Your firm is considering a project to produce new whatchamacallits. The project will require new equipment at a cost of $150,000. Shipping and installation will be $25,000 and initial training required before the project starts will cost $20,000. The equipment will be depreciated on a straight- line basis to a book value of $15,000 over the project’s three year life. At the end of the project, the equipment will be sold for $10,000.

Initially, the project requires an increase in inventory of $5,000, an increase in Accounts Payable of $3,000, and an increase in Accounts Receivable of $8,000. Changes in working capital will be recouped at the end of the project.

The whatchamacallits will be sold for $10 each. The project would require variable costs of 20% of sales, annual fixed costs of $21,000, and annual recertification training at a cost of $5,000.

The tax rate is 35% and the cost of capital is 12%. Assuming that the operating cash flows will be constant over the project’s life, calculate the financial break-even level of annual sales.

The Dunder Muffin Company is considering purchasing a new commercial oven that costs $350,000. This new oven will produce cash inflows of $115,000 at the end of Years 1 through 10. In addition to the cash inflows, at the end of Year 5 there will be a net cash outflow of $200,00. The company has a weighted average cost of capital of 12.5 percent. What is the MIRR of the investment? Would you make the investment? Why or Why not? Note that we discounted the project's negative cash flows back to the present using the project's required rate of return and then computed the MIRR from the modified cash flows. The MIRR of the investment with a discount rate of 12.5% is.

Fairfax Pizza is considering buying a new oven. The new oven would be purchased today for 14,000 dollars. It would be depreciated straight-line to 1,600 dollars over 2 years. In 2 years, the oven would be sold for an after-tax cash flow of 2,300 dollars. Without the new oven, costs are expected to be 14,000 dollars in 1 year and 17,900 in 2 years. With the new oven, costs are expected to be 3,800 dollars in 1 year and 14,300 in 2 years. If the tax rate is 50 percent and the cost of capital is 11.49 percent, what is the net present value of the new oven project?

5. ABC Telecom plans to purchase a new machine that will produce mobile phones. The new machine will require an initial investment of $450,000 and has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 20.000 mobile phones per year with each costing $120,00 to make. Each will be sold at $130,00. Assume LAR Telecom uses a discount rate of 22 percent and has a tax rate of 40 percent. What is the NPV of the project and should LAR Telecom make the purchase? If not, please explain why.

XYZ corp. is considering investing in a new machine. The new machine cost will $10,000 installed. Depreciation expense will be $1000 per year for the next five years. At the end of the fifth year XYZ expects to sell the machine for $6000. XYZ will also sell its old equipment today that has a book value of $3000 for $3000. In five years, the old machine will be fully depreciated and have a salvage value of zero. Additionally, XYZ Corp expects that the new machine will increase its EBIT by $2000 in each of the next five years. Assuming that XYZ’s tax rate is 21% and the new machines WACC is 15%, what is the projects NPV. Round your final answer to two decimals.

Assignment on New Technologies (Essay)

Assignment on New Technologies

The world of information technology is constantly changing. New technologies are invented almost daily.

Tell the story of a new information technology invented during the past 30 years. You may present inventors’ stories. You should explain the relation to information technology. Examples of information technologies invented during the past 30 years include:

• Viber; Amazon; Netflix; Twitter; YouTube; MySpace; WebVR; Google; Flickr; Smartphone; Linux; PayPal; Wikipedia; Skype; fiber optics; cloud computing; HTML5; 4G or 5G Networks; Smartboard; 3-D Printer; Instagram; Pinterest; Auto-tune; Cochlear Implants; Snapchat; Bluetooth; lab-on-a-chip technology; a lab on fiber; Apple Watch; Second Life; IMVU; multi-core processor; flat panel display; solid-state drive; BitLocker technology; e-readers; laser microphone; robot vacuum; radar and laser detectors; Uber; see also textbooks and recent news. A good source for personal computers related information is PC World.

1. Limit your written answer to a maximum of 350 words; after the text, including the sources you used for your research. The written assignment (Essay) portion of your mark is 2%.
2. Prepare a 3-5-minute presentation. The presentation portion of your mark is 3%.

3. It is a group activity and makes a group of two (2) students. You can work individually if you do not find a suitable partner. However, each student has to submit the assignment and powerpoint presentation individually but have to mention the name of your partner in the submitted documents.

Submit the assignment and the presentation by uploading your files on CCMS (Moodle) to each student individually. If needed, you may submit only a link to the presentation. A submission of a presentation file is not required. You may present without any presentation documents.

Solar Co. is evaluating a proposal to build a new solar plant. The new plant costs $225 million today (at t = 0), and the expected salvage value of the plant in eight years is $43 million (at t = 8). Based on these assumptions, the NPV of this project is $20 million. Now suppose the project team made an error, and the expected salvage value of the plant is zero in eight years (at t = 8). By how much would the NPV of the project change, assuming the salvage value is zero? The CCA rate for the solar plant is 40%. Solar Co. has a corporate tax rate of 37% and a required rate of return of 15%.

ABC is a new company established in Victoria. The new equipment XYZ is considering costs $765,000 and is expected to last for 5 years. The equipment can be sold at $137,000 at the end of the project. The initial net working capital investment is 52,000 and will remain constant throughout the period and 100% will be recovered at the end of the final year. The new equipment will save $120,000 annually before taxes. If the company's required rate of return is 15% and the PVCCATs value is $123,765 determine the NPV value of the project. Assume a tax rate of 30%. The CCA rate is 35%.

A new company is planning to build a new database system for holding information about customers and salesmen. ‘Customers’, ‘Salesmen’ and ‘Customers_Salesmen’ are part of the information that the new company wants to store in the new database. These tables are shown below in figure 1, figure 2 and figure 3. The new company intends to use MySQL for building the new database.

Figure 1: Customers table

Figure 2: Salesmen table

Figure 3: Customers_Salesmen table

Based on the above three tables, answer the following 6 questions:

1. Write an SQL statement for creating the customer table that is shown in figure 2. No need to write any SQL statement for adding any record to the customer table.  
2. Write an SQL statement for adding one record to the customer table that was created in question-1 above. The added record should be one of the records that are given in the customer table.   
3. Write an SQL statement to list the information of salesmen who work in Paris.
4. Write an SQL statement to list all customer names who work with the salesman whose id is 5001.                                                                                                                           \
5. Write an SQL statement to list all customer names who work with the salesman whose commission is 0.13.                                                                                                          ]
6. Write an SQL statement to increase the salesman commission by 5%.

A swim club is designing a new pool to replace its old pool. The new pool would need to last for 10 years since the club is planning on relocating after 10 years. A concrete shell would cost $85,000 and last for all 10 years. Another option is to install a vinyl liner that would cost only $70,000 to install. However, the vinyl is not guaranteed to last for all 10 years, and it has a 40% chance of breaking down. Repair of the vinyl would cost $40,000 and would extend the life of the vinyl liner to the 10-year mark. If both options are acceptable to the swim club, which one minimizes cost?