Questions
The Cornchopper Company is considering the purchase of a new harvester. The new harvester is not...

The Cornchopper Company is considering the purchase of a new harvester.

The new harvester is not expected to affect revenue, but operating expenses will be reduced by $14,600 per year for 10 years.

The old harvester is now 5 years old, with 10 years of its scheduled life remaining. It was originally purchased for $91,000 and has been depreciated by the straight-line method.

The old harvester can be sold for $22,600 today.
The new harvester will be depreciated by the straight-line method over its 10-year life.
The corporate tax rate is 21 percent.
The firm’s required rate of return is 14 percent.

The initial investment, the proceeds from selling the old harvester, and any resulting tax effects occur immediately.

All other cash flows occur at year-end.

The market value of each harvester at the end of its economic life is zero.

  

Determine the break-even purchase price in terms of present value of the harvester. This break-even purchase price is the price at which the project’s NPV is zero. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

please answer this question. this is my 3rd time posting it

In: Finance

The Cornchopper Company is considering the purchase of a new harvester. The new harvester is not...

The Cornchopper Company is considering the purchase of a new harvester.

The new harvester is not expected to affect revenue, but operating expenses will be reduced by $14,600 per year for 10 years.

The old harvester is now 5 years old, with 10 years of its scheduled life remaining. It was originally purchased for $91,000 and has been depreciated by the straight-line method.

The old harvester can be sold for $22,600 today.
The new harvester will be depreciated by the straight-line method over its 10-year life.
The corporate tax rate is 21 percent.
The firm’s required rate of return is 14 percent.

The initial investment, the proceeds from selling the old harvester, and any resulting tax effects occur immediately.

All other cash flows occur at year-end.

The market value of each harvester at the end of its economic life is zero.

  

Determine the break-even purchase price in terms of present value of the harvester. This break-even purchase price is the price at which the project’s NPV is zero. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NOTE*** answer is not 91309.2 or 109154.41 or 110898.7

In: Finance

The Cornchopper Company is considering the purchase of a new harvester. The new harvester is not...

The Cornchopper Company is considering the purchase of a new harvester.

The new harvester is not expected to affect revenue, but operating expenses will be reduced by $14,600 per year for 10 years.

The old harvester is now 5 years old, with 10 years of its scheduled life remaining. It was originally purchased for $91,000 and has been depreciated by the straight-line method.

The old harvester can be sold for $22,600 today.
The new harvester will be depreciated by the straight-line method over its 10-year life.
The corporate tax rate is 21 percent.
The firm’s required rate of return is 14 percent.

The initial investment, the proceeds from selling the old harvester, and any resulting tax effects occur immediately.

All other cash flows occur at year-end.

The market value of each harvester at the end of its economic life is zero.

  

Determine the break-even purchase price in terms of present value of the harvester. This break-even purchase price is the price at which the project’s NPV is zero. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

NOTE*** answer is not 91309.2 or 109154.41 or 110898.7 or 119875.42

Someone please get this question right only if you know you can, try to use excel or somthing

In: Finance

Imagine that you are the new ruler of a new country. This can be a country...

Imagine that you are the new ruler of a new country. This can be a country on Earth, or in a fictional fantasy location. There are no rules or laws in your country at the current time. As the ruler, you are to create a set of laws and values that your people will follow that will demonstrate and foster gender equality. This will help lay the foundation for your great leadership and rule, as you will be remembered throughout the ages as The First of the Wise! In your initial post, introduce yourself as the ruler of your country. Describe your country, your people, and the set of laws you’re developing to address gender equality. Use ethics of care as one of the driving frameworks of your laws. Bring in at least one additional ethical theory to suit your people and your style of rule. Regardless of which additional theories you choose, keep your goal in mind: how will you ensure there is no gender discrimination?

In: Psychology

The Cornchopper Company is considering the purchase of a new harvester. The new harvester is not...

The Cornchopper Company is considering the purchase of a new harvester.

The new harvester is not expected to affect revenue, but operating expenses will be reduced by $13,200 per year for 10 years.

The old harvester is now 5 years old, with 10 years of its scheduled life remaining. It was originally purchased for $68,000 and has been depreciated by the straight-line method.

