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?
In: Finance
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?
In: Finance
|
Q |
AFC |
AVC |
ATC |
MC |
|
1 |
60 |
45 |
105 |
45 |
|
2 |
30 |
42.5 |
72.5 |
40 |
|
3 |
20 |
40 |
60 |
35 |
|
4 |
15 |
37.5 |
52.5 |
30 |
|
5 |
12 |
37 |
49 |
35 |
|
6 |
10 |
37.5 |
47.5 |
40 |
|
7 |
8.57 |
38.57 |
47.14 |
45 |
|
8 |
7.5 |
40.63 |
48.13 |
55 |
|
9 |
6.67 |
43.33 |
50 |
65 |
|
10 |
6 |
46.5 |
52.5 |
75 |
|
P = 56 |
P = 40 |
P = 32 |
|
|
Will this firm produce in the short run (yes or no)? |
|||
|
What is the profit maximizing output? |
|||
|
What economic profit or loss? |
|
MKT % |
Brewery |
|
41 |
AB InBev |
|
14 |
Molson Coors |
|
12 |
SAB Miller |
|
6 |
Constellation |
|
4 |
Heineken |
|
1.5 |
Yuengling |
|
1.5 |
Samuel Adams |
|
1 |
20 others |
In: Economics
Consider following two bonds:
Maturity Coupon YTM
Bond 1 4 years 6 5%
Bond 2 8 years 7% 5%
Coupon frequency and compounding frequency are assumed to be annual.
What should be the weight of Bond1 and Bond2 if your investment horizon is six years and you want to be hedged against small changes in interest rates?
In: Finance
what are the two cell types that interact with Stem cells? and how?
Outline the interaction with that cell type, including whether the interaction is direct or indirect, the outcome of that interaction, and whether the interaction is in the embryonic or adult stage of development
1-Adipocyte
2-Erythrocyte
3-Chondrocyte
4-Epithelial
5-Gonocyte
6-Lymphocyte
7-Myocyte
8-Neuron
9-Osteocyte
In: Biology
Stock A is expected to return 12 percent in a normal economy and lose 7 percent in a recession. Stock B is
expected to return 8 percent in a normal economy and 2 percent in a recession. The probability of the economy
being normal is 80 percent and the probability of a recession is 20 percent. What is the covariance of these two
securities?
Please SHOW Work Not JUST ExCell Thank You
In: Finance
Given two integers, start and end, where end is greater than start, write a recursive C++ function that returns the sum of the integers from start through end, inclusive.Example: If start is 5 and end is 10 then the function will return: 45 which is sum of 5, 6, 7, 8, 9, and 10.
int sum (int start, int end){
In: Computer Science
The Attaran Corporation manufactures two electrical products: portable air conditioners and portable heaters. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3 hours of wiring and 2 hours of drilling. Each heater must go through 2 hours of wiring and 1 hour of drilling. During the next production period, 240 hours of wiring time are available and up to 130 hours of drilling time may be used. Each air conditioner sold yields a profit of $20. Each heater assembled may be sold for a $19 profit. The aim of the objective function for Attaran Corporation should be to Maximize the objective value.
The optimum solution is:
Number of air conditioners to be produced = ___ (round your response to two decimal places).
Number of heaters to be produced =_____ (round your response to two decimal places).
Optimal solution value = _____ (round your response to two decimal places).
In: Operations Management
Design a C++ program
An address book is a book or a database used for saving and
storing contacts which may usually
consists of a few standard fields (for example: first name, last
name, company name, address,
telephone number, e-mail address, fax number, mobile phone
number).
Design an online address book to keep track of the details of
family members, close friends and
certain business associates. Details which your designed address
book will keep should be like
names (first name, last name), gender, addresses (street address,
city, province/state, zip code),
phone numbers, and dates of birth (date, month, year). Your program
should be able to handle a
maximum of 150 entries.
There should be TWO MAJOR MODULES of your program one should allow
the user to add, update
delete the entries and classify the entered person as a family
member, friend, or business associate
and another module should maintain one address book which must be
able to process a maximum
of 150 entries and also should perform the following
operations:
Load the data into the address book from a disk.
Search for a person by last name.
Print the gender, address details, phone number, and date of
birth of a given person.
Print the names of the people whose birthdays are in a given
month or between two given
dates.
Print the names of all the people having the same status, such as
family, friend, or
business.
Print the names of all the people having the same status, such as
family, friend, or
business.
Print the names of all the people between two last names.
Print the details of all people with same gender.
Make a C++ file on Microsoft visual and answer with the proper code
In: Computer Science
ASSIGNMENT:
Write a program to keep track of the total number of bugs collected in a 7 day period. Ask the user for the number of bugs collected on each day, and using an accumulator, keep a running total of the number of bugs collected. Display the total number of bugs collected, the count of the number of days, and the average number of bugs collected every day.
Create a constant for the number of days the bugs are being collected, and use that number throughout the program. Using a decision, either display "bug" or "bugs" as appropriate.
There is no validation.
Example Run #1:
(bold type is what is entered by the user)
How many bugs were collected on day #1? 5
How many bugs were collected on day #2? 2
How many bugs were collected on day #3? 3
How many bugs were collected on day #4? 6
How many bugs were collected on day #5? 1
How many bugs were collected on day #6? 4
How many bugs were collected on day #7? 2
In the 7 day period, the total number of bugs collected was xx
bugs.
The count is: x days
The average is: x.xx bugs per day
Example Run #2:
How many bugs were collected on day #1? 1
How many bugs were collected on day #2? 0
How many bugs were collected on day #3? 0
How many bugs were collected on day #4? 0
How many bugs were collected on day #5? 0
How many bugs were collected on day #6? 0
How many bugs were collected on day #7? 0
In the 7 day period, the total number of bugs collected was x
bug.
The count is: x days
The average is: x.xx bugs per day
The example runs show EXACTLY how your program input and output will look.
C programming no floats
In: Computer Science