B&B Technologies is considering expanding its operations to include production and sales of high capacity storage devices. The assistant to the CFO has collected a lot of information which is described below. Unfortunately, some of the information may be of questionable relevance, but that is for you to decide. You have asked to present a net present value based analysis to help management decide on the desirability of getting into the storage device business.

The company owns a vacant building near its current manufacturing facility; this building could be used for the expansion, or it could be leased to an interested customer and generate a lease revenue of $250,000, starting this year. The firm could increase the lease charge by 5% every year. The company has some unused equipment that has a book value of $40,000 zero and a market value of $30,000. This equipment could either be sold or be modified to produce storage devices; the modification would cost $10,000. The old equipment and modification costs would be depreciated straight-line over five years. Producing storage devices would also require the purchase of new equipment costing $900,000. For purposes of depreciation, the new equipment would be in the 7-year MACRS class. This equipment would have a useful life of six years, at the end of which it would have a scrap value of 10% of the purchase price.

Producing storage devices would require an ongoing investment in working capital. Net working capital is expected to be 10% of expected sales for the coming year and would vary with sales, but remain at 10% of expected sales for the coming year. All working capital would be recovered at the end of the six-year life of the investment.

The production facility is expected to generate sales revenues of $1,000,000 in the first year; sales are expected to increase at 10% p.a. for three years and then decline by 5% p.a. over the last two years of the project. Operating costs are expected to be 40% of sales. The firm’s effective tax rate of 20% is expected to remain unchanged over the planning period, and the appropriate required rate of return for this investment is 8%.

Question

1. Estimate the net present value and the internal rate of return for this investment.

2. Now suppose the following changes occur: (i) Sales in the first year turn out to be $900,000, (ii) the CGS to sales ratio is 45%, (iii) the NWC to sales ratio is 15%, (iv) the scrap value of the new equipment in year 6 is 5% of the original cost, and (v) the required rate of return is 10%. What is the net present value and the internal rate of return with all of the above changes? Should B&B Technologies get into the storage device business?

B&B Technologies is considering expanding its operations to include production and sales of high capacity storage devices. The assistant to the CFO has collected a lot of information which is described below. Unfortunately, some of the information may be of questionable relevance, but that is for you to decide. You have asked to present a net present value based analysis to help management decide on the desirability of getting into the storage device business.

The company owns a vacant building near its current manufacturing facility; this building could be used for the expansion, or it could be leased to an interested customer and generate a lease revenue of $250,000, starting this year. The firm could increase the lease charge by 5% every year. The company has some unused equipment that has a book value of $40,000 and a market value of $30,000. This equipment could either be sold or be modified to produce storage devices; the modification would cost $10,000. The old equipment and modification costs would be depreciated straight-line over five years. Producing storage devices would also require the purchase of new equipment costing $900,000. For purposes of depreciation, the new equipment would be in the 7-year MACRS class. This equipment would have a useful life of six years, at the end of which it would have a scrap value of 10% of the purchase price.

Producing storage devices would require an ongoing investment in working capital. Net working capital is expected to be 10% of expected sales for the coming year and would vary with sales, but remain at 10% of expected sales for the coming year. All working capital would be recovered at the end of the six-year life of the investment. The production facility is expected to generate sales revenues of $1,000,000 in the first year; sales are expected to increase at 10% p.a. for three years and then decline by 5% p.a. over the last two years of the project. Operating costs are expected to be 40% of sales. The firm’s effective tax rate of 20% is expected to remain unchanged over the planning period, and the appropriate required rate of return for this investment is 8%.

Tasks:

1. Estimate the net present value and the internal rate of return for this investment.

2. Now suppose the following changes occur: (i) Sales in the first year turn out to be $900,000, (ii) the CGS to sales ratio is 45%, (iii) the NWC to sales ratio is 15%, (iv) the scrap value of the new equipment in year 6 is 5% of the original cost, and (v) the required rate of return is 10%. What is the net present value and the internal rate of return with all of the above changes? Should B&B Technologies get into the storage device business?

a) If the potential is taken as zero at an infinite distance from the charges, how can points near the charges also have zero potential?

b) Explain why equipotentials and E field lines must always be perpendicular.

c) Where are the most negative potentials located in the space surrounding several point charges of opposite signs?

d) At a given point in an electric field, does the E vector point toward higher or lower potential?

e) At a given point in an electric field, does the E vector point toward higher or lower potential energy for a positive charge at that point? Explain why.

f) At a given point in an electric field, does the E vector point toward higher or lower potential energy for a negative charge at that point? Explain why.

g) If a positive charge is released from rest in an electric field, will it move toward lower or higher potentials? What if a negative charge is released from rest?

h) If a negative charge is placed in a closed orbit (not necessarily circular) around a single positive charge, is the potential constant everywhere on the orbit? If not, is there any energy quantity that is constant along the entire orbit?

Clayton Moore is the manager of an international money market fund managed out of London. Unlike many money funds that guarantee their investors a near? risk-free investment with variable interest? earnings, Clayton? Moore's fund is a very aggressive fund that searches out relatively high interest earnings around the? globe, but at some risk. The fund is? pound-denominated. Clayton is currently evaluating a rather interesting opportunity in Malaysia. Since the Asian Crisis of? 1997, the Malaysian government enforced a number of currency and capital restrictions to protect and preserve the value of the Malaysian ringgit. The ringgit was fixed to the U.S. dollar at RM3.80?/$ for seven years. In? 2005, the Malaysian government allowed the currency to float against several major currencies. The current spot rate today is RM 3.13481 divided by $. Local currency time deposits of? 180-day maturities are earning 8.898?% per annum. The London eurocurrency market for pounds is yielding 4.203?% per annum on similar? 180-day maturities. The current spot rate on the British pound is $ 1.5823 divided by pound?, and the? 180-day forward rate is $ 1.5563 divided by pound. The initial investment is pound1,000,000.00.

