Harriet Moore is an accountant for New World Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months, Harriet has noticed that a great deal of funds have been spent on a particular project for a new drug. She hears “through the grapevine” that the company is about to patent the drug and expects it to be a major advance in antibiotics. Harriet believes that this new drug will greatly improve company performance and will cause the company’s stock to increase in value. Harriet decides to purchase shares of New World in order to benefit from this expected increase.

Required:

Identify ethical dilemmas Harriet faces, if any, with respect to the information she has learned through her duties as an accountant for New World Pharmaceuticals. What are the implications of her planned purchase of New World shares?

Harriet Moore is an accountant for New World Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months, Harriet has noticed that a great deal of funds have been spent on a particular project for a new drug. She hears “through the grapevine” that the company is about to patent the drug and expects it to be a major advance in antibiotics. Harriet believes that this new drug will greatly improve company performance and will cause the company’s stock to increase in value. Harriet decides to purchase shares of New World in order to benefit from this expected increase.

Required:

Identify ethical dilemmas Harriet faces, if any, with respect to the information she has learned through her duties as an accountant for New World Pharmaceuticals. What are the implications of her planned purchase of New World shares?

A small solid sphere of mass M₀, of radius R₀, and of uniform density ρ₀ is placed in a large bowl containing water. It floats and the level of the water in the dish is L. Given the information below, determine the possible effects on the water level L, (R-Rises, F-Falls, U-Unchanged), when that sphere is replaced by a new solid sphere of uniform density.

The new sphere has mass M = M₀ and radius R > R₀
The new sphere has radius R = R₀ and density ρ > ρ₀
The new sphere has radius R < R₀ and mass M = M₀
The new sphere has mass M < M₀ and density ρ = ρ₀
The new sphere has density ρ < ρ₀ and radius R > R₀
The new sphere has density ρ = ρ₀ and mass M > M₀

5) Anderson Equipment Manufacturing produces equipment for the natural gas industry. The company management is considering purchasing new controllers for the fabricating machines. The new controllers are expected to increase efficiency and product quality. The engineering staff estimate that annual net cash savings from increased efficiency will be $35,000 per year for four years. The existing controllers can be sold for $8,000. The new controllers have a purchase price of $75,000 and will require installation costs in the amount of $4,500. The annual software contract for the new controllers is $1,700; the controllers will be depreciated using the straight-line method. The salvage value of the new controllers at the end of four years is estimated to be $10,000. The company has a required rate of return of 15%.

Required:

1. Determine the net present value of the investment in the new controllers.
2. Estimate the internal rate of return (within a 5% range) of the investment in the new controllers.

An existing 36-inch diameter concrete gravity sewer installed on a slope of 0.25% currently conveys a peak flow rate of 12 cfs. A builder proposes to connect a new residential development to this existing sewer. Projected peak flow from this new development is 4 cfs.

a) Depth of flow in sewer before new development is connected

b) Depth of flow in sewer after new development is connected

c) Flow velocity in sewer after new development is connected

d) Flow type (critical, subcritical or supercritical) after new development is connected

e) Diameter of a sewer to convey combined peak flow of 16 cfs if maximum allowable D/d is 0.85 (i.e. assume you are designing new sewer on the same 0.25% slope)

Please show all work. Thank you so much in advance!

A small solid sphere of mass M₀, of radius R₀, and of uniform density ρ₀ is placed in a large bowl containing water. It floats and the level of the water in the dish is L. Given the information below, determine the possible effects on the water level L, (R-Rises, F-Falls, U-Unchanged), when that sphere is replaced by a new solid sphere of uniform density.

The new sphere has mass M = M₀ and density ρ < ρ₀

The new sphere has radius R > R₀ and density ρ = ρ₀
The new sphere has radius R > R₀ and density ρ < ρ₀

The new sphere has density ρ = ρ₀ and mass M < M₀

The new sphere has radius R = R₀ and mass M < M₀

The new sphere has mass M = M₀ and radius R < R₀

A small solid sphere of mass M₀, of radius R₀, and of uniform density ρ₀ is placed in a large bowl containing water. It floats and the level of the water in the dish is L. Given the information below, determine the possible effects on the water level L, (R-Rises, F-Falls, U-Unchanged), when that sphere is replaced by a new solid sphere of uniform density.

