A company is considering a new project. The project costs $430,000 and has a 5-year life. During the Year 1, it will produce a cash flow of $114,000, which is expected to grow at 6.70% per annum from Year 2 to 5. The appropriate discount rate is 13.60% per annum. Please answer the following questions:

(a) Work out the Year 2 to 5 cash flows from this investment (with no added terminal value) (1 mark).

(b) Use a financial function to work out the Net Present Value (NPV) and the Internal Rate of Return (IRR) of the project (1 mark).

(c) Use a logical function to indicate whether the NPV and IRR suggest that this project should proceed (1 mark).

(d) Add a Data Table that displays how the net present value changes as the discount rate and growth rate vary between 12%-17% and 6%-11% respectively, as shown in the table below (2 marks - no marks for entering individual formulae into the table).

6. A company has 48 sales representatives, one for each state in the contiguous United States.

Each state is divided into four regions. Each state sales representative only reports the average sales from the state he or she covers each week. The average reported is calculated from one individual data point per region. Before the New National Sales Manager was hired, the average sales reported per state each week was $95,000 with a standard deviation of $12,000.

The National Sales Manager claims that under her leadership, sales have increased despite the weakening economy. A sample was taken when the manager’s annual review was being written and average sales were $105,100.

a) Based on an a=.02, can the National Sales Manager make her claim?

Use and show the 5-Step Process.

Use Z or t Values as demonstrated in class, not p-values

b) What is the cutoff point of sales that allows or would allow the National Sales Manager to make the claim?

Review these Skill Builders (and all of the other Course Materials): -Evaluating p-values -Statistical Power Identify the scenario you are evaluating and name the population. Estimate the size of that population. Example: the population of scenario 1 seems to be students at a State University so you could estimate the number of students at a typical State University. The University of South Florida up the road from me has about 40,000 students Identify the independent variable (IV) and the dependent variable (DV). Sometimes this is stated by the researchers and sometimes you have to ferret it out. In scenario 2, the IV and DV are given as Race and Education, respectively. Write a null hypothesis. If the null hypothesis is not provided in the scenario, write a null hypothesis based on the information that is provided in the scenario. Each scenario addresses differences in an interval or ratio DV among a Nominal or Ordinal IV made up of 2 or more groups. So write the null hypothesis this way: There is no difference in Education based on Race among (state/name the population). Critically evaluate the sample size. This is tricky because the scenarios do not provide us with the right information to calculate an appropriate sample size. And you want to avoid stating that a sample size ‘seems’ to be the right size (very amateurish). What to do? Go to this sample size calculator: https://www.surveysystem.com/sscalc.htm. Use the box labeled Calculate Sample Size, Enter .95 for the confidence level, your estimate of the population, 5 for the confidence interval and see what pops up for the ideal sample size. Compare that number to the sample size in the scenario and critically evaluate the sample size in terms of making a Type I or Type II error. For example, if the sample size is smaller than the ideal sample size, does the probability of making a Type I error increase or decrease. Do the same drill with a Type II error. Critically evaluate the scenario for meaningfulness. Follow the guidance I provided in the Announcement Week 5 Discussion: How To Critically Evaluate The Discussion Scenario. Note: we can often relate meaningfulness to social change. That is, if the research is meaningful then it may have implications for social change. Try evaluating meaningfulness and social change in the same paragraph. But first, define meaningfulness and define social change. Cite, cite, cite. Critically evaluate the statements for statistical significance. Compare the researcher reported p-value for the hypothesis test they conducted (either a t-test or an ANOVA) to the confidence level (usually .05). If the reported p-value is greater than .05, then the researcher should fail to reject the null hypothesis and state that there is no statistical significance. If the reported p-value is less than .05, then the researcher should reject the null hypothesis and state that there is statistical significance. I know this is counter-intuitive. Just do it. Add this for grins, “There is no such decision as ‘rapidly approaching significance.’ This is statistics, not a hurricane watch.” Select 1 response to the following multiple choice question: What scenario would you find to be the least fun?Having a root canal performed by an experienced dentist. Having 4 root canals performed by an unsupervised novice dentist. Having 21 root canals performed by a trained Capuchin monkey. Trying to statistically determine differences in patient post-root canal pain levels based on the dentist’s training.

6. For the purposes of the Goods and Services Tax (GST), when a registered business makes a GST-free supply it means that:
A. ☐ It is liable for GST on the supply, but is not entitled to an input tax credit on GST paid on its business inputs affecting that supply  
B. ☐ It is liable for GST on the supply, and is entitled to an input tax credit on GST paid on its business inputs affecting that supply
C. ☒ It is not liable for GST on the supply, and is entitled to an input tax credit on GST paid on its business inputs affecting that supply
D. ☐ It is not liable for GST on the supply, and is not entitled to an input tax credit on GST paid on its business inputs affecting that supply

7. Cheng runs an accountancy practice, and has purchased a photocopier for $5,000 to use in his practice. The amount of GST included in the purchase price is:
A. ☐   $500.00
B. ☒   $454.55
C. ☐   $475.55
D. ☐   $50.00

8. Which of the following statements is correct?
A. ☐ If an employer provides a benefit to anyone other than an employee, the benefit cannot be a fringe benefit
B. ☐   If anyone other than an employer provides a benefit to an employee, a fringe benefit does not arise
C. ☐   All of the above statements are true
D. ☒   All of the above statements are false

9. The decision in Myer leads to the principle that ordinary income:
A. ☒ Includes receipts from a business transaction that is undertaken with an intention to profit
B. ☐ Includes receipts from all transactions undertaken by a business whether they are capital or revenue
C. ☐ Includes profits from the realisation of a capital item
D. ☐ Includes all interest earned from a loan to another subsidiary of a parent company

10. Jake bought a house in July 2018. It was in fairly good condition, but needed painting. Jake rented out the house for 10 months, and then painted all the walls.

