Here are the net cash flows for a project your company is considering: Year 0 = -1000 Year 1 = 250 Year 2 = 449 Year 3 = 800 Year 4 = 500 Year 5 = 500 If the payback period with interest is 3 years, for what range of interest rates is this project worth doing (start your analysis with an interest rate of 0%)? ** Kindly just don’t directly draw the table with values in it, it’ll be helpful to include explanation of how you get to fill the table . Already I posted this question earlier and noticed that someone had just randomly written someone else’s who has solved the question with no change in word format too.
In: Economics
A project requires an initial investment of $350,000 and will return $140,000 each year for six years.
|
Factors: Present Value of $1 |
Factors: Present Value of an Annuity |
||
|
(r = 10%) |
(r = 10%) |
||
|
Year 0 |
1.0000 |
||
|
Year 1 |
0.9091 |
Year 1 |
0.9091 |
|
Year 2 |
0.8264 |
Year 2 |
1.7355 |
|
Year 3 |
0.7513 |
Year 3 |
2.4869 |
|
Year 4 |
0.6830 |
Year 4 |
3.1699 |
|
Year 5 |
0.6209 |
Year 5 |
3.7908 |
|
Year 6 |
0.5645 |
Year 6 |
4.3553 |
If taxes are ignored and the required rate of return is 10%, what is the project's net present value (rounded to the nearest dollar)?
Group of answer choices
$259,742
$114,803
$340,000
$109,742
A project requires an initial investment of $350,000 and will return $140,000 each year for six years.
|
Factors: Present Value of $1 |
Factors: Present Value of an Annuity |
||
|
(r = 10%) |
(r = 10%) |
||
|
Year 0 |
1.0000 |
||
|
Year 1 |
0.9091 |
Year 1 |
0.9091 |
|
Year 2 |
0.8264 |
Year 2 |
1.7355 |
|
Year 3 |
0.7513 |
Year 3 |
2.4869 |
|
Year 4 |
0.6830 |
Year 4 |
3.1699 |
|
Year 5 |
0.6209 |
Year 5 |
3.7908 |
|
Year 6 |
0.5645 |
Year 6 |
4.3553 |
Ignoring qualitative issues and income taxes, should the company invest in this project?
Group of answer choices
No, because the net present value shows a return that is less than the company's required rate of return.
There is not enough quantitative information to answer this question.
No, because the internal rate of return cannot be calculated.
Yes, because the net present value shows a return that is above the company's required rate of return.
Clothing Products LLC manufactures shirts. The company is interested in outsourcing production to a reputable manufacturing company that can supply the shirts for $10 per unit. Clothing Products LLC produces 20,000 shirts each year. Variable production costs are $4 per unit and annual fixed costs are $160,000. If production is outsourced, all variable costs and 60 percent of annual fixed costs will be eliminated. Ignoring qualitative factors and income taxes, which is the best alternative?
Group of answer choices
Producing the shirts internally is the best option and results in $24,000 in savings compared to outsourcing production.
Outsourcing production is the best option and results in $64,000 in savings.
Producing the shirts internally is the best option and results in $64,000 in savings compared to outsourcing production.
Outsourcing production is the best option and results in $24,000 in savings.
Support Tech Inc. has two customers; Rosen and Hernandez. Rosen generates $300,000 in income after direct fixed costs are deducted, and Hernandez generates $290,000 in income after direct fixed costs are deducted. Allocated fixed costs total $510,000 and are assigned 40 percent to Rosen and 60 percent to Hernandez. Total allocated fixed costs remain the same regardless of how these costs are assigned to customers.
The amount of allocated fixed costs to be assigned to Hernandez totals ________ .
Group of answer choices
$204,000
$290,000
$220,000
$306,000
Support Tech Inc. has two customers; Rosen and Hernandez. Rosen generates $300,000 in income after direct fixed costs are deducted, and Hernandez generates $290,000 in income after direct fixed costs are deducted. Allocated fixed costs total $510,000 and are assigned 40 percent to Rosen and 60 percent to Hernandez. Total allocated fixed costs remain the same regardless of how these costs are assigned to customers.
