Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $7 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. If the land were sold today, the net proceeds would be $7.61 million after taxes. In five years, the land will be worth $7.91 million after taxes. The company wants to build its new manufacturing plant on this land; the plant will cost $13.04 million to build. The following market data on DEI’s securities are current: Debt: 45,100 6.9 percent coupon bonds outstanding, 21 years to maturity, selling for 94.9 percent of par; the bonds have a $1,000 par value each and make semiannual payments. Common stock: 751,000 shares outstanding, selling for $94.10 per share; the beta is 1.21. Preferred stock: 35,100 shares of 6.25 percent preferred stock outstanding, selling for $92.10 per share. Market: 7.05 percent expected market risk premium; 5.25 percent risk-free rate. DEI’s tax rate is 34 percent. The project requires $830,000 in initial net working capital investment to get operational. a. Calculate the project’s Time 0 cash flow, taking into account all side effects. Assume that any NWC raised does not require floatation costs. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Time 0 cash flow $ -21480000

b. The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +3 percent to account for this increased riskiness. Calculate the appropriate discount rate to use when evaluating DEI’s project. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Discount rate %

c. The manufacturing plant has an eight-year tax life, and DEI uses straight-line depreciation. At the end of the project (i.e., the end of Year 5), the plant can be scrapped for $1.51 million. What is the aftertax salvage value of this manufacturing plant? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Aftertax salvage value $

d. The company will incur $2,310,000 in annual fixed costs. The plan is to manufacture 13,100 RDSs per year and sell them at $10,500 per machine; the variable production costs are $9,700 per RDS. What is the annual operating cash flow, OCF, from this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Operating cash flow $

e. Calculate the project's net present value. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net present value $ Calculate the project's internal rate of return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return %

Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $7 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. If the land were sold today, the net proceeds would be $7.67 million after taxes. In five years, the land will be worth $7.97 million after taxes. The company wants to build its new manufacturing plant on this land; the plant will cost $13.28 million to build. The following market data on DEI’s securities are current:

DEI’s tax rate is 30 percent. The project requires $860,000 in initial net working capital investment to get operational.

a.
Calculate the project’s Time 0 cash flow, taking into account all side effects. Assume that any NWC raised does not require floatation costs. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Time 0 cash flow            $

b.
The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +3 percent to account for this increased riskiness. Calculate the appropriate discount rate to use when evaluating DEI’s project. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Discount rate             %

c.
The manufacturing plant has an eight-year tax life, and DEI uses straight-line depreciation. At the end of the project (i.e., the end of Year 5), the plant can be scrapped for $1.57 million. What is the aftertax salvage value of this manufacturing plant? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Aftertax salvage value            $

d.
The company will incur $2,370,000 in annual fixed costs. The plan is to manufacture 13,700 RDSs per year and sell them at $11,100 per machine; the variable production costs are $10,300 per RDS. What is the annual operating cash flow, OCF, from this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Operating cash flow            $

e.
Calculate the project's net present value. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Net present value            $

Calculate the project's internal rate of return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Internal rate of return

Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $7 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. If the land were sold today, the net proceeds would be $7.64 million after taxes. In five years, the land will be worth $7.94 million after taxes. The company wants to build its new manufacturing plant on this land; the plant will cost $13.16 million to build. The following market data on DEI’s securities are current:

DEI’s tax rate is 40 percent. The project requires $845,000 in initial net working capital investment to get operational.

a.
Calculate the project’s Time 0 cash flow, taking into account all side effects. Assume that any NWC raised does not require floatation costs. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Time 0 cash flow            $

b.
The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +3 percent to account for this increased riskiness. Calculate the appropriate discount rate to use when evaluating DEI’s project. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Discount rate             %

c.
The manufacturing plant has an eight-year tax life, and DEI uses straight-line depreciation. At the end of the project (i.e., the end of Year 5), the plant can be scrapped for $1.54 million. What is the aftertax salvage value of this manufacturing plant? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Aftertax salvage value            $

d.
The company will incur $2,340,000 in annual fixed costs. The plan is to manufacture 13,400 RDSs per year and sell them at $10,800 per machine; the variable production costs are $10,000 per RDS. What is the annual operating cash flow, OCF, from this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Operating cash flow            $

e.
Calculate the project's net present value. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Net present value            $

Calculate the project's internal rate of return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Internal rate of return             %

Hi, I am not able to find this exact question with the steps and correct answers. Can someone please solve this? Thanks!

Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $7 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. If the land were sold today, the net proceeds would be $7.76 million after taxes. In five years, the land will be worth $8.06 million after taxes. The company wants to build its new manufacturing plant on this land; the plant will cost $13.64 million to build. The following market data on DEI’s securities are current:

DEI’s tax rate is 34 percent. The project requires $905,000 in initial net working capital investment to get operational.

a.
Calculate the project’s Time 0 cash flow, taking into account all side effects. Assume that any NWC raised does not require floatation costs. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Time 0 cash flow            $

b.
The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +3 percent to account for this increased riskiness. Calculate the appropriate discount rate to use when evaluating DEI’s project. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Discount rate             %

c.
The manufacturing plant has an eight-year tax life, and DEI uses straight-line depreciation. At the end of the project (i.e., the end of Year 5), the plant can be scrapped for $1.66 million. What is the aftertax salvage value of this manufacturing plant? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Aftertax salvage value            $

d.
The company will incur $2,460,000 in annual fixed costs. The plan is to manufacture 14,600 RDSs per year and sell them at $12,000 per machine; the variable production costs are $11,200 per RDS. What is the annual operating cash flow, OCF, from this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Operating cash flow            $

e.
Calculate the project's net present value. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Net present value            $

Calculate the project's internal rate of return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Internal rate of return             %

Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $7 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. If the land were sold today, the net proceeds would be $7.7 million after taxes. In five years, the land will be worth $8 million after taxes. The company wants to build its new manufacturing plant on this land; the plant will cost $13.4 million to build. The following market data on DEI’s securities are current:

DEI’s tax rate is 35 percent. The project requires $875,000 in initial net working capital investment to get operational.

a.
Calculate the project’s Time 0 cash flow, taking into account all side effects. Assume that any NWC raised does not require floatation costs. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Time 0 cash flow            $

b.
The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +3 percent to account for this increased riskiness. Calculate the appropriate discount rate to use when evaluating DEI’s project. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Discount rate             %

c.
The manufacturing plant has an eight-year tax life, and DEI uses straight-line depreciation. At the end of the project (i.e., the end of Year 5), the plant can be scrapped for $1.6 million. What is the aftertax salvage value of this manufacturing plant? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Aftertax salvage value            $

d.
The company will incur $2,400,000 in annual fixed costs. The plan is to manufacture 14,000 RDSs per year and sell them at $11,400 per machine; the variable production costs are $10,600 per RDS. What is the annual operating cash flow, OCF, from this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Operating cash flow            $

e.
Calculate the project's net present value. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Net present value            $

Calculate the project's internal rate of return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Internal rate of return             %

Alexandra Marcus, manager of the Sky Club Hotel, has requested your assistance on a queuing issue to improve the guest service at the hotel. Alexandra Marcus is considering how to restructure the front desk to reach an optimal level of staff efficiency and guest service. Observation of arrivals during the peak check-in time of 3:00PM to 5:00PM shows that an average of 80 guests arrive each hour. It takes an average of 3 minutes for the front-desk clerk to register each guest. At present, the hotel has five clerks on duty, each with a separate waiting line.

PLEASE SHOW CALCULATIONS!!

a. Average utilization rate of a server (p)

b. The probability of no. customers in the system (Po)

c. Average number of customers in the system (L)

d. Average time in the system (W)

e. Average waiting in line (Wq)

f. Average number of customers in line waiting Lq

Case Project Create a company. Your represents the capital budgeting committee of a successful firm. You have been invited to the next Board of Directors meeting to present your analysis and recommendation on a new capital project. Your presentation should contain the following: 1. Brief description of the proposed capital project 2. Estimation of the incremental cash flows related to the project 3. Estimation of the weighted average cost of capital 4. Financial evaluation of capital budget project (using NPV or IRR) 5. Recommendation to the Board of Directors on whether or not to proceed with the proposed capital project. A written summary should accompany your presentation. The written summary should be no more than five (5) pages, including exhibits. Your presentation should be no more than 20 minutes in length. You may use whatever means necessary to convey your analysis and recommendation. You may choose to use a recognized publicly held firm or a fictitious entity. Please use the following information as a guide to your analysis: 1. Target capital ratio: % of debt and % of equity 2. Beta coefficient 3. Risk-free rate is equal to the current level of a point on the Treasury yield curve. 4. The market risk premium is equal to 5% 5. Corporate tax rate is 35% 6. All cash flows related to the project are positive (except the initial expenditure) 7. Useful product life 8. “Straight-line” depreciation method.

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose a random sample of companies yielded the following data:

Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. (Let d = B − A.)

What is the value of the sample test statistic? (Round your answer to three decimal places.)

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

Is fishing better from a boat or from the shore? Pyramid Lake is located on the Paiute Indian Reservation in Nevada. Presidents, movie stars, and people who just want to catch fish go to Pyramid Lake for really large cutthroat trout. Let row B represent hours per fish caught fishing from the shore, and let row A represent hours per fish caught using a boat. The following data are paired by month from October through April.

Use a 1% level of significance to test if there is a difference in the population mean hours per fish caught using a boat compared with fishing from the shore. (Let d = B − A.)

What is the value of the sample test statistic? (Round your answer to three decimal places.)

Select 2 companies in the same industry (example: Target and Walmart; Ford and Chrysler; Verizon and T-Mobile). Using sources to support your thoughts, describe what you feel are the differences in strategy/focus each company uses, the unique value each tries to communicate to customers, and how successful you feel each company has been at implementing and communicating their strategic advantages.

A pharmaceutical company is evaluating its efficiency of its glucose control drug. The company believes that the drug controls glucose levels with the normal range of 80 to 115. A sample of 100 customers were found to have a mean of level of 102 with a standard deviation 12, can we conclude that the mean for this population is greater than 80 and less than 115, the sample is 100 and alpha is 0.5