|
Sharkey’s Fun Centre contains a number of electronic games, as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water slide on one portion of his property. Paul has gathered the following information about the slide: |
| a. |
Water slide equipment could be purchased and installed at a cost of $330,000. According to the manufacturer, the slide would be usable for 12 years, after which it would have no salvage value. |
| b. | Paul would use straight-line depreciation on the slide equipment. |
| c. |
To make room for the water slide, several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $60,000 to an amusement park in a nearby city. |
| d. |
Paul has concluded that about 50,000 more people would use the water slide each year than have been using the rides. The admission price would be $3.60 per person (the same price that the Fun Centre has been charging for the rides). |
| e. |
On the basis of experience at other water slides, Paul estimates that incremental operating expenses each year for the slide would be as follows: salaries, $85,000; insurance, $4,200; utilities, $13,000; maintenance, $9,800. |
| Required: |
| 1. |
Prepare an income statement showing the expected incremental net income each year from the water slide. |
| 2-a. | Compute the SRR expected from the water slide. |
| 2-b. |
On the basis of this computation, would the water slide be constructed if Paul requires an SRR of at least 14% on all investments? |
||||
|
| 3-a. | Compute the payback period for the water slide. (Round your answer to 2 decimal places.) |
| 3-b. | If Paul requires a payback period of five years or less, should the water slide be constructed? | ||||
|
In: Accounting
Because the manager is not an IS expert, the following table is used to store the information. As a member can attend many dinners and a member will not attend more than 1 dinner on the same date, the primary key of the following table is Member ID and Dinner ID. Dinners can have many courses, from one-course dinner to as many courses as the chef desired.
|
MemberID |
MemberName |
MemberAddress |
DinnerID |
DinnerDate |
VenueCode |
VenueDescription |
FoodCode |
FoodDescription |
|
214 |
Peter Wong |
325 Meadow Park |
D0001 |
02/02/2020 |
L01 |
Grand_Ball_Room |
EN3 |
Stu ed crab |
|
DEB |
||||||||
|
235 |
Mary Lee |
D0002 |
02/02/2020 |
L02 |
Café |
EN5 |
||
|
DEB |
||||||||
|
250 |
Peter Wong |
D0003 |
03/03/20 |
L01 |
Grand_Ball_Room |
SO1 |
Marinated Steak |
|
|
EN5 |
Chocolate Mousse |
|||||||
|
DE2 |
Key Lime Pie |
|||||||
|
235 |
Mary Lee |
D0003 |
03/03/2020 |
L02 |
Café |
S01 |
Pumpkin Soup |
|
|
SA2 |
Marinated Steak |
|||||||
|
DE2 |
Apple Pie |
|||||||
|
300 |
Paul Lee |
D0004 |
03/03/2020 |
L03 |
Petit_Ball_Room |
SA2 |
Apple Pie |
In: Computer Science
Sexual Harrassment
The question posted by Chourok C on the Yahoo! Answers web page begins this way: I just started this job 2 weeks ago as the CEO’s personal assistant. He is married 3x and is a very charismatic man, the CEO of a self-built multi-million empire. After a few days, he suddenly asked me if he could take me out to diner in London, if I book my flights and hotel he will afterwards reimburse me. [1] It was then, she relates, that she knew he wanted to sleep with her. In her words, she’s “totally not interested, but wants to preserve the job by not rejecting him.” So she made an excuse to get out of it and her post continues: “He then bothered me for hours about giving him good reasons why I couldn’t go. Then he said OK, next week we will go to Milan! He is a very powerful man, and I just get nervous of him. But I really do not want to lose my job. What should I do?” [2]
Case Study 2 Questions
4.The poster called Srta. Argentina answers, “He can’t fire you because you rejected his sexual advances. You can sue him if he does. And you can file a sexual harassment claim against him.” [4]
-Sketch the harassment case against the CEO.
-If the CEO hired you to form an ethical defense of his behavior, what would the case look like?
6.Ethically, is there any difference between the boss threatening to fire her unless he gets what he wants and her threatening to turn him in unless she gets what she wants? If so, what is it? If not, why not?
In: Operations Management
unit 7:1 DB Food
Food and beverage managers use various purchasing methods to control inventory, reduce waste, and build vendor relations. The way materials are processed through the operation, including receiving and storage is vitally important not only to the efficient and profitable operation of the eatery, but also for quality control and health reasons.
