Cori's Meats is looking at a new sausage system with an installed cost of $490,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $72,000. The sausage system will save the firm $170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $31,000. If the tax rate is 22 percent and the discount rate is 8 percent, what is the NPV of this project?

What is the ratio of cost of a “typical” MRI vs. CT scan for the same region (head, chest, etc.)?

What is MRI— what kind of image does it create and how?

Who invented MRI and when?

What are two reasons on why use a MRI instead of a CT scan?

If you get more information from MRI, why are CT scans still used?

What are T1 and T2 and what role do they play in imaging?

What sort of radiation is involved? Are MRIs “perfectly safe”? If not, what are the dangers?

Company A is assessing the purchase of a new ship. The ship will cost $497 million and will operate for 20 years. The company estimates annual cash flows from operating the ship to be $71.1 million, and its cost of capital is 12.5%.

1. Calculate the NPV and IRR of the purchase.
2. Prepare an NPV profile of the purchase and highlight the IRR.
3. Should the company proceed with the purchase?
4. How far off could the firm’s cost of capital estimate be before your purchase decision would change?

A store will give you a 4.75% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

If two rival firms’ products are on the indifference line of the cost benefit tradeoff, then explain what does this mean. (50 words) Indicate on your value map where would a successful product that is offering superior value be placed? (Use a clearly marked cross) Give two possible reasons that explain the position on the value map for this successful product. (about 50 words)

describe the cost-plus pricing method and why marketers use it even if it is not the best method for setting prices?

A large number of companies are trying to reduce the cost of prescription drug benefits by requiring employees to purchase drugs through a mandatory mail-order program. Suppose a large national retail company is considering requiring a mandated mail order program. The company is concerned about employee attitude and satisfaction levels and wishes to determine employee attitude regarding such a mail order prescription program. The company will move to the mail order system if more than 50% of the surveyed employees provide positive feedback on the program. The company disseminates information on the program and randomly surveys 600 employees. The results showed 310 employees favored the plan while the remainder of the surveyed employees responded unfavorably.  Answer the following questions:

A. Perform the appropriate test to determine if more than 50% of the company's employees favored the mail-order prescription program. Perform the test using the P-VALUE method. Use an alpha of .05 and be sure to show all required steps.

B. Define a Type I Error for this problem. Be specific - generic definitions will not be accepted.

C. Define a Type II Error for this problem. Be specific - generic definitions will not be accepted.

Why would an economist argue that tuition is not the largest cost of attending a state university?