1          A renewable energy electricity supply technology has the following characteristics:

1. If the owner can sell the electricity at 30 c/kWh,
2. 1. calculate the lifecycle cost of the technology over an assessment period of 25 years at a real discount rate of 5%                                
   2. Calculate the average unit cost of the power in present value terms (in cents/kWh) supplied by the technology over its lifetime at this real discount rate.
3. 1. What is the Levelised Cost of Electricity (LCOE) (in cents/kWh) for this case, with a salvage value of zero, and calculated using method 1 (that is, finding the constant price to charge for the electricity that gives a zero NPV at a real discount rate of 5% over 25 years)?
   2. Calculate this LCOE (add annualised capital cost to the annual operating cost, and divide by annual electricity supplied), and show that this gives the same value as method 1. Give values for the annualised capital cost and annual operating cost in your answer. (The annualised capital cost formula is the inverse of the Uniform Series Present Worth Factor formula.)

4. Using the figures in the table above as a baseline, work out an expression for Present Worth with real discount rate, assessment period, salvage value, and electricity price as independent variables. Then changing just one variable at a time (other things being kept equal) plot graphs of Present Worth versus each of these variables. Use a range of assessment periods up to the lifetime of the technology. Explore the effects of both positive and negative salvage values.

Note: to simplify the calculation of present worth, for assessment periods less than the lifetime, neglect the residual value of the technology, and assume salvage values are only incurred at the end of the lifetime of the technology.

I would appreciate if you can solve any part of this question.

Problem 16-07
Cost of Trade Credit

Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume that payment is made either on the due date or on the discount date. Assume 365 days in year for your calculations. Do not round intermediate calculations.

1. 1/15, net 25. Round your answer to two decimal places.
   %
   
2. 2/10, net 55. Round your answer to two decimal places.
   %
   
3. 3/10, net 55. Round your answer to two decimal places.
   %
   
4. 2/10, net 50. Round your answer to two decimal places.
   %
   
5. 2/15, net 40. Round your answer to two decimal places.
   %

Complete the following: Depreciation expense per year, accumulated depreciation year, and net remaining undepreciated cost.

Assumptions are as follows:

Cost to be depreciated: 20,000 Estimated useful life of equipment: 10 years Year

Maria consumes only two goods: pens and notebooks. Currently, pens cost $1 each and notebooks cost $3 each. Maria’s income is $15. The tables below show the total utility Maria receives from consuming various quantities of each of the goods. calculate the optimal consumption bundle for Maria. (Note: for full credit you must provide the correct quantities of pens and notebooks AND fill in as much of Table 3 as was necessary to arrive at your answer.)

#of Notebooks Total Utility # of Pens Total Utility

0    0 0 0

1    75 1 40

2    135 2 60

3      185 3 75   

4 230     4 87

5 . 270 5 97

6 300 6 105

7 320 7 111

Cellphone Prices:

Analyzing Cost and Revenue

INTRODUCTION

Cost, revenue and profit functions may take parabolic forms. In many business and economics applications, our most important goal is to maximize revenue, profit or minimize cost. We may be able to find the price or the quantity of goods and services that maximizes profit, revenue and minimizes cost by using the quadratic formula and vertex formula.

The goal of this project is to enhance the understanding quadratic functions and how to find the maximum/minimum.

Question 1: If you have the chance to start a business, what business would you choose? Why?

Question 2: Starting and running a business requires time, effort, hard work and in particular money. What kind of costs do you expect to have to pay in order to start and run your business? Please list them and explain why you need them.

Question 3: Some costs are fixed, which are called fixed costs, such as equipments and buildings. Some cost are variable, which are called variable costs, such as labor and material. Please explain what costs in the Question 2 are fixed costs, and what are variable costs.

In general, the total cost consists of variable costs and fixed costs.

Question 4: In order to keep your business running, you need to make revenue. Revenue is the money that comes into the business from customers. Suppose you know the number of products your business sold and the price you sold them at, how can you calculate the revenue? What strategies could you use in order to increase your business’ revenue?

The revenue of a business may go up and down depending on many factors. For example a business that sells ice cream will likely make more money during hot summer months. The profit of your business is the difference of the revenue and the cost. That is,

Profit = Revenue - Cost.

If the profit is the positive, your business makes money. If the profit is negative, your business unfortunately makes a loss. If the profit is zero, that is the revenue is equal to the cost, it is called the break-even point.  

Suppose that you were the CEO of a giant high technology corporation, Strawberry, Inc, manufacturer of the Strawberry Phone.

Question 5:

This month, you have estimated the demand for the Strawberry Phone to be:

Q = 220 - 4P

where Q is the quantity demanded, and P is the price of a Strawberry Phone.

The cost of producing a phone is constant at $12, which is called marginal cost. The fixed cost that includes the cost spent on the factory, the equipment, among others is $1525. As a result, you have a linear cost function,

C = FC + (MC Q),

Where C is the total cost, FC is the fixed cost, and the MC is the marginal cost, and Q is the quantity as before.

Answer the following questions.