After allocating fixed costs to Rosen, the amount of profit or (loss) for this customer totals ________ .
Group of answer choices
$590,000
($16,000)
$204,000
$96,000
Support Tech Inc. has two customers; Rosen and Hernandez. Rosen generates $300,000 in income after direct fixed costs are deducted, and Hernandez generates $290,000 in income after direct fixed costs are deducted. Allocated fixed costs total $510,000 and are assigned 40 percent to Rosen and 60 percent to Hernandez. Total allocated fixed costs remain the same regardless of how these costs are assigned to customers.
Which of the following is the course of action preferred by management regarding Hernandez?
Group of answer choices
Drop Hernandez because this customer generates a net loss.
Keep Hernandez because eliminating this customer would have the effect of decreasing company profit by $290,000.
Drop Hernandez because this customer generates less income after direct fixed costs than Rosen.
Keep Hernandez because eliminating this customer would have the effect of increasing company profit by $290,000.
Which of the following best describes the difference between using differential analysis and capital budgeting for decision-making?
Group of answer choices
Differential analysis involves short-run operating decisions and capital budgeting involves long-run capacity decisions.
Differential analysis involves long-run capacity decisions and capital budgeting involves short-run operating decisions.
Differential analysis and capital budgeting require an analysis of differential revenues and costs.
Differential analysis requires calculating the present value of future cash flows and capital budgeting does not.
In: Accounting
A nutritionist claims that the mean tuna consumption by a person is 3.2 pounds per year. A sample of 50 people shows that the mean tuna consumption by a person is 2.9 pounds per year. Assume the population standard deviation is 1.01 pounds. At alphaequals0.08, can you reject the claim?
(a) Identify the null hypothesis and alternative hypothesis.
A. Upper H 0: mugreater than2.9 Upper H Subscript a: muless than or equals2.9
B. Upper H 0: mugreater than3.2 Upper H Subscript a: muless than or equals3.2
C. Upper H 0: muequals3.2 Upper H Subscript a: munot equals3.2
D. Upper H 0: muless than or equals2.9 Upper H Subscript a: mugreater than2.9
E. Upper H 0: munot equals2.9 Upper H Subscript a: muequals2.9
F. Upper H 0: muless than or equals3.2 Upper H Subscript a: mugreater than3.2
(b) Identify the standardized test statistic. z=
(Round to two decimal places as needed.)
(c) Find the P-value. =
(Round to three decimal places as needed.)
(d) Decide whether to reject or fail to reject the null hypothesis.
A. Reject Upper H 0. There is sufficient evidence to reject the claim that mean tuna consumption is equal to 3.2 pounds.
B. Fail to reject Upper H 0. There is not sufficient evidence to reject the claim that mean tuna consumption is equal to 3.2 pounds.
C. Fail to reject Upper H 0. There is sufficient evidence to reject the claim that mean tuna consumption is equal to 3.2 pounds.
D. Reject Upper H 0. There is not sufficient evidence to reject the claim that mean tuna consumption is equal to 3.2 pounds.
In: Statistics and Probability
. Smith Inc. produces and sells bicycles. They are expecting to sell 95,000 units this year. Their variable costs are $123 per unit and their fixed costs are $9,205,000. a. If they would like to earn 25% per unit, at what price should they sell the bicycles? b. What price should they set to earn 25% if the fixed costs were $8,000,000? c. What if the fixed costs were $8,000,000 and they want to earn 30% per unit?
In: Finance
The cooker will increase sales by $9,300 per year and will cut annual operating costs by $13,200. The system will cost $45,900 to purchase and install. This system is expected to have a 5-year life and will be depreciated to zero using straight-line depreciation and have no salvage value. The tax rate is 35 percent and the required return is 10.7 percent. What is the NPV of purchasing the pressure cooker?