Topic 1: Receiving and Storage
Proper purchasing, receiving, and storage of food and beverage items is critical to a food and beverage department’s or eateries’ success. In this Discussion, you will apply what you learned in the Learning Activity and Reading to the following scenario and then respond to the questions.
Scenario: Your hotel restaurant is planning a big Thanksgiving dinner for 400 guests that includes many different types of pie all requiring whipped cream. As the Food and Beverage Manager, you inform your vendor 30 days in advance of the event that you will need 10 gallons of cream. Your vendor misunderstands and has 20 gallons in ten 2-gallon containers, delivered 5 days later to a new receiving clerk who stores nine (9) of the 2-gallon containers the cream immediately. The cook sees 1 of the 2-gallon containers on a preparation table about an hour later and proceeds to use a gallon of the cream in his gravy for that night’s meal. He leaves the remainder on the preparation table shouting to his sous chef’s assistant to put the cream away when he can. Two hours later, the assistant stores the remainder in the refrigerator. Note: The cream has an expiration date three and a half weeks from the sending date.
In: Operations Management
A population mean is to be estimated from the sample described. Round your answer to one decimal place if necessary. Assume that all confidence intervals use a 95% confidence level.
Sample size = 100, sample mean = 48, sample standard deviation = 14
What is the margin of error?
|
a |
1.4 |
|
|
b |
2.8 |
|
|
c |
9.6 |
|
|
d |
0.3 |
Select the sample most representative of the population of interest.
A researcher wants to determine the status of the electorate one month before the presidential election.
|
a |
A group of 30 persons contacted by phone with the numbers randomly chosen numbers |
|
|
b |
A random group of 30 persons in the phone book |
|
|
c |
A group of 30 persons on the voter registration list |
|
|
d |
A group of 30 persons from church who voted in the last election |
State whether the actual data are discrete or continuous and explain why.
The temperatures in Manhattan at noon for each New Year's Day
|
a |
Continuous because the numbers can have any value within some range of values |
|
|
b |
Discrete because only counting numbers are used, and no values between the counting numbers are possible |
Apply the Empirical Rule to answer the question.
A bank's loan officer rates applicants for credit. The ratings are normally distributed with a mean of 200 and a standard deviation of 50. What percentage of the ratings will be between 200 and 300?
|
a |
34% |
|
|
b |
68% |
|
|
c |
95% |
|
|
d |
47.5% |
A study conducted at a certain college shows that 63% of the school's graduates find a job in their chosen field within a year after graduation. Find the probability that among 4 randomly selected graduates, at least one finds a job in his or her chosen field within a year of graduating.
|
a |
0.981 |
|
|
b |
0.909 |
|
|
c |
0.019 |
|
|
d |
0.830 |
population mean is to be estimated from the sample described. Round your answer to one decimal place if necessary. Assume that all confidence intervals use a 95% confidence level.
Sample size = 100, sample mean = 48, sample standard deviation = 14
What is the margin of error?
|
a |
1.4 |
|
|
b |
2.8 |
|
|
c |
9.6 |
|
|
d |
0.3 |
Select the sample most representative of the population of interest.
A researcher wants to determine the status of the electorate one month before the presidential election.
|
a |
A group of 30 persons contacted by phone with the numbers randomly chosen numbers |
|
|
b |
A random group of 30 persons in the phone book |
|
|
c |
A group of 30 persons on the voter registration list |
|
|
d |
A group of 30 persons from church who voted in the last election |
State whether the actual data are discrete or continuous and explain why.
The temperatures in Manhattan at noon for each New Year's Day
|
a |
Continuous because the numbers can have any value within some range of values |
|
|
b |
Discrete because only counting numbers are used, and no values between the counting numbers are possible |
Apply the Empirical Rule to answer the question.
