ABC company is considering producing a new range of smartphones that will require it to build a new factory. Feasibility studies have been done on the factory which cost $5 million. The studies have found the following:

1. The factory will cost $25 million and will have a useful life of 20 years.

2. The land where the factory will go is currently used as a carpark for workers and it is assumed that the company will have to pay $200000 per year for their workers to park in a nearby carpark.

3. The factory will be depreciated on a straight line basis and will have a salvage value of $0 but it is believed that most of it can be sold for scrap after 20 years for $50000.

4. Due to the nature of the business they are in, they will have to perform some environmental tests to make sure that some of the chemicals they are using are not entering the ground water around the factory. These tests will be performed every 5 years and cost $625000.

5. Through the building of this factory and the selling of the phones it produces, it’s revenue will increase by $5 million in year 1 and remain at this level for the operational life of the factory.

6. The extra costs that the company accrues per year due to the project are $435000 for labour, $50000 for overhead like power and water bills and marketing costs for the new line of phones will be $500000 per year but will decrease by $15000 per year as the phone gains greater penetration.

7. The company’s current cost of capital is 8% per year.

8. The tax rate is 30%.

9. The project requires an initial investment in working capital of $1000000 that is returned in year 20.

Use the above information to answer the following. I AM ONLY LOOKING FOR AN ANSWER TO C.

A. Calculate the free cash flows that come from this project for the 20 years it is operational. ​

B. Calculate the NPV, IRR and payback period of the project. Should they go ahead with the project? ​

C. Calculate the break even point for the following variables:​ (ANSWER IN EXCEL)

a. The cost of capital.

b. The yearly revenue.

c. The labour cost.

he Mountain Top Resort Community is an elegant, thriving four-season resort and community of over 1,200 single family homes, 1,000 time-share units, and a multimillion-dollar ski business. Guests visiting the resort can enjoy the indoor/outdoor water park, play golf on one of the two 18-hole championship golf courses, ski, snowboard, or snow tube in the winter on 14 trails that are all lighted for night skiing, or relax at the full-service spa. There are also three dining rooms, card rooms, nightly movies, and live weekend entertainment. The resort uses a computerized system to make room reservations and bill customers. Following standard policy for the industry, the resort also offers authorized travel agents a 10% commission on room bookings. Each week, the resort prints an exception report of bookings made by unrecognized travel agents. However, the managers usually pay the commissions anyway, partly because they don’t want to anger the travel agencies and partly because the computer file that maintains the list of authorized agents is not kept up-to-date. Although management has not discovered it, several employees are exploiting these circumstances. As often as possible, they call the resort from outside phones, pose as travel agents, book rooms for friends and relatives, and collect the commissions. The incentive is obvious: rooms costing as little as $100 per day result in payments of $10 per day to the “travel agencies” that book them. The scam has been going on for years, and several guests now book their rooms exclusively through these employees, finding these people particularly courteous and helpful.

Requirements

Would you say this is a computer crime? Why or why not?

Is this fraud? Why or why not?

What internal controls would you recommend that would enable the resort’s managers to prevent such offenses?

Classify the controls that you just identified as either preventive, detective, or corrective controls.

How does the matter of “accountability” (tracing transactions to specific agencies) affect the problem?

What role does Robert play in the succession planning for the family business? What steps should he take?​

Power Play at the Inn

Fronting on the Pacific Ocean, the Inn at the Wharf boasts 410 guest rooms and suites, two dining rooms, a lobby bar, and the lively Gull's Nest nightclub. The inn's annual revenues are $15 million.

Robert May, 57, purchased and remodeled the inn in 1970. His wife Katherine, although not now active in the business, had assisted in decorating and menu design. They have three children: Jake, 35; Amy, 30; and Andy, 24.

Three years ago, Jake and his wife Elaine, wanting to settle down from their life as rock musicians and start a family, were welcomed back. Jake manages the Gull's Nest. Elaine, a stabilizing force for Jake, especially during the stress of on-the-road tours, is interested in using her art skills at the inn.

Business degree in hand, Amy took over office management five years ago, including computer operations, for the inn. She and her husband, who is not involved at the inn, have a son. Andy will soon receive his degree in hotel and restaurant management and expects to work at the inn upon graduation.

Today, Robert arrived home looking haggard. Questioning him, Katherine soon discovered that Amy had come into Robert's office and burst into tears. Jake had been through her office with an old buddy who represented a computer company and informed Amy that he was considering purchasing a new computer system for the inn. "And besides that, Dad, I'm pregnant again. Can I handle my job and two children?"

Robert called Jake to his office and inquired about the computer decision. Much to Robert's surprise, Jake pulled out his wallet and presented a new business card: "Jacob May, General Manager, Inn at the Wharf."

A. The Train Station has a database of travel times on the blue line ever sense it began running. An analyst pulls a report of all the travel times from the Washington stop to the Oak Park stop. The average is 14 and the standard deviation is 4.

B. The analyst calculates 81 average travel times based on a random sample of 49 travel times in each sample. A subset of these averages is 14.5, 16.8, 17.2, etc.

