Yellow Sand Industrial has a weighted-average cost of capital of 8.44 percent and is evaluating two projects: A and B. Project A involves an initial investment of 4,262 dollars and an expected cash flow of 7,799 dollars in 2 years. Project A is considered more risky than an average-risk project at Yellow Sand Industrial, such that the appropriate discount rate for it is 1.58 percentage points different than the discount rate used for an average-risk project at Yellow Sand Industrial. The internal rate of return for project A is 35.27 percent. Project B involves an initial investment of 6,735 dollars and an expected cash flow of 11,315 dollars in 5 years. Project B is considered less risky than an average-risk project at Yellow Sand Industrial, such that the appropriate discount rate for it is 1.74 percentage points different than the discount rate used for an average-risk project at Yellow Sand Industrial. The internal rate of return for project B is 10.93 percent. What is X if X equals the NPV of project A plus the NPV of project B?

Computing and interpreting the degree of operating leverage (DOL)

It is December 31. Last year, Carter Chemical Co. had sales of $8,000,000, and it forecasts that next year’s sales will be $7,600,000. Its fixed costs have been and are expected to continue to be $4,400,000, and its variable cost ratio is 12.50%. Carter’s capital structure consists of a $13.5 million bank loan, on which it pays an interest rate of 9%, and 250,000 shares of common equity. The company’s profits are taxed at a marginal rate of 40%.

Given this data, complete the following sentences:

There are several ways to use and interpret a firm’s DOL value. Consider the following statement and indicate whether it accurately reflects the meaning or an appropriate use of a firm’s DOL value.

Assume that at a given sales level, a firm’s DOL is 2.5. This means that a 1% change in the firm’s sales will result in a corresponding 2.5% change in the firm’s EBIT.

True or False: This statement accurately describes a firm’s DOL.

True

False

Coolbrook Company has the following information available for the past year:   

   
The company’s hurdle rate is 7.01 percent.

Required:
1. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))



2. Recalculate ROI and residual income for each division for each independent situation that follows: (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))

a. Operating income increases by 11 percent.



b. Operating income decreases by 12 percent.



c. The company invests $243,000 in each division, an amount that generates $106,000 additional income per division.



d. Coolbrook changes its hurdle rate to 5.01 percent.

1.) It is December 31. Last year, Carter Chemical Co. had sales of $16,000,000, and it forecasts that next year’s sales will be $14,880,000. Its fixed costs have been and are expected to continue to be $6,400,000, and its variable cost ratio is 12.50%. Carter’s capital structure consists of a $13.5 million bank loan, on which it pays an interest rate of 9%, and 250,000 shares of common equity. The company’s profits are taxed at a marginal rate of 40%.

Given this data, complete the following sentences:

2.) There are several ways to use and interpret a firm’s DOL value. Consider the following statement and indicate whether it accurately reflects the meaning or an appropriate use of a firm’s DOL value.

At sales of $24 million, Firm X’s DOL is 1.75, and Firm C’s DOL is 6.50. Firm C exhibits a lower level of business risk than Firm X. (True / False)

Silver Sun Entertainment has a weighted-average cost of capital of 8.22 percent and is evaluating two projects: A and B. Project A involves an initial investment of 5,756 dollars and an expected cash flow of 8,519 dollars in 6 years. Project A is considered more risky than an average-risk project at Silver Sun Entertainment, such that the appropriate discount rate for it is 0.86 percentage points different than the discount rate used for an average-risk project at Silver Sun Entertainment. The internal rate of return for project A is 6.75 percent. Project B involves an initial investment of 4,760 dollars and an expected cash flow of 8,425 dollars in 5 years. Project B is considered less risky than an average-risk project at Silver Sun Entertainment, such that the appropriate discount rate for it is 1.78 percentage points different than the discount rate used for an average-risk project at Silver Sun Entertainment. The internal rate of return for project B is 12.1 percent. What is X if X equals the NPV of project A plus the NPV of project B?