A bank's loan officer rates applicants for credit. The ratings are normally distributed with a mean of 200 and a standard deviation of 50. What percentage of the ratings will be between 200 and 300?
|
a |
34% |
|
|
b |
68% |
|
|
c |
95% |
|
|
d |
47.5% |
A study conducted at a certain college shows that 63% of the school's graduates find a job in their chosen field within a year after graduation. Find the probability that among 4 randomly selected graduates, at least one finds a job in his or her chosen field within a year of graduating.
|
a |
0.981 |
|
|
b |
0.909 |
|
|
c |
0.019 |
|
|
d |
0.830 |
In: Statistics and Probability
Five years ago, a company was considering the purchase of 72 new diesel trucks that were 14.56% more fuel-efficient than the ones the firm is now using. The company uses an average of 10 million gallons of diesel fuel per year at a price of $1.25 per gallon. If the company manages to save on fuel costs, it will save $1.875 million per year (1.5 million gallons at $1.25 per gallon). On this basis, fuel efficiency would save more money as the price of diesel fuel rises (at $1.35 per gallon, the firm would save $2.025 million in total if he buys the new trucks).
Consider two possible forecasts, each of which has an equal chance of being realized. Under assumption #1, diesel prices will stay relatively low; under assumption #2, diesel prices will rise considerably. The 72 new trucks will cost the firm $5 million. Depreciation will be 24.84% in year 1, 38.39% in year 2, and 36.46% in year 3. The firm is in a 40% income tax bracket and uses a 10% cost of capital for cash flow valuation purposes. Interest on debt is ignored. In addition, consider the following forecasts:
Forecast for assumption #1 (low fuel prices):
|
Price of Diesel Fuel per Gallon |
|||
|
Prob. (same for each year) |
Year 1 |
Year 2 |
Year 3 |
|
0.1 |
$0.81 |
$0.89 |
$1.01 |
|
0.2 |
$1.02 |
$1.11 |
$1.11 |
|
0.3 |
$1.11 |
$1.23 |
$1.32 |
|
0.2 |
$1.3 |
$1.48 |
$1.46 |
|
0.2 |
$1.4 |
$1.58 |
$1.61 |
|
Forecast for assumption #2 (high fuel prices): |
|||
|
Price of Diesel Fuel per Gallon |
|||
|
Prob. (same for each year) |
Year 1 |
Year 2 |
Year 3 |
|
0.1 |
$1.22 |
$1.52 |
$1.69 |
|
0.3 |
$1.3 |
$1.7 |
$2.01 |
|
0.4 |
$1.81 |
$2.32 |
$2.52 |
|
0.2 |
$2.21 |
$2.53 |
$2.83 |
Required: Calculate the percentage change on the basis that an increase would take place from the NPV under assumption #1 to the probability-weighted (expected) NPV.
Answer% Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).
Further Information (solution steps):
In: Finance
Five years ago, a company was considering the purchase of 72 new diesel trucks that were 14.56% more fuel-efficient than the ones the firm is now using. The company uses an average of 10 million gallons of diesel fuel per year at a price of $1.25 per gallon. If the company manages to save on fuel costs, it will save $1.875 million per year (1.5 million gallons at $1.25 per gallon). On this basis, fuel efficiency would save more money as the price of diesel fuel rises (at $1.35 per gallon, the firm would save $2.025 million in total if he buys the new trucks). Consider two possible forecasts, each of which has an equal chance of being realized. Under assumption #1, diesel prices will stay relatively low; under assumption #2, diesel prices will rise considerably. The 72 new trucks will cost the firm $5 million. Depreciation will be 24.84% in year 1, 38.39% in year 2, and 36.46% in year 3. The firm is in a 40% income tax bracket and uses a 10% cost of capital for cash flow valuation purposes. Interest on debt is ignored. In addition, consider the following forecasts: Forecast for assumption #1 (low fuel prices): Price of Diesel Fuel per Gallon Prob. (same for each year) Year 1 Year 2 Year 3 0.1 $0.81 $0.89 $1.01 0.2 $1.02 $1.11 $1.11 0.3 $1.11 $1.23 $1.32 0.2 $1.3 $1.48 $1.46 0.2 $1.4 $1.58 $1.61 Forecast for assumption #2 (high fuel prices): Price of Diesel Fuel per Gallon Prob. (same for each year) Year 1 Year 2 Year 3 0.1 $1.22 $1.52 $1.69 0.3 $1.3 $1.7 $2.01 0.4 $1.81 $2.32 $2.52 0.2 $2.21 $2.53 $2.83 Required: Calculate the percentage change on the basis that an increase would take place from the NPV under assumption #1 to the probability-weighted (expected) NPV. Answer % Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%). Note: The educational purpose of this problem targets the students’ ability to read + follow instructions. Further Information (solution steps): Step (1): Calculate the annual expected price of diesel per gallon under each assumption, based on the probabilities outlined in the inputs section. Step (2): Using the annual expected fuel prices calculated in step (1), determine the increase in annual savings created by the proposed efficiency for each assumption. Step (3): Find the increased cash flow after taxes (CFAT) for both forecasts, based on the annual increase in fuel savings determined in step (2) as the increase in earnings before depreciation and taxes (EBDT), and the starting point from which profit is calculated for each assumption. As part of this step, you must establish annual depreciation (remember: depreciation is a noncash charge). Step (4): Considering the increased annual CFAT produced in step (3), calculate the NPV of the truck purchases for each assumption, based on the discount rate (cost of capital) indicated in the inputs section Step (5): In view of the outcomes produced in step (4), estimate the combined NPV weighed by the probability of each assumption. Step (6): Finally, calculate the percentage difference hypothesizing that an increase took place starting from the NPV for assumption #1 to the combined NPV worked out in step (5).