C. One of the sets of 49 travel times has values such as 12, 14, 18, 17, etc.

Question 1

Indicate which of the three is a sample distribution

Choice A

Choice B

Choice C

Question 2

Indicate which of the three is the population distribution

Choice A

Choice B

Choice C

Question 3

Indicate which of the three is a sampling distribution

Choice A

Choice B

Choice C

Question 4

According to the Central Limit Theorem (and only the Central Limit Theorem) what will be the average of the sampling distribution

A) 14

B) 4/2

C) 14/81

D) 4/7

Question 5

According to the Central Limit Theorem (and only the Central Limit Theorem) what will be the standard deviation of the sampling distribution

A) 14

B) 4/6

C) 14/10

D) 4/7

Question 6

According to the Central Limit Theorem (and only the Central Limit Theorem) what will be the shape of the sampling distribution

A) Regular

B) Normal

C) Non-normal

D) Rectangular

Question 7

Now suppose that the analyst calculates 100 averages each with a random set of 36 travel times in each sample. What will be the standard deviation of the sampling distribution. All other facts are the same.

A) 14

B) 4/6

C) 14/10

D) 4/7

Question 8

Which of the two sampling distributions will have a WIDER spread?

A) The first

B) The second

Sharkey’s Fun Center 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. Mr. Sharkey gathered the following information about the slide:

1. Water slide equipment could be purchased and installed at a cost of $360,000. According to the manufacturer, the slide would be usable for 12 years after which it would have no salvage value.
2. Mr. Sharkey would use straight-line depreciation on the slide equipment.
3. 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 $97,500 to an amusement park in a nearby city.
4. Mr. Sharkey 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 $3.90 per person (the same price the Fun Center has been charging for the old rides).
5. Based on experience at other water slides, Mr. Sharkey estimates that annual incremental operating expenses for the slide would be: salaries, $84,000; insurance, $4,700; utilities, $13,500; and maintenance, $10,300.

Required:

1. Prepare an income statement showing the expected net operating income each year from the water slide.

2-a. Compute the simple rate of return expected from the water slide.

2-b. Based on the above computation, would the water slide be constructed if Mr. Sharkey requires a simple rate of return of at least 13% on all investments?

Yes

No

3-a. Compute the payback period for the water slide.

3-b. If Mr. Sharkey accepts any project with a payback period of five years or less, would the water slide be constructed?

Yes

No

After the first interview, ABC Telecom could not decide whom to hire as the new project manager. Since Tom did well in his first interview, he was invited back to attend the second interview. He was given the following problem to solve:  The company is bidding for a tender to install and commission a fibre communication network at the new headquarter for AIG Australia Ltd located on Park Street, Sydney. The new headquarter occupies five (5) floors in a 20-storey commercial building and has a combined floor area of 4,000 sq. metres.  As the project manager, Tom is asked by his supervisor to provide an estimate of how long the project might take since the client has requested this information specifically for the kick-off project meeting in a week’s time. Tom’s supervisor told him that what the client wants are probabilities of finishing the project within a specified period of time, such as in four (4) weeks, five (5) weeks, or six (6) weeks’ time, for instance. a) If you were Tom, what would be your approach in calculating these probabilities. To receive full marks, you must describe your approach fully. [10 Marks] b) Below are listed the figures which are needed to come up with the measures that he could report to the client. Project initiation, scoping and planning estimates  6 weeks: 10%  7 weeks: 50%  8 weeks: 40% Project execution, closure and handover estimates  10 weeks: 20%  11 weeks: 40%  12 weeks: 40% For his report to the client, Tom decided to present those measures in a tree diagram that highlighted the estimates. i. Please help Tom draw the tree diagram. [3 Marks] ii. What would be the chance of finishing the project within 16 weeks? 21 weeks? To receive full marks, you must show your steps clearly.

Identifying Influence Tactics Instructions: After reading the following passage, identify which influence tactics the leader is using, and explain your reasoning.

Gina is the director of human resources in a diversified company with approximately 50,000 workers. She has assembled her five direct reports in a hotel conference room for a Saturday morning meeting. With an intense facial expression, Gina launched directly into her presentation, supported by PowerPoint slides on a large screen.

“Enjoy your coffee, tea, juice, donuts, bagels, and pastries because I can offer you no other goodies this morning. As HR professionals, you know we are in trouble. As hard as we all work, and as much good as we do, our jobs are in peril. The trend is clear. Our corporation, similar to many others, might be outsourcing our work to HR vendors. The movement has already begun with payroll being outsourced last year and health insurance this year.

“Even worse, the corporate group is planning to purchase HR software that will enable line managers throughout the company to take care of their own HR responsibilities, such as recruiting and selection.

“I want to work with all of you to develop strategies and tactics so vital that the top-management team will decide to keep our group intact, and not join the outsourcing movement. We need also to discourage line managers from being performing HR on their own without our help. Think of HR activities so vital that we become indispensable. Maybe we should be coordinating a flu-shot program. Maybe we should beef up our wellness program so much that absenteeism and insurance costs are reduced to an extent that our contribution to the bottom line is obvious even to our chief financial officer.

“Now that I’ve told you the truth, let’s get started having a true dialogue about the challenges facing us.”

All public assembly venues share a common thread in their mission statements or public purpose: to fill all available seats or fill all meeting room and exhibit space as frequently as possible. Why not sell all of the seats or floor space? Some public assembly venues may have financial profit as their primary focus while others may concentrate more on providing programming that best serves the community’s needs. The concept of selling every seat may be literally applied to arenas. With respect to convention centers, the goal may be to attract convention and multi-day meetings that bring large numbers of out-of-town attendees who spend “new” money in the community, thereby stimulating the local economy. Of course it must be recognized that other types of public assembly venues may attract out-of-town audiences from outside the taxing jurisdiction who also spend “new” money.

National Recreation and Park Association Annual Convention

-rental fee (move-in, move-out, and event days) (approximate total rental fee of $45,000 food and beverage commissions (banquets, meeting-room breaks, etc.)

-rentals (exhibit materials, AV equipment, etc.)

-39 Labor charge-backs

Bruno Mars Concert

-Venue rental fee (6% of gross ticket sales) (average ticket price of $75)

-ticket service charges and commissions

-concessions commission (% of gross sales)

-merchandise commission (% of gross sales)

-broadcast origination fee (flat flee of 2,000)

-labor charge-backs

-parking revenue

-only limited room nights would be generated, as concert attendees will be mostly locals

Based on the information provided:

1. Determine which of the two events will generate the greater amount of ancillary revenues for the complex.
2. Determine which of the two events will create greater positive economic impact for the metropolitan community.
3. Formulate for the board of directors a written recommendation regarding which event should be confirmed. Include at least 3 persuasive points to support your recommendation.

The following table shows age distribution and location of a random sample of 166 buffalo in a national park.

Use a chi-square test to determine if age distribution and location are independent at the 0.05 level of significance.

(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: Age distribution and location are independent.
H₁: Age distribution and location are independent.

H₀: Age distribution and location are not independent.
H₁: Age distribution and location are independent.    

H₀: Age distribution and location are not independent.
H₁: Age distribution and location are not independent.

H₀: Age distribution and location are independent.
H₁: Age distribution and location are not independent.

(b) Find the value of the chi-square statistic for the sample. (Round the expected frequencies to at least three decimal places. Round the test statistic to three decimal places.)


Are all the expected frequencies greater than 5?

Yes

No

What sampling distribution will you use?

Student's t binomial    

chi-square

uniform

normal

What are the degrees of freedom?


(c) Find or estimate the P-value of the sample test statistic. (Round your answer to three decimal places.)


(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis of independence?

Since the P-value > α, we fail to reject the null hypothesis.

Since the P-value > α, we reject the null hypothesis.    

Since the P-value ≤ α, we reject the null hypothesis.

Since the P-value ≤ α, we fail to reject the null hypothesis.

(e) Interpret your conclusion in the context of the application.

At the 5% level of significance, there is sufficient evidence to conclude that age distribution and location are not independent.

At the 5% level of significance, there is insufficient evidence to conclude that age distribution and location are not independent.

ACCOUNTING INTERMEDIATE 2 On 1st January 2014 Alex company dealers of electronic products purchased a building for $8,000,000. Its estimated useful life at that date was 20 years and the company applies straight line depreciation method. On 31st December 2018, the government launched a plan to construct a flyover adjacent to the building and the related construction reduced the access to the building due to the inability to park and enter to the building. Due to this reason the value for the building decreased. The company estimated that they can sell the building for $4,700,000 but it has to incur a cost of $205,000. Alternatively, if it continues to use it the present value of the net cash flows that the building would generate is $5,200,000. In 2019 the government constructed a service road parallel to the highway which improved the recoverable amount to $6,000,000. The depreciation for the year 2019 is $440,000 Calculate the carrying amount, recoverable amount and the necessary journal entries for the above scenario. You are required to:

A.Calculate accumulated depreciation & carrying value as at 31st Dec 2018, applying IAS 36.

B. Calculated recoverable amount & Impairment loss as at 31st Dec 2018 applying IAS 36.

C. Record relevant journal entries as at 31st Dec 2018 applying IAS 36 and amount to be recognized in statement of financial position.

D. Calculated carrying amount and amount of appreciation in building as at 31st Dec 2019 applying IAS 36.

E. Record relevant journal entry for regain in the value of impaired asset as at 31st Dec 2019 applying IAS 36.

F. A customer has made a claim against Alex Company for injury suffered following the purchases and use of a defective electronic product. Legal advisers have confirmed that Alex Company will probably have to pay financial compensation of $50,000 to the customers. In turn, Alex Company has made a counter claim against the suppliers of the defective products for $50,000 and believes it is probable that its claim against the supplier will be successful. Justify with reasons what adjustments, if any, should be made by Alex Company in the financial statements.