Consider a four-year project with the following information: initial fixed asset investment = $490682; straight-line depreciation to zero over the four-year life; zero salvage value; price = $34; variable costs = $24; fixed costs = $196864; quantity sold = 79583 units; tax rate = 32 percent. Calculate the sensitivity of the OCF to changes in the quantity sold.
In: Finance
Compute the total quantity of heat (both in Kcal and J) required to raise the temperature of 1.00 kg of ice at -10.0 degrees C to 1.00 kg of steam at 110.0 degrees C. Assume no loss of mass or heat in this process. Note that this will requires several computations that must be completely added up, and you must include all phase changes and use the correct specific heats.
In: Physics
Certain technologies industries, such as the software development companies, are faced with constantly changing innovations, technologies, short product life cycles, modular designs, frequent manufacturing changes and demanding customers.
Under these conditions, what type of relationship would you recommend for a critical component supplier? And what additional measures would you include in this contract to protect your business and supplier relationships?
In: Operations Management
The combustion of acetylene C2H2 is a spontaneous reaction given by the equation: 2C2H2 (g) + SO2(g) --> 4CO2 (g) + 2 H2O(l)
As expected for a combustion the a combustion the reaction is exothermic.
a.) What is the sign of Delta H?
b.) What do you expect for the sign of Delta S?
c.) Explain the spontaneity of the reaction in terms of the enthalpy and entropy changes.
Please show work and explain
In: Chemistry
analyze the reasons why the short-term project that you have chosen might be ranked higher under the NPV criterion if the cost of capital is high, while the long-term project might be deemed better if the cost of capital is low. Determine whether or not changes in the cost of capital could ever cause a change in the internal rate of return (IRR) ranking of two (2) projects.
In: Accounting
Question 20. Consider a 2-year bond. The coupon rate of the bond is 10%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 8.0% annually, or 4.0% semi-annually.
a. What is the duration of the bond? (12 points)
b. If the semi-annually yield changes from 4.0% to 5.0%, what is the predicted change in the price of the bond using duration? (8 points)
In: Finance
Question: (Fair Value Hedge) Sarazan Company issues a 4-year, 7.5% fixed-rate interest only, nonprepayable $1,000,000
note payable on December 31, 2016. It changes the interest rate from a fixed to variable rate and enters into a swap
agreement with M&S Corp. The swap agreement specifies that Sarazan will receive a fixed rate at 7.5% and pay variable with
settlement dates that match the interest payments on the debt. Assume that interest rates have declined during 2017 and that
Sarazan received $13,000 as an adjustment to interest expense for the settlement at December 31, 2017. The loss related to the
debt (due to interest rate changes) was $48,000. The value of the swap contract increased $48,000.
Instructions
(a) Prepare the journal entry to record the payment of interest expense on December 31, 2017.
(b) Prepare the journal entry to record the receipt of the swap settlement on December 31, 2017.
(c) Prepare the journal entry to record the change in the fair value of the swap contract on December 31, 2017.
(d) Prepare the journal entry to record the change in the fair value of the debt on December 31, 2017.
In: Accounting
1. In its government-wide Statement of Net Assets, a government reported assets of $155 million, including $50 million in capital assets (net of depreciation), and liabilities of $80 million, including long-term debt of $60 million, $40 million of which was issued to acquire capital assets. In addition, $30 million was restricted for debt service and other purposes. The government's unrestricted net assets would be reported as:
A) $85 million.
B) $55 million.
C) $45 million.
D) $35 million.
2. A governmental fund’s Statement of Revenues, Expenditures, and Changes in Fund Balances reported expenditures of $40 million, including capital outlay expenditures of $11 million. Capital assets for that government cost $80 million, including land in the amount of $10 million. Depreciable assets are amortized over 10 years, on average. The reconciliation from governmental fund changes in fund balances to governmental activities change in net assets would reflect a(an):
A) $4 million increase.
B) $4 million decrease.
C) $3 million decrease.
D) $11 million decrease.
In: Accounting
Explain what happens to saving, investment, and the real interest rate in each of the following scenarios in a closed economy. Illustrate your answer using a saving-investment diagram. Label the axes and curves clearly.
a) Real money supply increases
b) The tax code changes so that business firms face higher tax rates on their revenue (offset by other lump-sum tax changes so there’s no overall change in tax revenue). The rise in taxes reduces desired investment, shifting the Id curve to the left: in equilibrium, this reduce real interest rate, reducing saving as well as investment.
c) Current output rises The rise in output raises desired saving, shifting the Sd curve to the right; in equilibrium, this reduces the real interest rate, increasing investment as well.
d) The average educational level rises, inducing an increase in the future marginal productivity of capital. The rise in future marginal productivity of capital raises desired investment, shifting the Id curve to the right; in equilibrium, this raises the real interest rate, increasing saving as well as investment.
In: Economics
Contribution Margin Analysis—Sales
Select Audio Inc. sells electronic equipment. Management decided early in the year to reduce the price of the speakers in order to increase sales volume. As a result, for the year ended December 31, the sales increased by $23,500 from the planned level of $1,228,500. The following information is available from the accounting records for the year ended December 31.
| Actual | Planned | Increase or (Decrease) | ||||
| Sales | $1,252,000 | $1,228,500 | $23,500 | |||
| Number of units sold | 31,300 | 27,300 | 4,000 | |||
| Sales price | $40 | $45 | $(5) | |||
| Variable cost per unit | $7 | $7 | $0 | |||
a. Prepare an analysis of the sales quantity and unit price factors. Use a minus sign for any negative amounts.
| Select Audio Inc. | ||
| Contribution Margin Analysis—Sales | ||
| For the Year Ended December 31 | ||
| Effect of changes in sales: | ||
| Sales quantity factor | $ | |
| Unit price factor | ||
| Total effect of changes in sales | $ | |
b. Did the price decrease generate sufficient
volume to result in a net increase in contribution margin if the
actual variable cost per unit was $7, as planned?
In: Accounting