The old harvester can be sold for $21,200 today.
The new harvester will be depreciated by the straight-line method over its 10-year life.
The corporate tax rate is 22 percent.
The firm’s required rate of return is 13 percent.

The initial investment, the proceeds from selling the old harvester, and any resulting tax effects occur immediately.

All other cash flows occur at year-end.

The market value of each harvester at the end of its economic life is zero.

  

Determine the break-even purchase price in terms of present value of the harvester. This break-even purchase price is the price at which the project’s NPV is zero.

In: Finance

CASE STUDY 2 The Wedding Tony and Peggy Sue graduated from a university in Texas last...

CASE STUDY 2

The Wedding

Tony and Peggy Sue graduated from a university in Texas last May. She received a degree in elementary education, and he graduated from the culinary school. They both now work in the Dallas area. Peggy Sue is a teacher, and Tony is a chef at a resort hotel restaurant.

It is Christmas Day and Tony asks Peggy Sue to marry him. She excitedly accepts. They set a wedding date of June 30.

Tony is from New York City. He is the only son of “Big Tony" and Carmella. He is known as “Little Tony" to his family. He has three younger sisters, none of whom are yet married. The family owns a restaurant called Big Tony's, and all four children have worked in the restaurant since they were young. They have a large extended family with many relatives, most of whom live in New York City. They also have many friends in the neighborhood.

Peggy Sue is from Cornfield, Nebraska. She is the youngest of four sisters. She and her sisters worked on the family farm when they were young. Her father passed away several years ago. Her mother, Mildred, now lives alone in the family farmhouse and leases the farmland to a neighboring farmer. Peggy Sue's sisters all married local men and all live in Cornfield. All of their weddings were small (about 50 people), simple, and pretty much the same. Mildred has the wed- ding plans down to almost a standard operating procedure–9:00 A.M. ceremony at the small church, followed by a buffet brunch in the church hall, and that is about it. They really could not afford much more elaborate weddings because the income from the farm had been pretty meager. Peggy Sue's sisters did not go to college, and she had to take out loans to pay for her college expenses.

Tony and Peggy Sue decide to call home and announce the good news about their engagement and the forthcoming wedding.

Tony calls home and tells his mom, Carmella, the news. She replies, "That's great, honey! I've been waiting for this day. I can't believe my little baby is getting married. I'm so excited. We're going to have the biggest, best wedding ever. All our friends and family will come to celebrate. We'll probably have 300 people. And, of course, we'll have the reception at our restaurant; the banquet room should be big enough. I'll tell your cousin Vinnie that you want him to be best man. You grew up together, although you haven't seen much of each other since you went off to college in Texas. I'll call Aunt Lucy as soon as we're done talking and tell her that we want her little Maria and Teresa to be flower girls and little Nicky to be ring bearer. And, oh, I almost forgot the most important thing, your sisters, they'll all be bridesmaids. I already know what color their gowns will be-a decp rose; they'll be gorgeous. And sweetie, I didn't ask your papa yet, but I know he'll agree with me-on Monday, I'm going to call my friend Francine, the travel agent, and get two tickets for you for a two-week honeymoon in Italy. You've never been there, and you must go. It will be a gift from your papa and me. And tell Peggy Lee or Peggy Susie or whatever congratulations. We are so happy for both of you. It's your wedding, and I don't want to interfere. I'll just be here to help. You know what I'm saying. So, my little Tony, whatever you want me to do, you just tell me. And one more thing, I'll see Father Frank after Mass on Sun- day and tell him to mark his calendar already for a two o'clock ceremony on June 30. Goodbye, my big boy. I'll tell Papa you called. And I can't wait to start telling everybody to get ready to party on June 30."

Peggy Sue also calls her mom to tell her the news about the upcoming wed- ding. Mildred responds, “That's wonderful, dear. I'm glad you're finally getting married. You waited so long with going off to college and everything. I'il start getting everything ready. I know how to do this in my sleep by now. Tīl mention it to Reverend Johnson after Sunday service. I'll tell your sisters to expect to be bridesmaids again in keeping with the family tradition. I guess Holley will be the matron of honor; it's her turn. By the way, she's expecting her third child probably right around the same time as your wedding, but I don't think that will matter. Well, I guess pretty soon you'll be having babies of your own, like all your sisters. I'm glad you are finally settling down. You should really be thinking about moving back home, now that you are done with college. I saw Emma Miller, your second-grade teacher, at grocery store the other day. She told me she is retiring. I told her you would be excited to hear that and probably want to apply for her job."