The painting is:
A. ☐ Deductible under s25-5
B. ☐ Not deductible due to being an “initial repair”
C. ☒ Not deductible, as painting something is not really repairing it
D. ☐ Not deductible as the walls are an entirety
9. The decision in Myer leads to the principle that ordinary income:
A. ☒ Includes receipts from a business transaction that is undertaken with an intention to profit
B. ☐ Includes receipts from all transactions undertaken by a business whether they are capital or revenue
C. ☐ Includes profits from the realisation of a capital item
D. ☐ Includes all interest earned from a loan to another subsidiary of a parent company

10. Jake bought a house in July 2018. It was in fairly good condition, but needed painting. Jake rented out the house for 10 months, and then painted all the walls.

The painting is:
A. ☐ Deductible under s25-5
B. ☐ Not deductible due to being an “initial repair”
C. ☒ Not deductible, as painting something is not really repairing it
D. ☐ Not deductible as the walls are an entirety

Fair and adequate compensation is critical for attracting the most qualified employees and retaining and motivating staff. When determining compensation, consideration should be given to fair and equitable compensation among all workers in the same company (internal equity) and fair and equitable compensation relative to the external market (external equity).

Consider the following scenario:

You have two medical assistants (MAs) who earn $15 per hour at your medical practice. When you hire a new MA, you discover that the current market pays $16 per hour for medical assistants.

Respond to the following discussion points in relation to equity conflicts and compensation:

• State what you would offer the new MA and provide your reasons.
• Discuss the implications of your decisions on internal and external equity.
• Evaluate the changes, if any, you would make in the compensation of your current MAs.
• Recommend strategies for resolving similar equity conflicts with compensation.

Performance evaluations can be stressful for both employers and employees. Nevertheless, performance appraisals have a number of benefits for both employers and staff.

Respond to the following questions in relation to performance evaluation:

• In what ways do performance evaluations benefit employers?
• In what ways do performance evaluations benefit employees?

HR departments play an essential role in developing an agency's staffing strategy and handling employee-centered activities of an organization. The presence of an HR department, however, does not absolve individual managers within the agency of human resources responsibilities.

Respond to the following questions in relation to HR issues:

• What role, if any, do managers have in addressing HR issues or concerns?
• How does this differ from the role of the HR department staff?

Which of the following statements is false regarding pension funds companies?

You recently completed your undergraduate degree in Business Administration, majoring in Finance, at University of Scranton. You are now working at PPL Corporation, at their corporate headquarters, in Allentown, PA. Your first assignment is to estimate the weighted average cost of capital for the company. You can start by studying the annual report of PPL Corporation available at their website. You can use public information about the company, available at various sources, such as Yahoo Finance. You should identify the source of your data. In effect, you have to find the current values of the following quantities for the corporation. If you are unable to find a number precisely, you will have to estimate it.

1. Income tax rate

2. Market value of debt

3. Market value of equity

4. Cost of debt

5. Cost of equity

Please show work in excel and sources.

1. Future costs associated with a restructuring can only be recognized if they:

Select one:

a. will lead to a legal obligation in the future.

b. will lead to a constructive obligation in the future.

2. A construction company has contracted with a major university to build a new sports complex. The contract calls for two sports arenas to be built in the next three years. The company will receive $24,000,000 for the project and their engineers originally estimated a total cost to construct the two arenas of $20,400,000. The two arenas are scheduled for completion in May of 2007. If an actual cost of $9,200,000 is expended in 2004, and the engineers estimate another $12,800,000 is to be expended to complete construction, how much income is to be recognized under the percentage-of-completion method in 2004?

Select one:

a. $1,163,636

b. $836,364

c. $3,600,000

d. $2,000,000

c. will lead to a constructive and legal obligation in the future.

d. will lead to a provision for restructuring cost

Part 1: Financial Acumen

Keeping abreast of the financial measures and metrics employed by a company allows employees to better understand its health and position at any given time. Using Campbellsville University library link or other libraries and the Internet:

1. Review at least three (3) articles on financial acuity. Summary the articles in 400 – 600 words. Use APAformatting throughout including in-text citations and references.

2. Discuss the benefits of establishing solid financial acumen in a company? Discuss your personal experiences in a situation where financial acumen was either not supported as an organizational hallmark or, conversely, was built into the company's culture.

Part 2: Sarbanes-Oxley (SOX)

Write a 200-word commentary on Sarbanes Oxley and the importance this act has for American businesses today. Your commentary should include the following:

A. Rationale for SOX
B. Provisions of SOX
C. Enforcement of SOX