In: Accounting
Five years ago, a company was considering the purchase of 65 new diesel trucks that were 14.78% more fuel-efficient than the ones the firm is now using. The company uses an average of 10 million gallons of diesel fuel per year at a price of $1.25 per gallon. If the company manages to save on fuel costs, it will save $1.875 million per year (1.5 million gallons at $1.25 per gallon). On this basis, fuel efficiency would save more money as the price of diesel fuel rises (at $1.35 per gallon, the firm would save $2.025 million in total if he buys the new trucks).
Consider two possible forecasts, each of which has an equal chance of being realized. Under assumption #1, diesel prices will stay relatively low; under assumption #2, diesel prices will rise considerably. The 65 new trucks will cost the firm $5 million. Depreciation will be 25.05% in year 1, 38.25% in year 2, and 36.02% in year 3. The firm is in a 40% income tax bracket and uses a 11% cost of capital for cash flow valuation purposes. Interest on debt is ignored. In addition, consider the following forecasts:
Forecast for assumption #1 (low fuel prices):
|
Price of Diesel Fuel per Gallon |
|||
|
Prob. (same for each year) |
Year 1 |
Year 2 |
Year 3 |
|
0.1 |
$0.81 |
$0.9 |
$1.01 |
|
0.2 |
$1.01 |
$1.11 |
$1.11 |
|
0.3 |
$1.09 |
$1.21 |
$1.31 |
|
0.2 |
$1.29 |
$1.44 |
$1.45 |
|
0.2 |
$1.4 |
$1.58 |
$1.62 |
|
Forecast for assumption #2 (high fuel prices): |
|||
|
Price of Diesel Fuel per Gallon |
|||
|
Prob. (same for each year) |
Year 1 |
Year 2 |
Year 3 |
|
0.1 |
$1.2 |
$1.52 |
$1.73 |
|
0.3 |
$1.3 |
$1.72 |
$1.99 |
|
0.4 |
$1.81 |
$2.32 |
$2.49 |
|
0.2 |
$2.19 |
$2.5 |
$2.81 |
Required: Calculate the percentage change on the basis that an increase would take place from the NPV under assumption #1 to the probability-weighted (expected) NPV.
Answer% Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).
Note: The educational purpose of this problem targets the students’ ability to read + follow instructions.
Further Information (solution steps):
In: Finance
Five years ago, a company was considering the purchase of 74 new diesel trucks that were 15.13% more fuel-efficient than the ones the firm is now using. The company uses an average of 10 million gallons of diesel fuel per year at a price of $1.25 per gallon. If the company manages to save on fuel costs, it will save $1.875 million per year (1.5 million gallons at $1.25 per gallon). On this basis, fuel efficiency would save more money as the price of diesel fuel rises (at $1.35 per gallon, the firm would save $2.025 million in total if he buys the new trucks).
