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You must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine, including shipping and installation costs, is $155,000, and the equipment will be fully depreciated at the time of purchase. The machine would be sold after 3 years for $46,000. The machine would require a $7,000 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $39,000 per year. The marginal tax rate is 25%, and the WACC is 8%. Also, the firm spent $4,500 last year investigating the feasibility of using the machine.

1. How should the $4,500 spent last year be handled?
   1. Last year's expenditure should be treated as a terminal cash flow and dealt with at the end of the project's life. Hence, it should not be included in the initial investment outlay.
   2. Last year's expenditure is considered an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis.
   3. Last year's expenditure is considered a sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis.
   4. The cost of research is an incremental cash flow and should be included in the analysis.
   5. Only the tax effect of the research expenses should be included in the analysis.
   
   -Select-IIIIIIIVVItem 1
   
2. What is the initial investment outlay for the machine for capital budgeting purposes after the 100% bonus depreciation is considered, that is, what is the Year 0 project cash flow? Enter your answer as a positive value. Round your answer to the nearest dollar.
   $  
   
3. What are the project's annual cash flows during Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar.
   Year 1: $  
   Year 2: $  
   Year 3: $  
   
4. Should the machine be purchased?

An enzyme catalyzes the reaction S → P. The table shows how the reaction rate (v) of the enzyme varies with the substrate concentration [S].

a) Create a Lineweaver-Burk plot of the data given in the table above.
b) Calculate Km, Vm, and Vm / Kmfor the enzyme.
c) Also calculate kcat and kcat / Km (the specificity constant) when given that
  [E] = 10 nM.d) How saturated will an enzyme be if the activity is measured at a substrate concentration 2x greater than Km? Give the answer as a percentage of Vm.

1. Rolex is an expensive watch is powered by a 3-V Lithium expected to last five years. Suppose the life of a battery has a standard deviation of ± 0.30 years and is normally distributed.

Tell Rolex Corporation the following:

1. the length-of-life value for which 2.5 % of the watch batteries last longer.

2. the  length-of-lifetime for which 5% of the watch batteries last longer!

V. Rahr and Sons is a Fort Worth brewery founded by Fritz Rahr, a Neeley undergraduate and MBA. Currently the company makes Rahr Blonde Lager, Rahr’s Red, and Ugly Pug brews. They are considering a new beer, Frog Princess, with which to celebrate their ties to TCU. The project includes an initial outlay of $750,000 for the purchase of capital equipment that will be depreciated straight line to zero over six years.

Sales are expected to be $400,000 in years 1-3 and $600,000 in years 4-6. Production costs during years 1-6 are as follows: fixed costs (not including depreciation) are expected to be $150,000 per year; variable costs per year will be 40% of sales. The project will require an initial investment in NWC of 200,000 in year 0.

Beyond year six, the company expects that sales and unlevered net income in year seven will be 4% higher than that in year 6, and will continue growing at 4% per year infinitely. Additionally, in year 7 and beyond, new capital expenditures net of depreciation, and increases in NWC, combined, will be 6% of sales. Assume the marginal tax rate is 21%. The appropriate discount rate is 8%.

What is the NPV of the project? What is the IRR? Should the project be undertaken?

A train, travelling with velocity v = 0.8c, enters a tunnel. The train has proper length 100m and the tunnel has proper length 80m. When the center of the train coincides with the center of the tunnel, two gates located at either end of the tunnel come crashing down. The three events (the center of the train reaching the center of the tunnel, the front gate closing and the rear gate closing) occur simultaneously in the stationary reference frame. a) Describe the order of the events in the train’s reference frame. b) Where are the two ends of the train (from the point of view of each reference frame) when each of the events occurs?

V & T Faces, Inc. manufactures to types of makeup foundation. Type S is for sensitive skin and type N is for non-sensitive skin. The products have the following materials and labor requirements:

The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on the production volume of 495,000 bottles. Production overhead is applied on the basis of direct-labor hours.

The following selling and administrative expenses are anticipated for the next year:

The sales forecast is as follows:

The following inventory information is available. The unit production costs for each product are expected to be the same this year and the following year.

Required:

Prepare a master budget for V & T Faces, Inc., for the next year. Assume an income tax rate of 40 percent. Include the following:

1. Budgeted income statement

The electric component of a beam of polarized light is Ey = (5.10 V/m) sin[(1.16 × 106 m-1)z + ωt]. (a) Write an expression for the magnetic field component of the wave, including a value for ω. What are the (b) wavelength, (c) period, and (d) intensity of this light? (e) Parallel to which axis does the magnetic field oscillate? (f) In which region of the electromagnetic spectrum is this wave?

V. Rahr and Sons is a Fort Worth brewery founded by Fritz Rahr, a Neeley undergraduate and MBA. Currently the company makes Rahr Blonde Lager, Rahr’s Red, and Ugly Pug brews. They are considering a new beer, Frog Princess, with which to celebrate their ties to TCU. The project includes an initial outlay of $750,000 for the purchase of capital equipment that will be depreciated straight line to zero over six years.

Sales are expected to be $400,000 in years 1-3 and $600,000 in years 4-6. Production costs during years 1-6 are as follows: fixed costs (not including depreciation) are expected to be $150,000 per year; variable costs per year will be 40% of sales. The project will require an initial investment in NWC of 200,000 in year 0.

Beyond year six, the company expects that sales and unlevered net income in year seven will be 4% higher than that in year 6, and will continue growing at 4% per year infinitely. Additionally, in year 7 and beyond, new capital expenditures net of depreciation, and increases in NWC, combined, will be 6% of sales. Assume the marginal tax rate is 21%. The appropriate discount rate is 8%.

What is the NPV of the project? What is the IRR? Should the project be undertaken?

Mass m = 0.1 kg moves to the right with speed v = 0.54 m/s and collides with an equal mass initially at rest. After this inelastic collision the system retains a fraction = 0.9 of its original kinetic energy. If the masses remain in contact for 0.01 secs while colliding, what is the average force in N between the masses during the collision? Hints: All motion is in 1D. Ignore friction between the masses and the horizontal surface. You will probably need to use the quadratic formula to solve the resulting equations. VR must be greater than VL since the masses can't pass through each other!

A household’s daily energy usage is 800 Wh. The operating voltage is set at 24 V. Day of autonomy required is 4 days and the manufacturer only allows the battery to have a minimum state of charge of 50%. Calculate the minimum sized battery bank in Ah that would meet the household’s load requirements?