In: Finance
The balance sheet for Bryan Corporation is given below. Sales for the year were $3,090,000, with 75 percent of sales sold on credit.
| BRYAN CORPORATION Balance Sheet Dec. 31, 20XX |
|||||
| Assets | Liabilities and Equity | ||||
| Cash | $60,000 | Accounts payable | $245,000 | ||
| Accounts receivable | 290,000 | Accrued taxes | 55,000 | ||
| Inventory | 375,000 | Bonds payable (long term) | 200,000 | ||
| Plant and equipment | 435,000 | Common stock | 330,000 | ||
| Retained earnings | 330,000 | ||||
| Total assets | $1,160,000 | Total liabilities and equity | $1,160,000 | ||
Compute the following ratios: (Use 365 days in a year. Do not round intermediate calculation. Round the final answers to 2 decimal places.)
| a. | Current ratio | ___x |
| b. | Quick ratio | ____ x |
| c. | Debt-to-total-assets ratio | ____% |
| d. | Asset turnover | _____x |
| e. | Average collection period | ____days |
In: Finance
| Earnings per common share of ABC Industries for the next year are expected to be $2.25 and to grow 7.5% per year over the next 4 years. At the end of the 5 years, earnings growth rate is expected to fall to 6.25% and continue at that rate for the foreseeable future. ABC’s dividend payout ratio is 40%. If the expected return on ABC's common shares is 18.5%, calculate the current share price. (Round your answer to the nearest cent.) | |
| Current share price $ | |
plz show the work paper
In: Finance
A 45 year old man presents in the Emergency Room with a two day history of black covered stools and recurrent nosebleeds. His history reveals both a recent as well as past history of ethanol abuse. His coagulations studies reveal:
Platelet Count: 60,000/cumm
PT: 20 sec
APPT: 52 sec
Thrombin Time: 11 sec
Fibrinogen: 201 mg%
FDP greater than 40 ?g.ml
1. What is the probable diagnosis?
2. What additional tests should be performed to confirm the diagnosis?
In: Nursing
Barbara is a 72-year-old woman with a "Type A" personality who
was diagnosed with a peptic ulcer more than 40 years ago. At that
time, her doctor told her to follow a bland diet and eat
three meals per day with three snacks per day of whole milk to
"quiet" her stomach. She meticulously complied with the diet to the
point of becoming obsessive about eating anything that may not be
"allowed." She lost 15 pounds by following the bland diet because
her intake was so restricted. She recently began experiencing ulcer
symptoms and has put herself back
on the bland diet, convinced it is necessary in order to recover
from her ulcer. Yesterday, she ate the following as shown
below:
Breakfast: 1 poached egg, 2 slices of dry white toast, 1 cup whole milk
Morning Snack: 1 cup whole milk
Lunch: 3/4 cup cottage cheese with 1/2 cup peaches
Afternoon Snack:1 cup whole milk
Dinner: 3 oz boiled chicken, 1/2 cup boiled plain potatoes, 1/2 cup boiled green beans, 1/2 cup gelatin
Evening Snack: 1 cup whole milk
Barbara's 1600-calorie My Plate plan calls for 1.5 cups of fruit, 2 cups of vegetables, 5 grains, 5 oz of meat/beans, 3 cups of milk, and 5 teaspoons of oils. How does her intake compare
• What food groups is she undereating? Overeating? What are the potential nutritional consequences of her current diet?
• What other information would be helpful for you to know in dealing with Barbara?
• Barbara clearly wants to be on a bland diet; what would you tell her about diet recommendations for PUD?
• What recommendations would you make to improve her symptoms and meet her nutritional requirements while respecting her need to follow a "diet"?
In: Nursing
Albert Co. is considering a four-year project that will require an initial investment of $7,000. The base-case cash flows for this project are projected to be $15,000 per year. The best-case cash flows are projected to be $22,000 per year, and the worst-case cash flows are projected to be –$1,500 per year. The company’s analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analysts also think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project generating the worst-case cash flows.
What would be the expected net present value (NPV) of this project if the project’s cost of capital is 10%?
$31,369
$29,718
$36,322
$33,020
Albert now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario cash flows. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cash inflow of $4,750 (at the end of year 2). The $4,750 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project’s assets and the company’s –$1,500 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash flows in years 3 and 4 of the project.
Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into account.
$34,849
$38,334
$36,591
$41,819
What is the value of the option to abandon the project?_______
In: Finance