"She said she didn't think they would have too many people applying so you would have a good chance. You could move in with me. The house is so big and lonely. There is plenty of room, and I can help you watch your babies. And your boyfriend, Tony—isn't he a cook or something? I'm sure he could probably get a job at the diner in town. Oh dear, I'm so happy. I've been praying that you would come back ever since you left. I'll tell all your sisters the news when they all come over for family dinner tonight. It won't be long before we're all together again. Goodbye, my dear, and you be careful in that big city."

Tony and Peggy Sue start discussing their wedding. They decide they want a big wedding—with their families and friends, including a lot of their college friends. They want an outdoor ceremony and outdoor reception, including plenty of food, music, and dancing into the night. They are not sure how much it will cost, though, and realize Peggy Sue's mother cannot afford to pay for the wedding, so they will have to pay for it themselves. Both Tony and Peggy Sue have college loans to pay back, but they hope that the money gifts they get from the wedding guests will be enough to pay for the wedding expenses and maybe have some left over for a honeymoon.

It is now New Year's Day, and Tony and Peggy Sue decide to sit down and start laying out the detailed plan of all the things they need to do to get ready for their wedding

CASE QUESTIONS

1. Develop an estimated duration for each activity.

2. Using a project start time of 0 (or January 1) and a required project completion time of 180 days (or June 30), calculate the ES, EF, LS, and LF times and TS for each activity. If your calculations result in a project schedule with negative TS, revise the project scope, activity estimated durations, and/or sequence or dependent relationships among activities to arrive at an acceptable baseline schedule for completing the project within 180 days (or by June 30). Describe the revisions you made.

3. Determine the critical path, and identify the activities that make up the critical path.

4. Produce a bar chart (Gantt chart) based on the ES and EF times from the schedule in item 2.

In: Operations Management

This is for an ethics class. Include in the document and presentation the utilitarian ethical philosophy...

This is for an ethics class.

Include in the document and presentation the utilitarian ethical philosophy of John Stuart Mill and one other ethical philosopher of your choosing, and use both of those philosophies to bolster your decision or explain why they are not appropriate for this decision.

Make sure you understand the players. There are only 3 people waiting for the organ, not 4. Dr. Doe is not one of them.

Scenario:

Ok, Lead Surgeon, it is time to do what you do best! There is a lot at stake. The decision must be made almost immediately. Like all actions, you will need to write your decision into medical documentation before you begin. Yes, that means YOU! In the limited time before you would begin surgery, you need to consider the cases; the technical issues involved also, and write a Memorandum for the Record to document what decision you made and what considerations you included in your process. This will be on the record, so it needs to be thorough in case it needs to justify your actions at a later date.

Role

You are the Lead Surgeon in a major hospital, and by virtue of your seniority you are also the key decision maker for transplant cases. Right now you have three people who are waiting and hoping for a suitable heart to become available. Your cell phone rings suddenly, and you are notified that a heart has become available-meaning that you need to make a quick yet sound decision about which patient will receive the heart and then schedule surgery for today.

Players:

Jerry

Male, 55 year old family man, mid-level manage

1) Jerry, a father of 3 children and at the age of 55, is in the Ward awaiting a suitable heart for transplanting. His wife Joanie is a stay at home mother with no education beyond high school and no career. Jerry is the middle level manager at a carpet distributing business and 5 year short of his retirement eligibility. Jerry and Joanie have three teenage children aged 14, 16, and 19. The 19 year old is a sophomore at college; the 14 year old is mildly autistic, and the 16 year old is an astronaut wannabe. If Jerry gets the heart, his chances of living another 10-15 years are very high. His heart is damaged due to the use of steroids in his early 20s when he was involved with bodybuilding before the dangers of steroid use were fully known.

2)

Lisa

Female, 12 year old lifelong health issues

Lisa is one of those precocious girls - a doll-like girl at the edge of becoming a teenager. She reads voraciously and yet likes the activities of a younger girl playing with her Barbie Doll. She has suffered health issues all her life due to various viral infections and a lupus-like immune deficiency. Her heart was damaged during a nasty bout with pneumonia last year and actually stopped for a brief period. Her mother knew to begin CPR on her or she would have died there. Even with a transplant, her chances of surviving into her 20s are not good. She is the only child in the family, and they cannot bear more children. Her parents will do anything for her, and they have offered to donate $2 million to the hospital's construction of specialized facilities if she can get a heart soon enough. Her father is also a noted oncologist working in the same hospital but in a different department.

Dr. Doe

Male, 35 year old Lisa's Dad, the oncologist

Dr. Jonathan Doe is Lisa's father. He has offered the hospital $2 Million Dollars in exchange that his daughter gets the heart transplant. He is an up-and-coming oncologist in the same hospital. He is loyal and totally committed to Lisa; while not obnoxious and pushy, his presence is keenly felt around the professional community in the Hospital and there is a need for his $2 Million.

3)

Ozzy

Male, 38 year old homeless drug abuser

Ozzy is a single 38 year old man with no family. He has lived homeless and in shelters for at least a decade. He was brought to the Hospital through the work of a local charity that assists such men with no assets or insurance. His heart condition is due to continued abuse and overdosing of crack cocaine, and without a transplant he will not live out the month. In recent months, has become involved with troubled teens at a local homework and tutoring hangout, and he has provided the wisdom and insight that only an abuser can know about where life can go. He has signed a contract with the same charity that, if he gets the transplant, he will continue working at the after-school homework hangout as a counselor-mentor for at least one year after the transplant. With the transplant and successful staying off the drugs, he could live another 10 years - maybe more. Recidivism is a severe risk with his history of abuse, and if he returns to using crack he would quickly damage the new heart and die within months.

I need

One paragraph on who gets the organ and why

One paragraph on how utilitarian thinking helped or did not help in the decision

One paragraph on how one other theory did or did not help in the decision.

In: Psychology

Evaluate the capital budgeting project using the traditional Net Present Value (NPV) approach and the Internal...

Evaluate the capital budgeting project using the traditional Net Present Value (NPV) approach and the Internal Rate of Return (IRR) criterion and present findings.

Find if this new proposal will turn out to be a good investment for his company.

Capital budgeting and investment proposal – a new product line of branded shirts that the committee was considering for launch. What would be the basis for calculating the after-tax operating cash flows for the capital project? How would you arrive at the depreciation and working capital requirements for computing the NPV? What would be the basis for calculating the terminal year cash flows?

Indian Retail Market The Indian retail market is at the cusp of a sweet spot driven by strong GDP (Gross Domestic Product) growth, benign inflation, and rising per capita income and purchasing power of consumers. Currently, the retail industry accounts for more than ten percent of the Indian Gross Domestic Product and approximately eight percent of employment. The industry is expected to nearly double, from US$ 600 billion in 2015 to US$ 1 trillion, by 2020 driven by income growth, urbanization, and attitudinal shifts (Indian Terrain Annual Report, 2015–16). It has been estimated that, by 2030, the Indian apparel market, in particular, is expected to grow at a CAGR (compounded annual growth rate) of approximately 10–12%, backed by increasing affordability on account of an increase in disposable incomes, increase in aspirations, and a shift from unbranded to branded products by the burgeoning middle class. This trend is likely to be further accentuated by the rise of e-commerce companies that enable shopping from anywhere, thereby leading to increased penetration in small cities and towns (Indian Terrain Annual Report, 2015–16).

Company Background: Case

Bhatia Textiles is a small, privately-owned clothing company based in New Delhi, India. It was founded in 1995 by Harish Bhatia, a retired executive. Since then, the company had grown steadily by catering to middle to low income consumers in the Delhi-National Capital Region (NCR). The company recorded stellar growth of 50% in its sales during the last financial year of 2015–16. With a healthy operating margin ratio and low leverage levels, the company had been able to grow its profits at a CAGR of 25% during the last 10 years. With a good brand name and healthy financial metrics, the company was now looking to expand its footprint to new product lines catering to middle to high income customers. Project Investment Proposal Details The project is estimated to be of 10 years duration. It involves setting up new machinery with an estimated cost of as much as INR 500 million, including installation. This amount could be depreciated using the straight-line method (SLM) over a period of 10 years with a resale value of INR 15 million. The project would require an initial working capital of INR 20 million with cumulative investment in net working capital to be maintained at 10% of each year’s projected revenue. With the planned new capacity, the company would be able to produce 240,000 pieces of shirts each year for the next 10 years. In terms of pricing, each shirt can initially be sold at INR 1,300 apiece, which takes into account the target segment and competitor pricing.

