Write 3-4 paragraphs The Economic Cost and Benefits of Legalizing Weed?

Write 3-4 paragraphs The Economic Cost and Benefits of Legalizing Weed?

The cost of equipment purchased by Waterway, Inc., on June 1, 2020, is $102,900. It is estimated that the machine will have a $10,500 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 46,200, and its total production is estimated at 616,000 units. During 2020, the machine was operated 7,200 hours and produced 66,000 units. During 2021, the machine was operated 6,600 hours and produced 57,600 units.

Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.)

Assume that with a capital structure of 20% debt and 80% equity the cost of debt is 10% and cost of equity is 14%. The tax rate is 40%. The current value of the business is $ 500,000. The finance manager of the company is recommending a change of capital structure to 80% debt and 20% equity. He states that at effective cost of debt of 10% the increase of debt in capital structure would always increase the value of the firm.

He further adds that the cost of equity will remain the same at any level of debt as it should not only increase the earnings but also decrease the beta of the company’s stock.

1. Do you agree with the recommendation and reasoning of the finance manager? Give three reasons as to why you agree with the reasoning?

In case you don’t agree give three reasons in support of your response

Choose a topic from the course and delve into the economic cost or value. This reflection is not crab session, use critical thinking in determining a response. You will not need to post secondary replies. For example, should the Fed be audited? how much government intervention into the economy is excessive? are taxes evenly assessed across income levels? is GDP a good measure of economic wealth-what could be included? The minimum length for the post is the 300 words as in other discussions.

A concrete plant is considering a new piece of equipment with an initial cost of $75,000 and a salvage value of $15,000 at the end of its 25-year useful life. The annual maintenance cost for this piece of equipment is projected to be $10,500. The equipment will produce an annual labor savings of $24,000. What is the approximate projected before-tax rate of return on the equipment?

4. You are the manager of a monopoly, and your demand and cost functions are given by P = 300 - 3Q and C(Q) = 1,500 + 2Q^2 , respectively.

a. What price–quantity combination maximizes your firm’s profits?

b. Calculate the maximum profits.

c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination?

d. What price–quantity combination maximizes revenue?

e. Calculate the maximum revenues.

f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity combination?

In a random sample of five microwave​ ovens, the mean repair cost was ​$65.00 and the standard deviation was ​$13.50. Assume the population is normally distributed and use a​ t-distribution to construct a 90​% confidence interval for the population mean mu. What is the margin of error of mu​? Interpret the results. The 90​% confidence interval for the population mean mu is ​( nothing​, nothing​). ​(Round to two decimal places as​ needed.)

In a random sample of 35 ​refrigerators, the mean repair cost was ​$141.00 and the population standard deviation is ​$19.10. A 95​% confidence interval for the population mean repair cost is left parenthesis 134.67 comma 147.33 right parenthesis. Change the sample size to nequals70. Construct a 95​% confidence interval for the population mean repair cost. Which confidence interval is​ wider? Explain. Construct a 95​% confidence interval for the population mean repair cost. The 95​% confidence interval is ​( ​, ​). ​(Round to two decimal places as​ needed.)

Calexico Hospital plans to invest in a new MRI machine. The cost of the MRI is $1.4 million. The MRI has an economic life of 5 years, and it will be depreciated over a five-year life to a $200,000 salvage value. Additional revenues attributed to the new MRI will be in the amount of $1.5 million per year for 5 years. Additional operating expenses, excluding depreciation expense, will amount to $1 million per year for 5 years. Over the life of the machine, net working capital will increase by $30,000 per year for 5 years. Version 1 a. Assuming that the hospital is a non-profit entity, what is the project’s net present value (NPV) at a discount rate of 8%, and what is the project’s IRR? b. Assuming that the hospital is a for-profit entity and the tax rate is 30%, what is the project’s NPV at a cost of capital of 8%, and what is the project’s IRR? I need help getting the excel calculations correct.