"To decrease the cost of operating a lock in a large river, a new system of operation is proposed. The system will cost $840,000 to design and build. It is estimated that it will have to be reworked every 7 years at a cost of $130,000. In addition, a one-time expenditure of $72,000 will have to be made at the end of the fifth year for a new type of gear that will not be available until then. Annual operating costs are expected to be $72,000 for the first 12 years and $102,000 thereafter. Compute the capitalized cost of perpetual service at i = 6.3%. Enter your answer as a POSITIVE number."

(a)

Estimates of the marginal cost of a drug are $100 for a 100 pill bottle. If the manufacturer charged $75,000 per bottle, what is the elasticity of demand that they believe they faced?

(b)

The marginal cost is $100 / bottle. Suppose another company comes in to the market to compete with the manufacturer, what is the profit maximizing market price of the drug?

You are running a firm with the cost of capital of 8% and you have to choose between two projects, A and B. Project A lasts six years and project B lasts eighteen years. The initial investments are $50M for project A and $65M for project B. Project A is going to generate $15M per year and project B is going to generate 12M per year. Both projects are renewable.

Which project would you chose? (Hint: Use equivalent annual annuity or replacement chain method to answer this question.)

Question 9 options:

A salesman for a new manufacturer of cellular phones claims not only that they cost the retailer less but also that the percentage of defective cellular phones found among his products, ( p1), will be no higher than the percentage of defectives found in a competitor's line, ( p2 ). To test this statement, the retailer took a random sample of 135 of the salesman's cellular phones and 175 of the competitor's cellular phones. The retailer found that 14 of the salesman's cellular phones and 8 of the competitor's cellular phones were defective. Does the retailer have enough evidence to reject the salesman's claim? Use a significance level of α = 0.01 for the test. 1 of 6: State the null and alternative hypotheses for the test Step 2 of 6: Find the values of the two sample proportions, pˆ1 and pˆ2. Round your answers to three decimal places. Step 3 of 6: Compute the weighted estimate of p, ‾‾p. Round your answer to three decimal places Step 4 of 6: Compute the value of the test statistic. Round your answer to two decimal places. Step 5 of 6: Determine the decision rule for rejecting the null hypothesis H0. Round the numerical portion of your answer to two decimal places. Step 6 of 6: Make the decisi on for the hypothesis test. Reject or Fail to Reject Null Hypothesis.

The monthly cost of owning a car depends on the number of kilometers it is driver. Taylor found that in May it cost her $500 to drive 800 km and it June it cost her $650 to drive 1400 km.

1. Express the monthly Cost C as a function of the distance driven d, assuming that a linear function is a suitable model.
2. Use this function to predict the cost of driving 2000 km per month.
3. Find the derivative of the function with appropriate units. What does the derivative of the function represent?
4. Does it cost more to drive the car in December than it does in August? Explain.

Why is the return on equity greater than the return on assets if the cost of debt is less than the ROA? Why is the ROE less than the ROA if the cost of debt is greater than the ROA? Why does the ROE equal the ROA if the cost of debt is equal to the ROA?

As a business owner, you are faced with a number of "cost curves." Two of the most important are the marginal cost curve and the average total cost curve. How does your marginal cost affect your average total cost, and how does your ATC differ in the short and long-run?

Cost behavior is the term used to summarize the impact of costs that are influenced by volume. On a financial statement, these costs are identified as variable costs. Understanding the role of both fixed and variable costs in a health care organization is key to targeting profitability centers.

Assume the role of a financial consultant. You have been hired by a small non-profit hospital, struggling with profitability. You have been given full access to all financial and operational information to perform your research and analysis.

• Create a one-page outline of the work you will be performing. This outline will be given to the CFO.
• On a separate page, using fictional information, depict the hospital's cost behavior.
  • You may include graphics, such as pie charts or graphs, to illustrate.
  • Cost drivers should be clearly defined
  • One-page in length
• On a separate page, provide a recommendation summary for the CFO. This should include specific areas of concern to address, as well as areas of strength to continue supporting. Your wording should be professional and concise.
• Include a minimum of three references in APA style on a separate page
• Submit all four pages as part of one Word document

1. The cost of goods sold for the Immaculate Corporation for the month of April 2018 was $450,000. Work-in-process inventory at the end of April was 95 percent of the work-in-process inventory at the beginning of the month.

Overhead is 80 percent of the direct labor cost. During the month, $110,000 of direct materials were purchased. Revenues for Immaculate were $600,000, and the selling and administrative costs were $70,000.

Other information about Immaculate's inventories and production for April was as follows:

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Required: