Questions
Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio...

Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .75. It’s considering building a new $47 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $5.9 million in perpetuity. The company raises all equity from outside financing. There are three financing options:

1.

A new issue of common stock: The flotation costs of the new common stock would be 7.7 percent of the amount raised. The required return on the company’s new equity is 15 percent.

2.

A new issue of 20-year bonds: The flotation costs of the new bonds would be 3.3 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 5.6 percent, they will sell at par.

3.

Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .10. Assume there is no difference between the pretax and aftertax accounts payable costs.

What is the NPV of the new plant? Assume that PC has a 23 percent tax rate. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)

NPV

In: Finance

Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio...

Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .75. It’s considering building a new $47 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $5.9 million in perpetuity. The company raises all equity from outside financing. There are three financing options:

1.

A new issue of common stock: The flotation costs of the new common stock would be 7.7 percent of the amount raised. The required return on the company’s new equity is 15 percent.

2.

A new issue of 20-year bonds: The flotation costs of the new bonds would be 3.3 percent of the proceeds. If the company issues these new bonds at an annual coupon rate of 5.6 percent, they will sell at par.

3.

Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, it has no flotation costs and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .10. Assume there is no difference between the pretax and aftertax accounts payable costs.

What is the NPV of the new plant? Assume that PC has a 23 percent tax rate. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)

***Note: Answer is NOT $5,567,662

In: Finance

Step 1 Picture yourself as a Senior Product Manager in your favorite industry. This could be...

Step 1 Picture yourself as a Senior Product Manager in your favorite industry. This could be high-tech, financial services, consumer products, electronics, automobiles, restaurants, food services, etc. Choose an industry with which you are familiar. Sit quietly and brainstorm with yourself about a possible new product idea. This does not have to be completely original. It could be as simple as a new flavor of ice cream, a new feature on a hair dryer or a new color iPod/iPad.

Step 2 Create a post describing your new product idea. Be as specific as possible and provide as much detail as you can so that other's reading your post can understand your idea in sufficient detail so as to comment on it. Be sure to state who the product idea is targeted to, that is, who you expect to buy it. How will the new product compare and compete with similar, currently available products? How can labeling and package design help? Consider the labeling for the new product idea. What restrictions and legal requirements have to be fulfilled? Consider the packaging for the new product ideas. If applicable, what sizes will be available? How will the packaging help the product to stand out? How will the packaging help prevent or deter theft? Feel free to attach images to your post, or include links to similar products that might have similar characteristics to the new one you are developing.

In: Operations Management

Write a JavaFX application that presents a button and a circle. Every time the button is...

Write a JavaFX application that presents a button and a circle. Every time the button is pushed, the circle should be moved to a new random location within the window.

This must only be one .java file. I cannot use

import javafx.geometry.Insets;

import javafx.scene.canvas.Canvas;

import javafx.scene.canvas.GraphicsContext;

import javafx.scene.layout.HBox;

This is what I have so far:

import javafx.application.Application;
import javafx.event.ActionEvent;
import javafx.event.EventHandler;
import javafx.geometry.Pos;
import javafx.scene.Group;
import javafx.scene.Scene;
import javafx.scene.control.Button;
import javafx.scene.shape.Circle;
import javafx.scene.paint.Color;
import javafx.stage.Stage;

public class CircleJumper extends Application
{
public double circlePositionX = 300;
public double circlePositionY = 300;
  
@Override
   public void start(Stage primaryStage)
{
Circle circle = new Circle(circlePositionX, circlePositionY, 70);
circle.setFill(Color.BLUE);

//create button to create new circle
Button push = new Button("PRESS!");
push.setOnAction(this::processButtonPress);
  
  
Group root = new Group(circle, push);
Scene Scene = new Scene(root, 700, 500, Color.WHITE);
  
       primaryStage.setTitle("Circle Jumper"); // Set the stage title
       primaryStage.setScene(Scene); // Place the scene in the stage
       primaryStage.show(); // Display the stage
   }
  
public void processButtonPress(ActionEvent event)
{   
Circle circle = new Circle(Math.random(), Math.random(), 50);
circle.setFill(Color.BLUE);
Group root = new Group(circle);
Scene Scene = new Scene(root, 700, 500, Color.WHITE);
}
  
public static void main(String[] args)
{
launch(args);
}

In: Computer Science

Step 1 Picture yourself as a Senior Product Manager in your favorite industry. This could be...

Step 1

Picture yourself as a Senior Product Manager in your favorite industry.

  • This could be high-tech, financial services, consumer products, electronics, automobiles, restaurants, food services, etc.
  • Choose an industry with which you are familiar.
  • Sit quietly and brainstorm with yourself about a possible new product idea.
  • This does not have to be completely original. It could be as simple as a new flavor of ice cream, a new feature on a hair dryer or a new color iPhone/iPad.

Step 2

Create a post describing your new product idea.

