1. In an article about the cost of health care, Money magazine reported that a visit to a hospital emergency room for something as simple as a sore throat has a mean cost of $328 (Money, January 2009). Assume that the cost for this type of hospital emergency room visit is normally distributed with a standard deviation of $92. Answer the following questions about the cost of a hospital emergency room visit for this medical service.

1. What is the probability that the cost will be more than $500?

2. What is the probability that the cost will be less than $250?

3. What is the probability that the cost will be between $300 and $400?

4. If the cost to a patient is in the lower 8% of charges the cost of this patient’s emergency room visits?

"A firm is considering purchasing a computer system.
-Cost of system is $198,000. The firm will pay for the computer system in year 0.
-Project life: 5 years
-Salvage value in year 0 (constant) dollars: $10,000
-Depreciation method: five-years MACRS
-Marginal income-tax rate = 40% (remains constant over time)
-Annual revenue = $147,000 (year-0 constant dollars)
-Annual expenses (not including depreciation) = $88,000 (year-0 constant dollars)
-The general inflation rate is 4.9% during the project period (which will affect all revenues, expenses, and the salvage value but not depreciation).
-The firm borrows the entire $198,000 at 14.9% interest to be repaid in 2 annual payments. The debt interest paid and the principal payment SHOULD NOT be changed by the inflation rate. Lending agencies set the interest rate of borrowing to account for the inflation rate.
Calculate the effects of borrowing and include the debt interest paid and the principal repayment into the income statement and cash flow statement. Determine the INFLATION-FREE IRR' of the computer system. Enter your answer as a percentage between 0 and 100."

Wildhorse Co. acquires a delivery truck at a cost of $77,000. The truck is expected to have a salvage value of $8,000 at the end of its 5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.

"A firm is considering purchasing a computer system.
-Cost of system is $198,000. The firm will pay for the computer system in year 0.
-Project life: 5 years
-Salvage value in year 0 (constant) dollars: $10,000
-Depreciation method: five-years MACRS
-Marginal income-tax rate = 40% (remains constant over time)
-Annual revenue = $147,000 (year-0 constant dollars)
-Annual expenses (not including depreciation) = $88,000 (year-0 constant dollars)
-The general inflation rate is 4.9% during the project period (which will affect all revenues, expenses, and the salvage value but not depreciation).
-The firm borrows the entire $198,000 at 14.9% interest to be repaid in 2 annual payments. The debt interest paid and the principal payment SHOULD NOT be changed by the inflation rate. Lending agencies set the interest rate of borrowing to account for the inflation rate.
Calculate the effects of borrowing and include the debt interest paid and the principal repayment into the income statement and cash flow statement. Determine the INFLATION-FREE IRR' of the computer system. Enter your answer as a percentage between 0 and 100."

"A firm is considering purchasing a computer system.
-Cost of system is $198,000. The firm will pay for the computer system in year 0.
-Project life: 5 years
-Salvage value in year 0 (constant) dollars: $10,000
-Depreciation method: five-years MACRS
-Marginal income-tax rate = 40% (remains constant over time)
-Annual revenue = $147,000 (year-0 constant dollars)
-Annual expenses (not including depreciation) = $88,000 (year-0 constant dollars)
-The general inflation rate is 4.9% during the project period (which will affect all revenues, expenses, and the salvage value but not depreciation).
-The firm borrows the entire $198,000 at 14.9% interest to be repaid in 2 annual payments. The debt interest paid and the principal payment SHOULD NOT be changed by the inflation rate. Lending agencies set the interest rate of borrowing to account for the inflation rate.
Calculate the effects of borrowing and include the debt interest paid and the principal repayment into the income statement and cash flow statement. Determine the INFLATION-FREE IRR' of the computer system. Enter your answer as a percentage between 0 and 100."

"A firm is considering purchasing a computer system.
-Cost of system is $198,000. The firm will pay for the computer system in year 0.
-Project life: 5 years
-Salvage value in year 0 (constant) dollars: $10,000
-Depreciation method: five-years MACRS
-Marginal income-tax rate = 40% (remains constant over time)
-Annual revenue = $147,000 (year-0 constant dollars)
-Annual expenses (not including depreciation) = $88,000 (year-0 constant dollars)
-The general inflation rate is 4.9% during the project period (which will affect all revenues, expenses, and the salvage value but not depreciation).
-The firm borrows the entire $198,000 at 14.9% interest to be repaid in 2 annual payments. The debt interest paid and the principal payment SHOULD NOT be changed by the inflation rate. Lending agencies set the interest rate of borrowing to account for the inflation rate.
Calculate the effects of borrowing and include the debt interest paid and the principal repayment into the income statement and cash flow statement. Determine the INFLATION-FREE IRR' of the computer system. Enter your answer as a percentage between 0 and 100."

"A firm is considering purchasing a computer system.
-Cost of system is $198,000. The firm will pay for the computer system in year 0.
-Project life: 5 years
-Salvage value in year 0 (constant) dollars: $10,000
-Depreciation method: five-years MACRS
-Marginal income-tax rate = 40% (remains constant over time)
-Annual revenue = $147,000 (year-0 constant dollars)
-Annual expenses (not including depreciation) = $88,000 (year-0 constant dollars)
-The general inflation rate is 4.9% during the project period (which will affect all revenues, expenses, and the salvage value but not depreciation).
-The firm borrows the entire $198,000 at 14.9% interest to be repaid in 2 annual payments. The debt interest paid and the principal payment SHOULD NOT be changed by the inflation rate. Lending agencies set the interest rate of borrowing to account for the inflation rate.
Calculate the effects of borrowing and include the debt interest paid and the principal repayment into the income statement and cash flow statement. Determine the INFLATION-FREE IRR' of the computer system. Enter your answer as a percentage between 0 and 100."

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $882,000. This cost will be depreciated straight-line to zero over the project’s seven-year life, at the end of which the sausage system can be scrapped for $97,000. The sausage system will save the firm $185,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $43,000. If the tax rate is 30 percent and the discount rate is 6 percent, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV

As a Cost and Management Consultant in the banking industry in Ghana, one of your highly esteemed clients, a top tier banking institution in Ghana has required of you to advise them as to whether target costing can be applied to the banking industry . what are the products or services can target costing be applied.

What costs are included in the initial cost of property, plant, and equipment when they are purchased? What is the rationale for including costs in addition to the purchase price of the asset? please answer in your own words, do not use the outside resources