Clayton Moore is the manager of an international money market fund managed out of London. Unlike many money funds that guarantee their investors a near? risk-free investment with variable interest? earnings, Clayton? Moore's fund is a very aggressive fund that searches out relatively high interest earnings around the? globe, but at some risk. The fund is? pound-denominated. Clayton is currently evaluating a rather interesting opportunity in Malaysia. Since the Asian Crisis of? 1997, the Malaysian government enforced a number of currency and capital restrictions to protect and preserve the value of the Malaysian ringgit. The ringgit was fixed to the U.S. dollar at RM3.80?/$ for seven years. In? 2005, the Malaysian government allowed the currency to float against several major currencies. The current spot rate today is RM 3.13481 divided by $. Local currency time deposits of? 180-day maturities are earning 8.898?% per annum. The London eurocurrency market for pounds is yielding 4.203?% per annum on similar? 180-day maturities. The current spot rate on the British pound is $ 1.5823 divided by pound?, and the? 180-day forward rate is $ 1.5563 divided by pound. The initial investment is pound1,000,000.00.

Gerald Luna is a 45-year-old client with a 15-year history of type 2 diabetes mellitus and a 30-year history of alcoholism. His blood glucose is not well controlled on an oral hypoglycemic agent, and he drinks one six-pack of beer per day. Gerald works at a casino as a slot machine repairman. His wife of 25 years, Andrea, is also employed by the casino in the accounting department. Gerald and Andrea live on a reservation near the casino in a rural setting.

Gerald was involved in a car accident on the way to work. He was not restrained and was thrown from the car into the roadside brush. The crash was witnessed, and bystanders called 911. First responders arrived to find Gerald unconscious with labored breathing and a deformed right lower extremity. A witness stated that Mr. Luna just drove off the road and appeared to be asleep. No other vehicles were involved. The first responders established monitoring equipment, intubated Gerald at the scene, started intravenous fluids with 0.9% normal saline, and splinted his right lower extremity.

Evaluate the information in the case and determine the Top 3 Priority concerns or cues.

A square, 32.0- turn coil that is 11.0 cm on a side with a resistance of 0.770Ω is placed between the poles of a large electromagnet. The electromagnet produces a constant, uniform magnetic field of 0.550 T directed out of the screen. As suggested by the figure, the field drops sharply to zero at the edges of the magnet. The coil moves to the right at a constant velocity of 2.70 cm/s. A shaded, rectangular region of uniformly distributed dots signifying a magnetic field out of the screen, and a clear region to the right of the shaded region. Inside and near the middle of the shaded region is a smaller square coil moving to the right with velocity V. The coil is labeled as having N turns. What is the current ?1 through the wire coil before the coil reaches the right edge of the field? Define counterclockwise current as positive and clockwise current as negative. ?1= A What is the current ?2 through the wire coil while the coil is leaving the field? ?2= A What is the current ?3 through the wire coil after the coil leaves the field? ?3= A What is the total charge magnitude ∣Δ?∣ that flows past a given point in the coil as it leaves the field? ∣Δ?∣= C

60 Glazer Company is a small manufacturing firm with 60 employees in seven departments. When the need arises for new workers in the plant, the departmental manager interviews applicants and hires on the basis of those interviews. The manager has each new employee complete a withholding form. The manager then writes the rate of pay on the W‐4 and forwards it to payroll. When workers arrive for their shift, they pull their time cards from a holder near the door and keep the time card with them during the day to complete the start and end times of their work day. On Friday, the time cards are removed from the holder and taken to payroll by any employee who is not busy that morning. If there were any pay rate changes for the payroll period due to raises or promotions, the manager calls the payroll department to inform payroll of these rate changes. Using the rate changes and the time cards, the payroll department prepares the checks from the regular bank account of the Glazer Company. The manager of the payroll department signs the checks, and the checks are then forwarded to each department manager for distribution to employees. Required: Describe any improvements you would suggest to strengthen the payroll internal controls at Glazer.

Patient is a 10-year-old male ,good health. Felt pain in his left calf at lunchtime despite not being injured.

Ingrown hair in the location of the pain. That evening small amount of pus from the ingrown hair.

Next morning, found cellulitis on the calf and more pus. By the afternoon, the area of the cellulitis had grown significantly and the patient rushed to the medical center.

Vital signs measured, including pulse, respiration, blood pressure and temperature. All the signs were within the normal limits.

Physical examination of calf, which was red and warm to the touch but with no area of obvious fluctuance. No lymphadenopathy was observed. The physician punctured the central area of the cellulitis, near the area that the patient indicated was the ingrown hair, three times with a 20-gauge needle but no pus was drained. The patient was referred to surgery service and the surgeon gave him 2 g of ceftriaxone intramuscularly and started him on oral cephalexin. The patient returned to the medical center 48h later with obvious area of fluctuance in the centre of the cellulitis area and reported low-grade fever during the past 48 hours. It was obvious that pus is present.

3. What could be the source of the infection?