The new sphere has radius R > R₀ and density ρ < ρ₀

The new sphere has radius R = R₀ and mass M < M₀

The new sphere has mass M < M₀ and density ρ = ρ₀

The new sphere has density ρ = ρ₀ and mass M > M₀

The new sphere has mass M = M₀ and density ρ > ρ₀

The new sphere has mass M = M₀ and density ρ < ρ₀

Scenario

Shoals Corporation puts significant emphasis on cash flow when planning capital investments. The company chose its discount rate of 8 percent based on the rate of return it must pay its owners and creditors. Using that rate, Shoals Corporation then uses different methods to determine the most appropriate capital outlays.

This year, Shoals Corporation is considering buying five new backhoes to replace the backhoes it now owns. The new backhoes are faster, cost less to run, provide for more accurate trench digging, have comfort features for the operators, and have 1-year maintenance agreements to go with them. The old backhoes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skills to use the new backhoes.

The following information is available to use in deciding whether to purchase the new backhoes:

Instructions

1. Evaluate, discuss, and compare whether to purchase the new equipment or overhaul the old equipment. (Hint: For the old machine, the initial investment is the cost of the overhaul. For the new machine, subtract the salvage value of the old machine to determine the initial cost of the investment.)

• Calculate the net present value of the old backhoes and the new backhoes.
• Discuss the net present value of each, including what the calculations reveal about whether the company should purchase the new backhoes or continue using the old backhoes.
• Calculate the payback period for keeping the old backhoes and purchasing the new backhoes. (Hint: For the old machines, evaluate the payback of an overhaul.)
• Discuss the payback method and what the payback periods of the old backhoes and new backhoes reveal about whether the company should purchase new backhoes or continue using the old backhoes. Calculate the profitability index for keeping the old backhoes and purchasing new backhoes.
• Discuss the profitability index of each, including what the calculations reveal about whether the company should purchase the new backhoes or continue using the old backhoes.

2. Identify and discuss any intangible benefits that might influence this decision.
3. Answer the following: Should the company purchase the new backhoes or continue using the old backhoes? Explain your decision.

Project: Evaluate the Capital Investment Scenario Shoals Corporation puts significant emphasis on cash flow when planning capital investments. The company chose its discount rate of 8 percent based on the rate of return it must pay its owners and creditors. Using that rate, Shoals Corporation then uses different methods to determine the most appropriate capital outlays. This year, Shoals Corporation is considering buying five new backhoes to replace the backhoes it now owns. The new backhoes are faster, cost less to run, provide for more accurate trench digging, have comfort features for the operators, and have 1-year maintenance agreements to go with them. The old backhoes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skills to use the new backhoes. The following information is available to use in deciding whether to purchase the new backhoes: Old Backhoes New Backhoes Purchase cost when new $90,000 $200,000 Salvage value now $42,000 Investment in major overhaul needed in next year $55,000 Salvage value in 8 years $15,000 $90,000 Remaining life 8 years 8 years Net cash flow generated each year $30,425 $43,900

Instructions

1. Evaluate, discuss, and compare whether to purchase the new equipment or overhaul the old equipment. (Hint: For the old machine, the initial investment is the cost of the overhaul. For the new machine, subtract the salvage value of the old machine to determine the initial cost of the investment.)

Calculate the net present value of the old backhoes and the new backhoes.

Discuss the net present value of each, including what the calculations reveal about whether the company should purchase the new backhoes or continue using the old backhoes.

Calculate the payback period for keeping the old backhoes and purchasing the new backhoes. (Hint: For the old machines, evaluate the payback of an overhaul.)

Discuss the payback method and what the payback periods of the old backhoes and new backhoes reveal about whether the company should purchase new backhoes or continue using the old backhoes.

Calculate the profitability index for keeping the old backhoes and purchasing new backhoes.

Discuss the profitability index of each, including what the calculations reveal about whether the company should purchase the new backhoes or continue using the old backhoes.

2. Identify and discuss any intangible benefits that might influence this decision.

3. Answer the following: Should the company purchase the new backhoes or continue using the old backhoes?

Explain your decision.

The text suggests a variety of places that entrepreneurs and business leaders find their ideas for a new enterprise. What do you do to “fire up your idea machine”? Where have you found good ideas for a new venture?

In your initial post, describe how you have motivated yourself to find new ideas and the idea that you are considering for your new venture. Respond to ideas presented by other members of the class, asking questions that will guide their thinking toward selection of their new venture.