The project proposal incorporates an annual increase of 3% in the price of the shirt to compensate for the inflationary impact. With regards to the raw material costs and other expenses, the project estimated the following details: • Raw material cost for manufacturing shirts at INR 400 per shirt, slated to rise by 5% per annum on account of inflation. • Other direct manufacturing costs at INR 125 per shirt with an annual increase of 5% per annum on account of inflation. • Selling, general, and administrative expenses (including employee expenses) at INR 35 million per annum, expected to increase by 10% each year. • Depreciation expense on the basis of SLM. • Tax rate was assumed to be 25%. Funding For funding of the expansion project, the promoters agreed to infuse 50% in the form of equity with the rest (50%) being financed from issue of new debt. Based on the current credit position and market scenario, new debt can be raised by the company at 12% per annum. Cost of equity was assumed to be 15%. The requisite discounting rate or weighted average cost of capital (WACC) for NPV and IRR calculations can now be calculated with the help of the above assumptions.

Although the project proposal estimates maximum annual production of 240,000 shirts, find the capital budgeting analysis under two demand scenarios: Optimistic and Expected. The likely annual demand estimated under each scenario is as follows:

Scenario Annual demand

Optimistic 240,000 Shirts

Expected 200,000 Shirts

Question 1

On the basis of the financial information given in the case, calculate the after-tax operating cash flows, NPV, and IRR under the Optimistic and Expected scenarios. Clearly specify the calculations required for the same.

In: Finance

Question: CASE STUDY 2: CALEDONIA PLAIN CHOCOLATE Introduction In late 1997 the marketing audit conducted by...

Question:

CASE STUDY 2: CALEDONIA PLAIN CHOCOLATE

Introduction

In late 1997 the marketing audit conducted by Booker-Greer Limited's confectionary division highlighted a number of weaknesses in their marketing position. The two main weaknesses were:

1.    Their strength in milk chocolate lines was matched by poor performance in plain chocolate. This situation was made more serious because of the growing importance of plain chocolate in the market.

2.    In a number of parts in the UK their market share was significantly worse than in the country as a whole. Among these Scotland stood out as particularly important because of its high per capita chocolate consumption and the unusually high sales of plain chocolate in that area.

Competitive history

Both these factors could be explained in part by a series of decisions made in the past. In the early 1950s the company had been the first major confectionary manufacturer to spot the trend away from toffees and boiled sweets.

For over thirty years the firm had sustained it position as one of the three largest confectionery manufacturers through a small number of major milk chocolate count lines backed by heavy advertising an extensive distribution. These traditional favorites had been supplemented by a number of new product launches. During the late 1980s and early 1990s a very high rate of new brand introduction by themselves and their competitors had occurred. Overall, Booker-Greer had come out of this period worse off than before. Unlike their competitors they had not established a major large-volume count line on the market. (Although the two competitors had established only one new major product each, the long-term contribution of these was likely to be substantiated.)

The current situation

Faced with the ever-escalating cost of introducing a new brand, the new product group embarked on a wide-ranging study of alternative strategies. In the light of the weaknesses in plain chocolate and in Scotland, it was recommended that the firm explore the scope for a brand geared to the specific needs of the Scottish market. It was hoped that this brand would take up some of the spare capacity then existing in the firm's manufacturing plant in Edinburgh. The large vote in favor of Scottish devolution, also, seemed to suggest that a distinct opportunity existed for a Scottish brand.

In the past the firm has always worked very closely with its existing advertising agencies on new product development projects. In this case it was decided that extra insight into the market in Scotland could be achieved through a local Scottish agency. Four Scottish agencies, two based in Glasgow and two in Edinburgh, were asked to compete for the business, as was the Edinburgh office of one of their London agencies.

