Investment Outlay Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $11 million, and production and sales will require an initial $5 million investment in net operating working capital. The company's tax rate is 40%. What is the initial investment outlay? Write out your answer completely. For example, 2 million should be entered as 2,000,000. $ The company spent and expensed $150,000 on research related to the new project last year. Would this change your answer? Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $1.5 million after taxes and real estate commissions. How would this affect your answer? The project's cost will .
In: Finance
A new method of HIV testing has been proposed based on a new quick detection procedure where saliva is examined. Suppose that the new method tests 867 persons and falsely categorizes 25 of the 176 HIV positive results. Assuming the current best standard of practice for saliva based quick detection HIV tests has a false positive rate of only 10%, determine if the efficacy of the two tests are significantly different. Write out your null and alternative hypotheses and interpret your results and use an alpha level of 0.05. Is a normal approximation appropriate? Why or why not?
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Yes, npq>5 Ho: p=.10, Ha: p≠0.10 Z statistic=1.8573, pvalue of 0.0633 Fail to reject the null hypothesis that the failure rate in the new detection mechanism is any better than the current system. |
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No, npq<5 Ho: p=.10, Ha: p≠0.10 Z statistic=1.7771, pvalue of 0.0006 Fail to reject the null hypothesis that the failure rate in the new detection mechanism is any better than the current system. |
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Yes, npq>5 Ho: p=0.01, Ha: p≠0.010 Z statistic=2.1003, pvalue of 0.05 Reject the null hypothesis that the failure rate in the new detection mechanism is any better than the current system. |
In: Statistics and Probability
Wendell’s Donut Shoppe is investigating the purchase of a new $34,600 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $6,500 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 2,500 dozen more donuts each year. The company realizes a contribution margin of $1.60 per dozen donuts sold. The new machine would have a six-year useful life.
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.
Required:
1. What would be the total annual cash inflows associated with the new machine for capital budgeting purposes?
2. What discount factor should be used to compute the new machine’s internal rate of return? (Round your answers to 3 decimal places.)
3. What is the new machine’s internal rate of return? (Round your final answer to the nearest whole percentage.)
4. In addition to the data given previously, assume that the machine will have a $13,755 salvage value at the end of six years. Under these conditions, what is the internal rate of return? (Hint: You may find it helpful to use the net present value approach; find the discount rate that will cause the net present value to be closest to zero.)
In: Finance
What is the new growth theory? how does the new growth theory differ from the growth theory developed by Robert Solow?
In: Economics
Should Burberry’s be focused on new brick-and-mortar stores, as new CEO Christopher Bailey did with the opening of Burberry’s largest store, 121 Regent Street in London, or should they focus on more online sales worldwide? Are high-end products (clothing such as Burberry’s) better sold in stores or online, or both?
In: Economics
Imagine that you buy a new computer system with independent
components including a new desktop computer (with a CPU and a
graphics card), new software, and a new monitor. You want to play
games on the new system, but it runs games very slowly. You assume
that the keyboard and mouse are not creating the problem; so, to
figure out what is making the system run so slowly, you experiment
with combinations of your old equipment with the new equipment.
Here are your experiments and results:
Experiment 1: New computer, new software, and new monitor — and it
runs slowly.
Experiment 2: New computer, new software, and old monitor — and it
runs slowly.
Experiment 3: New computer, old software, and new monitor — and it
runs fast.
Experiment 4: New computer, old software, and old monitor — and it
runs fast.
Experiment 5: Old computer, new software, and new monitor — and it
runs fast.
Experiment 6: Old computer, new software, and old monitor — and it
slowly.
Experiment 7: Old computer, old software, and new monitor — and it
runs fast.
Experiment 8: Old computer, old software, and old monitor — and it
runs fast.
Based on this data, which experiment shows that the conjunction of
the new software and the old monitor is NOT SUFFICIENT for the
system to run slowly?
In: Advanced Math
Question:4
In: Statistics and Probability
Henderson is on a business trip in New Jersey. He drove his car from New York to New Jersey and checks into the Hotel Ritz. The Ritz has a guarded underground parking lot. Henderson gives his keys to the parking attendant, but did not tell him that his wife’s expensive ($15,000) fur coat was in the car. The coat was packed in a box in the trunk of the car. When Henderson went to check out the next day, he realized his car had been stolen. Henderson is very upset and wants to hold the hotel liable for the car and his wife’s $15,000 fur coat.
what will the insurance company do? Will they acknowledge the claim since the car was stolen at no fault to the owner? How will the owner prove that the coat was lost?
In: Operations Management
Are well-established firms or new entrants more likely to a) develop and/or b) adopt new technologies? What are some reasons for your choice?
PLEASE ANSWER IN WORD FORMAT ONLY. NO PICTURES. PLEASE ANSWER IN 350 WORDS.
Dont copy paste from website.
Thanks
Subject: Management of Technological Innovation
In: Operations Management
Profit or Loss on New Stock Issue
Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows:
| Price to public: | $5 per share |
| Number of shares: | 3 million |
| Proceeds to Beedles: | $14,000,000 |
The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $500,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price?
In: Finance