1. What is the price that maximizes the corporation’s profit? (Hint: Profit = Revenue - Cost)

2. At what price does the corporation break even?

Question 6: From the two questions above, create a strategy to lower your cost and maximize your profit for the business you chose in question 1.

Essay: Write an essay that discusses the answers to the questions above include a detailed description of your business ideas and how it is possible to use maximization of quadratic functions to find the maximum profit.

QUESTION 38

1. The ITEM table contains these columns:
   COST NUBMER(7,2)
   RETAIL NUMBER(7,2)
   The RETAIL and COST columns must have a value that is greater than zero.
   Evaluate these two SQL Statements:
   1. SELECT retail – cost * 1.25 * .10
   FROM item;
   2. SELECT (retail – (cost *1.25 )*.10)
   FROM item;
   What will be the results?

   		Statement 1 will return a low value than statement 2.
   		Statement 1 and statement 2 will return the same values.
   		Statement 1 will return a higher value than statement 2.
   		Only one of the statements will execute.

2.5 points   

QUESTION 39

1. Using a second SELECT query in the same overall query is a

   		subquery
   		join query
   		cross join
   		aggregate function

2.5 points   

QUESTION 40

1. select SAL from EMP where SAL between 1000 and 10000; results in (table rows are 1 to 10099)

   		rows 1001 to 9999 returned
   		rows 1 to 10001 returned
   		rows 1001 to 10000 returned
   		rows 1000 to 10000 returned

ACME manufacturing is a low-cost producer of a single, commodity product: RGL-01. Standard overhead cost information for one unit of this product is presented below:

Required

3. What is the total overhead variance for the year when the overhead application rate per machine hour is determined under each of the following options: (a) budgeted output, (b) normal capacity, and (c) practical capacity? Indicate whether each variance is favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

5. What is the Overhead Efficiency Variance (= Variable Overhead Efficiency Variance) for the year when the overhead application rate per machine hour is determined under each of the following options: (a) budgeted output, (b) normal capacity, and (c) practical capacity? Indicate whether each variance is favorable (F) or unfavorable (U).

7. What is the total Overhead Spending Variance for the year under each of the following assumptions regarding the denominator activity level used to set the overhead application rate for the year:

a) budgeted output, (b) normal capacity, and (c) practical capacity? State whether each variance is favorable (F) or unfavorable (U).

8. Break down the Total Overhead Spending Variance (as determined in requirement 7) into: (a) a Fixed Overhead Spending Variance, and

(b) a Variable Overhead Spending Variance. State whether each variance is favorable (F) or unfavorable (U).

The GFA Company, originally established 16 years ago to make football, is now a leading
producer of tennis balls, baseballs, footballs, and golf balls. Nine years ago, the company
introduced “High Flite,” its first line of high-performance golf balls. GFA management has
sought opportunities in whatever businesses seem to have some potential for cash flow. Recently
Mr. Dawadawa, vice president of the GFA Company, identified another segment of the sports
ball market that looked promising and that he felt was not adequately served by larger
manufacturers.
As a result, the GFA Company investigated the marketing potential of brightly coloured bowling
balls. GFA sent a questionnaire to consumers in three markets: Accra, Kumasi, and Koforidua.
The results of the three questionnaires were much better than expected and supported the
conclusion that the brightly coloured bowling balls could achieve a 10 to 15 percent share of the
market. Of course, some people at GFA complained about the cost of test marketing, which was
GH¢ 250,000. Also, the feasibility test carried out by analysts to assess the viability of the
project costs GH¢ 100,000. In any case, the GFA Company is now considering investing in a
machine to produce bowling balls. The bowling balls would be manufactured in a building
owned by the firm and located near Madina. This vacant building and the land can be sold for
GH¢ 150,000 after taxes.
Working with his staff, Dawadawa is preparing an analysis of the proposed new product. He
summarizes his assumptions as follows: The cost of the bowling ball machine is GH¢100,000
and it is expected to last five years. At the end of five years, the machine will be sold at a price
estimated to be GH¢ 30,000. The machine is depreciated on straight-line basis. The company is
exempt from capital gains tax. Production by year during the five-year life of the machine is
expected to be as follows: 5,000 units, 8,000 units, 12,000 units, 10,000 units, and 6,000 units.
The price of bowling balls in the first year will be GH¢20. The bowling ball market is highly
competitive, so Dawadawa believes that the price of bowling balls will increase at only 2 percent
per year, as compared to the anticipated general inflation rate of 5 percent.
Conversely, the plastic used to produce bowling balls is rapidly becoming more expensive.
Because of this, production cash outflows are expected to grow at 10 percent per year. First-year
production costs will be GH¢10 per unit. Also, „Soft Flite‟ a substitute product, is expected to
have a drop in its sales by 1000 units per annum. The selling price per unit of existing products is
GH¢5 while the variable cost is GH¢ 4. This has no tax implications for the new product.
Dawadawa has determined, based on GFA‟s taxable income, that the appropriate incremental
corporate tax rate in the bowling ball project is 34 percent.