year after the year of death.
B. Take the required minimum distributions for the years after the year of death.
C. Take the entire amount within five years after the year of death.
D. Begin to take the required minimum distributions when the beneficiary turns 70½.

2. James, who lives in Texas, is searching for like-kind replacement property for his investment-use unimproved land. Each of the following is qualified like-kind property EXCEPT:

A. An office building located in California.
B. An apartment building located in Oklahoma.
C. A 25-year lease of unimproved land in Texas.

In: Accounting

Blocks A (mass 3.00 kg) and B (mass 12.00 kg, to the right of A) move...

Blocks A (mass 3.00 kg) and B (mass 12.00 kg, to the right of A) move on a frictionless, horizontal surface. Initially, block B is moving to the left at 0.500 m/s and block A is moving to the right at 2.00 m/s. The blocks are equipped with ideal spring bumpers. The collision is head on, so all motion before and after it is along a straight line. Let +x be the direction of the initial motion of A.

Find the maximum energy stored in the spring bumpers.

Find the velocity of block A when the energy stored in the spring bumpers is maximum.

Find the velocity of block B when the energy stored in the spring bumpers is maximum.

Find the velocity of block A after the blocks have moved apart.

Find the velocity of block B after the blocks have moved apart.

In: Physics

Your firm has 10 million shares outstanding currently priced at $40 a share. There is no...

Your firm has 10 million shares outstanding currently priced at $40 a share. There is no debt. The firm wishes to raise $15 million through a rights-issue with subscription price of $15.

a) How many rights would be needed to buy a new share?

b) What is the total value of the firm before and after the rights-issue?

c) What is the total number of shares after rights-issue?

d) What is the share price after the issue (the ex-rights price)?

e) What is the price of one right? f) (3 points) What would be the total market value of the firm if it decides to raise the new capital ($15 million) through perpetual debt (instead of a rights-issue)? Assume corporate tax rate is 35%.

In: Finance

Boxes  A ( 5.00 kg ) and B( 14.00 kg , to the right of A) move...

Boxes  A ( 5.00 kg ) and B( 14.00 kg , to the right of A) move on a frictionless, horizontal surface. Box BBis traveling to the left at 0.500 m/s, and box A is traveling to the right at 2.00 m/s initially. The boxes are attached with ideal spring bumpers. Eventually, they have head-on collision. consider that all motion before and after it is along a horizontal axis. Assume that  +x is the direction of the initial motion of A.

A-)Find the maximum energy stored in the spring bumpers.

B-)Calculate the velocity of block A when the energy stored in the spring bumpers is maximum.

C-)Calculate the velocity of block B when the energy stored in the spring bumpers is maximum.

D-)Calculate the velocity of block A after the blocks have moved apart.

E-)Calculate the velocity of block B after the blocks have moved apart.

In: Physics

Boxes A 7.00 kg and B 15.00 kg , to the right of A move on...

Boxes A 7.00 kg and B 15.00 kg , to the right of A move on a frictionless, horizontal surface. Box B is traveling to the left at 0.500 m/s, and box A is traveling to the right at 2.00 m/s initially. The boxes are attached with ideal spring bumpers. Eventually, they have head-on collision. consider that all motion before and after it is along a horizontal axis. Assume that +x is the direction of the initial motion of A.
a) Find the maximum energy stored in the spring bumpers.
b) Calculate the velocity of block A when the energy stored in the spring bumpers is maximum.
c) Calculate the velocity of block B when the energy stored in the spring bumpers is maximum.
d)Calculate the velocity of block A after the blocks have moved apart.
e) Calculate the velocity of block B after the blocks have moved apart.

In: Physics

1.An investor buys a 9-year, 6.9% annual coupon bond at par ($100). After the purchase and...

1.An investor buys a 9-year, 6.9% annual coupon bond at par ($100). After the purchase and before the first coupon is received, interest rates increase to 8.9% (assume a flat spot rate curve). The investor sells the bond after 7 years (right after receiving the 7th coupon payment). What is this investor's realized annual return in these 7 years?

Assume annual compounding, and that interest rates remain at 8.9% over the entire holding period.

2.An investor with an investment horizon of 1.0 year purchases a 8% coupon bond with 2 years to maturity and a face value of $100? The bond is trading at a yield of 5%. Coupons are paid semi-annually. What is this investor's duration gap?

Assume semi-annual compounding. Round your answer to 4 decimal places.

In: Finance

Knarfappaz Co. pays no taxes and is financed entirely by common stock. The stock has a...

Knarfappaz Co. pays no taxes and is financed entirely by common stock. The stock has a beta of 0.8 and a price-earnings ratio of 12.5 and is priced to offer an 8% expected return. Knarfappaz now decides to repurchase half the common stock and substitute an equal value of debt. If the debt yields a riskfree 5%, calculate: A. The beta of the common stock after the refinancing; B. The required return and risk premium on the stock before the refinancing; C. The required return and risk premium on the stock after the refinancing; D. The required return on the debt; E. The required return on the company (i.e., stock and debt combined) after the refinancing. Assume that the operating profit of the firm is expected to remain constant in perpetuity. Give: F. The percentage increase in expected earnings per share; G. The new price/earnings ratio (P/E).

In: Finance

n a test of the effectiveness of garlic for lowering​ cholesterol, 48 subjects were treated with...

n a test of the effectiveness of garlic for lowering​ cholesterol, 48 subjects were treated with garlic in a processed tablet form. Cholesterol levels were measured before and after the treatment. The changes in their levels of LDL cholesterol​ (in mg/dL) have a mean of 4.8 and a standard deviation of 17.6. Complete parts​ (a) and​ (b) below.

a)What is the best point estimate of the population mean net change in LDL cholesterol after the garlic​ treatment?

b)Construct a 95​% confidence interval estimate of the mean net change in LDL cholesterol after the garlic treatment. What does the confidence interval suggest about the effectiveness of garlic in reducing LDL​ cholesterol? What is the confidence interval estimate of the population mean μ​?

c)What does the confidence interval suggest about the effectiveness of the​ treatment?

In: Statistics and Probability

Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late...

Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $35,000 bill from her accountant for consulting services related to her small business. Reese can pay the $35,000 bill anytime before January 30 of next year without penalty. Assume Reese’s marginal tax rate is 30 percent this year and will be 40 percent next year, and that she can earn an after-tax rate of return of 10 percent on her investments.

a. What is the after-tax cost if she pays the $35,000 bill in December?

b.What is the after-tax cost if she pays the $35,000 bill in January?

c. Based on requirement a and b, should Reese pay the $35,000 bill in December or January?

In: Accounting