Consider two possible forecasts, each of which has an equal chance of being realized. Under assumption #1, diesel prices will stay relatively low; under assumption #2, diesel prices will rise considerably. The 74 new trucks will cost the firm $5 million. Depreciation will be 25.35% in year 1, 38.81% in year 2, and 36.55% in year 3. The firm is in a 39% income tax bracket and uses a 10% cost of capital for cash flow valuation purposes. Interest on debt is ignored. In addition, consider the following forecasts:
Forecast for assumption #1 (low fuel prices):
|
Price of Diesel Fuel per Gallon |
|||
|
Prob. (same for each year) |
Year 1 |
Year 2 |
Year 3 |
|
0.1 |
$0.83 |
$0.93 |
$1.02 |
|
0.2 |
$1.01 |
$1.11 |
$1.13 |
|
0.3 |
$1.12 |
$1.21 |
$1.3 |
|
0.2 |
$1.31 |
$1.45 |
$1.47 |
|
0.2 |
$1.4 |
$1.57 |
$1.62 |
|
Forecast for assumption #2 (high fuel prices): |
|||
|
Price of Diesel Fuel per Gallon |
|||
|
Prob. (same for each year) |
Year 1 |
Year 2 |
Year 3 |
|
0.1 |
$1.21 |
$1.49 |
$1.72 |
|
0.3 |
$1.31 |
$1.7 |
$2.01 |
|
0.4 |
$1.82 |
$2.32 |
$2.53 |
|
0.2 |
$2.19 |
$2.49 |
$2.79 |
Required: Calculate the percentage change on the basis that an increase would take place from the NPV under assumption #1 to the probability-weighted (expected) NPV.
Answer% Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).
Note: The educational purpose of this problem targets the students’ ability to read + follow instructions.
Further Information (solution steps):
In: Accounting
Five years ago, a company was considering the purchase of 77 new diesel trucks that were 15.45% more fuel-efficient than the ones the firm is now using. The company uses an average of 10 million gallons of diesel fuel per year at a price of $1.25 per gallon. If the company manages to save on fuel costs, it will save $1.875 million per year (1.5 million gallons at $1.25 per gallon). On this basis, fuel efficiency would save more money as the price of diesel fuel rises (at $1.35 per gallon, the firm would save $2.025 million in total if he buys the new trucks).
Consider two possible forecasts, each of which has an equal chance of being realized. Under assumption #1, diesel prices will stay relatively low; under assumption #2, diesel prices will rise considerably. The 77 new trucks will cost the firm $5 million. Depreciation will be 25.2% in year 1, 38.48% in year 2, and 36.34% in year 3. The firm is in a 40% income tax bracket and uses a 10% cost of capital for cash flow valuation purposes. Interest on debt is ignored. In addition, consider the following forecasts:
Forecast for assumption #1 (low fuel prices):
Price of Diesel Fuel per Gallon
Prob. (same for each year)
Year 1
Year 2
Year 3
0.1
$0.79
$0.92
$1.01
0.2
$0.99
$1.13
$1.12
0.3
$1.12
$1.2
$1.3
0.2
$1.31
$1.44
$1.44
0.2
$1.4
$1.57
$1.6
Forecast for assumption #2 (high fuel prices):
Price of Diesel Fuel per Gallon
Prob. (same for each year)
Year 1
Year 2
Year 3
0.1
$1.22
$1.51
$1.7
0.3
$1.3
$1.71
$2.02
0.4
$1.82
$2.33
$2.49
0.2
$2.21
$2.5
$2.79
Required: Calculate the percentage change on the basis that an increase would take place from the NPV under assumption #1 to the probability-weighted (expected) NPV.
Answer
% Do not round intermediate calculations. Input your answer as a
percent rounded to 2 decimal places (for example: 28.31%).
Note: The educational purpose of this problem targets the students’ ability to read + follow instructions.
Further Information (solution steps):
Step (1): Calculate the annual expected price of diesel per gallon under each assumption, based on the probabilities outlined in the inputs section.
Step (2): Using the annual expected fuel prices calculated in step (1), determine the increase in annual savings created by the proposed efficiency for each assumption.
Step (3): Find the increased cash flow after taxes (CFAT) for both forecasts, based on the annual increase in fuel savings determined in step (2) as the increase in earnings before depreciation and taxes (EBDT), and the starting point from which profit is calculated for each assumption. As part of this step, you must establish annual depreciation (remember: depreciation is a noncash charge).
Step (4): Considering the increased annual CFAT produced in step (3), calculate the NPV of the truck purchases for each assumption, based on the discount rate (cost of capital) indicated in the inputs section
Step (5): In view of the outcomes produced in step (4), estimate the combined NPV weighed by the probability of each assumption.
Step (6): Finally, calculate the percentage difference hypothesizing that an increase took place starting from the NPV for assumption #1 to the combined NPV worked out in step (5).
In: Finance