On the competing agencies Alexander Gooch and Co. stood out as most committed to a distinctly Scottish offering. They were briefed to develop and research a new brand for possible launch in late 1998 or early 1999. Clear volume targets were set, amounting to 25 per cent of plain chocolate count lines (10 per cent total count line sales) in Scotland. This would minimize the impact on current sales of Booker-Greer products while biting into their competitors' market.

A number of names, packs and related advertising themes emerged, notable 'Stuart', 'Saltire', 'Caledonia' and 'Stirling' brand chocolates. These were researched in conjunction with a brand name and proposition, ' Silhouette', that had performed reasonably well in national research studies among both adults and children.

The research indicated considerable interest in the concept of a Scottish brand. The Caledonia brand and campaign (emphasizing Scottish links, made in Scotland etc.) did consistently well, out-performing all other propositions, including Silhouette. Unfortunately, two major problems emerged:

1.    Consumer preferences were for a milk chocolate Scottish brand.

2.    The results, although promising, suggested a market of less than 18 per cent of the plain chocolate market (for the plain brand) and 9 per cent of total chocolate count sales (if a milk chocolate brand was launched).

The results created a major debate within the firm about further actions. The brand group and advertising agency favoured progressing with the launch, initially with the plain brand but with a view to introducing a milk brand later. Both pointed to the overall appeal of the basic concept and suggested that the results might easily be an understatement, given the newness of the proposition. They also pointed to strong nationalistic feeling in Scotland, and the brand manager in charge saw increased pressure of greater economic, social and cultural autonomy as a possible platform for long-term strength.

The firm's research department recommended abandonment. In this they were supported by the corporate planning department, who pointed out the harshly reality the offering had failed to meet its targets at a time when national sentiment was high. Also, any milk chocolate derivative would draw much of its sales from their current offering.

After considering these arguments the marketing director decided to abandon this initiative.

Tasks

1.    Examine the thinking which led to this project.

2.    Review its development.

3.    Explore the final argument.

4.    Evaluate the final decision.

In: Finance

You are on the market for a new car. You want to check whether there is...

You are on the market for a new car. You want to check whether there is a significant difference between the fuel economy of mid-size domestic cars and mid-size import cars. You sample 24 domestic car makes and find an average fuel economy of 30.169 MPG with a standard deviation of 4.9556 MPG. For imports, you sample 14 cars and find an average MPG of 36.638 MPG with a standard deviation of 7.6187. Construct a 90% confidence interval for the difference between the true average fuel economies in question. Assume the difference will represent (domestic - import). You can also assume that the standard deviations are statistically the same between the two populations.

2.

A pharmaceutical company is testing a new drug to increase memorization ability. It takes a sample of individuals and splits them randomly into two groups. After the drug regimen is completed, all members of the study are given a test for memorization ability with higher scores representing a better ability to memorize. Those 20 participants on the drug had an average test score of 28.062 (SD = 4.642) while those 24 participants not on the drug had an average score of 46.056 (SD = 6.934). You use this information to create a 95% confidence interval for the difference in average test score. What is the margin of error? Assume the population standard deviations are equal.

3. A professor at a university wants to estimate the average number of hours of sleep students get during exam week. The professor wants to find a sample mean that is within 1.117 hours of the true average for all college students at the university with 99% confidence. If the professor knows the standard deviation of the sleep times for all college students is 4.067, what sample size will need to be taken?

4. The owner of a local golf course wants to determine the average age of the golfers that play on the course in relation to the average age in the area. According to the most recent census, the town has an average age of 48.89. In a random sample of 24 golfers that visited his course, the sample mean was 31.37 and the standard deviation was 9.976. Using this information, the owner calculated the confidence interval of (25.65, 37.09) with a confidence level of 99%. Which of the following statements is the best conclusion?

5. You own a small storefront retail business and are interested in determining the average amount of money a typical customer spends per visit to your store. You take a random sample over the course of a month for 42 customers and find that the average dollar amount spent per transaction per customer is $89.687 with a standard deviation of $10.9431. When creating a 99% confidence interval for the true average dollar amount spend per customer, what is the margin of error?

In: Statistics and Probability