  • Be as specific as possible and provide as much detail as you can so that other's reading your post can understand your idea in sufficient detail so as to comment on it. Be sure to state who the product idea is targeted to, that is, who you expect to buy it.
  • How will the new product compare and compete with similar, currently available products? How can labeling and package design help?
  • Consider the labeling for the new product idea. What restrictions and legal requirements have to be fulfilled?
  • Consider the packaging for the new product ideas. If applicable, what sizes will be available? How will the packaging help the product to stand out? How will the packaging help prevent or deter theft?
  • Feel free to attach images to your post, or include links to similar products that might have similar characteristics to the new one you are developing.

In: Operations Management

The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2017.

The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2017.

1. Paid $5,000 of accrued taxes at time plant site was acquired.

2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit.

3. Paid $850 sales taxes on new delivery truck.

4. Paid $17,500 for parking lots and driveways on new plant site.

5. Paid $250 to have company name and advertising slogan painted on new delivery truck.

6. Paid $8,000 for installation of new factory machinery.

7. Paid $900 for one-year accident insurance policy on new delivery truck.

8. Paid $75 motor vehicle license fee on the new truck.

 

Instructions

(a) Explain the application of the historical cost principle in determining the acquisition cost of plant assets.

(b) List the numbers of the foregoing transactions, and opposite each indicate the account title to which each expenditure should be debited.

 

 

In: Accounting

WACC and NPV. Photochronograph Corporation (PC) manufacturestime series photographic equipment. It is currently at its...

WACC and NPV. Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt–equity ratio of .45. It’s considering building a new $37 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $5.1 million in perpetuity. There are three financing options:

  1. A new issue of common stock: The required return on the company’s new equity is 15 percent.

  2. A new issue of 20-year bonds: If the company issues these new bonds at an annual coupon rate of 7 percent, they will sell at par.

  3. Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .15. (Assume there is no difference between the pretax and aftertax accounts payable cost.)

What is the NPV of the new plant? Assume that the company has a 35 percent tax rate.

In: Finance

EXCEL TEMPLATE) Watchstone Concrete Products issued 30-year maturity bonds 15 years ago with a coupon rate...

EXCEL TEMPLATE) Watchstone Concrete Products issued 30-year maturity bonds 15 years ago with a coupon rate of 10.75%. The principal amount was $15,000,000. Interest rates have steadily decreased and the company could issue new bonds today at a coupon rate of 9.50%. The new issue would be used to pay off the old bonds and would have a maturity of 15 years. The original issue had flotation costs of $375,000 which were set up on an amortization schedule over 30 years with equal amounts each year. The old bonds are callable with a premium of 4.5%. An investment banking firm would charge a flotation fee of $225,000 on the new issue that would be amortized over the life of the new bonds. Rover’s marginal tax rate is 25%. Calculate the NPV of the bond refund

a.Old and nwe Bond Principal?

b.Old and new Bond Interest Rate?

c.Old and new Bond Flotation Cost?

d.Old and new Bond Maturity (Years)?

e.Tax Rate?

f.Call Premium Rate?

In: Finance

Hughes Corporation is considering replacing a machine used in the manufacturing process with a new

Hughes Corporation is considering replacing a machine used in the manufacturing process with a new, more efficient model. The purchase price of the new machine is $150,000 and the old machine can be sold for $100,000. Output for the two machines is identical; they will both be used to produce the same amount of product for five years. However, the annual operating costs of the old machine are $18,000 compared to $10,000 for the new machine. Also, the new machine has a salvage value of $25,000, but the old machine will be worthless at the end of the five years. You are deciding whether the company should sell the old machine and purchase the new model. You have determined that an 8% rate properly reflects the time value of money in this situation and that all operating costs are paid at the end of the year. For this initial comparison you ignore the effect of the decision on income taxes. 

 

Required: 

1. What is the incremental cash outflow required to acquire the new machine?

2. What is the present value of the benefits of acquiring the new machine?

In: Accounting

Bronson manufacturing is considering replacing an existing production line with a new line that has a...

Bronson manufacturing is considering replacing an existing production line with a new line that has a greater output capacity and operates with less labor than the existing line. The new line would cost $1 million, have a five-year life, and be depreciated using straight line method. At the end of five years, the new line would be sold as scrap for $200,000 (in year 5 dollars). Because the new line is more automated, it would require fewer operators, resulting in a saving of $40,000 per year before tax & unadjusted for inflation (in today’s dollars). Additional sales with the new machine are expected to result in additional net cash inflows, before tax, of $60,000 per year (in today’s dollars). If Bronson invests in the new line, a one-time investment of $10,000 in additional working capital will be required. The tax rate is 30%, the opportunity cost of capital is 10% and the annual rate of inflation is 3%.

Required:

What is the net present value of the new production line?

Please show your calculations clearly.

In: Finance