In: Operations Management
2. Use either a shift in demand OR a shift in supply (not both)
to GRAPHICALLY represent each of the following situations. Also,
label the graphs correctly and indicate the changes in equilibrium
in each case.
a) The avocado market: Widely publicized studies on the health
benefits of avocado consumption.
b) Crude oil market: Interruption of world supplies as a result of
the war in the Middle East.
c) Orange Juice Market: Increased imports of orange juice from
Brazil.
d) Hotel room occupancy in Mexico: Increased Corvid 19 infection
rate in the USA and Canada, the largest source of tourists to
Mexico.
Four separate graphs, please.
In: Economics
1. You are opening a carnival. Building the carnival will cost $15M dollars, and the carnival will produce EBIT of $3M per year for the foreseeable future. Your tax rate is 28%, your cost of unlevered equity is 11%, and your cost of debt is 6%. In order to boost teen employment, the State of Kansas is offering you an $8M perpetual loan with an interest rate of 5%, but applying for this loan will incur administrative costs of $500,000.
A) What is the NPV of this amusement park if you do not accept the loan?
B) What is the NPV of the loan you are being offered?
C) What is the NPV of this project using the APV method?
In: Finance
You operate a group of hotels which have seen an increase in the amount of reservations. You currently have a staff of 10 people working in the reservations area. You would like to concentrate on providing the guests with an exceptional stay at the hotels, but the cost of a computerized reservation system would reduce the amount of staff which could service the guests. You have to make some decisions on which decision will be best for the business.
What relevant and irrelevant information do you need to make this decision?
What non-financial information is relevant to make this decision?
Explain how your decision will have an affect on your pricing for the hotel?
In: Accounting
Movement restrictions imposed by various governments to mitigate the spread of COVID-19 pandemic in the form of social distancing and closure of national and international borders and airports has brought a number of business organisations to a standstill, leading to the decline in growth and market share, especially the hard hit tourism and hospitality industries. Assume that you are the manager of IDISAM Hotel LTD, which holds the largest market share in the hospitality industry, but now on the verge of collapsing due to COVID-19 pandemic. Required: Supporting your answers with specific examples and justifications, propose corporate or grand strategies that the company can use to deal with the situation at hand.
In: Operations Management
Your local hotel has a dining room which has the capacity to seat 140 guests. It is opened for breakfast and lunch seven days a week and fully expects to be at capacity at these times. During January 2021, management has forecast the seat turnover for breakfast will be 3 times and for lunch 2 times, with the average bill to be $28 for breakfast and $58 for lunch. Beverage revenue is usually 12 per cent of the breakfast revenue and 28 per cent of the lunch revenue.
Calculate budgeted total revenue of food and beverage for the 31 days of January 2021. Express the answer as a daily food and beverage outcome and also a monthly figure.
In: Accounting
While investigating a group of defective solar arrays, taken from the Mohammed Bin Rashid Al Maktoum Solar Park in Dubai, you notice three main classifications of defects. 27% of defects are related to a cell’s semiconductor material bandgap, 51% are related to impact damage, and 22% are age-related in nature. Over the study period, 3 instances of material bandgap defects and 5 occurrences of age-related defects are recorded. What is the most probable number of recorded defects related to impact damage?
Note: This problem is related to discrete probability distribution ( I think multinomial distribution should be used)
In: Statistics and Probability
In: Civil Engineering
Options: Current Account Debit, Current Account Credit, Capital Account Debit, Capital Account Credit
1. Foreign freight and shipping services purchased by a Canadian exporter from a foreign transportation firm
2. Japan purchases more Canadian lumber products
3. Nova corporation of Canada sells a new stock issue to a Chinese investor
4. The purchase of insurance from Lloyds of London
5. The hotel bill of a Canadian tourist in Rome
6. Expenditures abroad by Canadian tourists
7. $15,000,000 sale of natural gas by PanCanadian to an American utility company
8. The import of a BMW automobile
In: Economics
Betsy Birdsong, an interior designer, has made plans to definitely retire in three years. She has begun to downsize her business and is moving out of the 2,000 square foot commercial condominium she owns in a prestigious business park. Betsy does not wish to sell at this time, so she has decided to offer the condominium as a lease-purchase option. While she hasn't decided on a purchase price, she is adamant about the lease term: a three-year lease with a two-year option (for the first two years only).
What is your opinion as to why she would require such a lease term?
In: Finance