Silver Sun Entertainment has a weighted-average cost of capital of 8.22 percent and is evaluating two projects: A and B. Project A involves an initial investment of 5,756 dollars and an expected cash flow of 8,519 dollars in 6 years. Project A is considered more risky than an average-risk project at Silver Sun Entertainment, such that the appropriate discount rate for it is 0.86 percentage points different than the discount rate used for an average-risk project at Silver Sun Entertainment. The internal rate of return for project A is 6.75 percent. Project B involves an initial investment of 4,760 dollars and an expected cash flow of 8,425 dollars in 5 years. Project B is considered less risky than an average-risk project at Silver Sun Entertainment, such that the appropriate discount rate for it is 1.78 percentage points different than the discount rate used for an average-risk project at Silver Sun Entertainment. The internal rate of return for project B is 12.1 percent. What is X if X equals the NPV of project A plus the NPV of project B?

Coolbrook Company has the following information available for the past year:   

   
The company’s hurdle rate is 7.76 percent.

Required:
1. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))



2. Recalculate ROI and residual income for each division for each independent situation that follows: (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))

a. Operating income increases by 9 percent.



b. Operating income decreases by 9 percent.



c. The company invests $246,000 in each division, an amount that generates $107,000 additional income per division.



d. Coolbrook changes its hurdle rate to 5.76 percent.

Coolbrook Company has the following information available for the past year:   

   
The company’s hurdle rate is 8.01 percent.

Required:
1. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))



2. Recalculate ROI and residual income for each division for each independent situation that follows: (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))

a. Operating income increases by 8 percent.



b. Operating income decreases by 9 percent.



c. The company invests $245,000 in each division, an amount that generates $118,000 additional income per division.



d. Coolbrook changes its hurdle rate to 6.01 percent.

Q1. Implementation of solar power in different applications is becoming popular and many opportunities are available for industries and other commercial establishments to adopt this technology. Impressed by this technology, a star hotel located in a remote beach of Oman is willing to use solar PV technologies for meeting 25 percentage of its daily average power requirement. It is also ready to have a battery backup system to store the entire energy obtained from solar panels. The balance power will be taken from the grid. The solar radiation may be assumed as 400 W/m2 for the region. The loads and their average working hours per day are given below.
Lights : 5 kW, 12 hours
Air conditioning systems : 4 numbers, each 30 kW, 12 hours
Refrigerator : 60 numbers, each 350 W, 10 hours
Cold Room : 12 kW, 24 hours
Kitchen equipment : 15 kW, 9 hours
Laundry equipment : 10 kW, 4 hours
Cleaning equipment : 2000 W, 8 hours
Lifts : 4 kW, 3 numbers, 5 hours
Swimming poor equipment : 6 kW, 4 hours
Water pumps : 3000 W, 2 numbers, 4 hours Fans and blowers : 4 kW, 6 hours

Based on the available data you are asked to analyze the situation and prepare a write-up to implement the PV technology for the specific application. The write-up is expected with various features like the plan for the suitable energy conversion system with all equipment, controls, storage and distribution system, a schematic diagram of the entire plan, provisions included to manage the power with the gird power, impacts of losses in various components, effective conversion of DC and AC power, specification of the battery storage system etc. Appropriate discussion is also expected to address the challenges involved in the implementation of this proposal and your valid suggestions to overcome those risks.   

You and your closest friends have decided to go to see a private screening of a movie at a local movie theater where you can be socially distant. Friends will be added to the queue after their names are input by the user. Because of current restrictions, the queue (line) for tickets can only have a capacity of 7 people.

Write a Java program using a Queue (of size 7) that will display a menu:

1) add person to line

2) remove person from line

When (1) is chosen the user will be prompted to input the friend's name. Note that you must not add another person to the queue until there is an available space for them (you will need to check if the queue is full before adding people.) If there are already 7 people in the queue the program will output that "the line is full please try again later."

When (2) is chosen the person at the head/front of the queue is removed.

After each person is added or removed from the queue, output the contents of the queue and the name of the person at the head of the queue. The program will end after the removal of a person leaves the queue empty.

MUST BE JAVA. please include menu for queue operations.