Questions
If efficiency is improved, can the middlemen earn their keep by providing value for the cost...

If efficiency is improved, can the middlemen earn their keep by providing value for the cost they add?

In: Operations Management

Determine if Project B can be included in the capital budget, if the cost of your...

Determine if Project B can be included in the capital budget, if the cost of your initial investment is 11% and generates the following cash flows:

    Project B
0 -125
1 20
2 30
3 50
4 50
5 60
       
a. Can be selected as its IRR is 8%.
       
b. Should not be selected, as your IRR is less than the capital cost of the initial investment
       
c. Must not be selected, your MIRR is 10%.
       
d.Can be selected, because it has an NPV of $30.47
       
e. Can be selected because it has a PI of $1.18

In: Finance

IN JAVA(NETBEANS) PLEASE: The cost to become a member of a fitness center is as follows:...

IN JAVA(NETBEANS) PLEASE:

The cost to become a member of a fitness center is as follows: (a) the Senior citizens discount is 30%; (b) if the membership is bought and paid for 12 or more months in advance, the discount is 15%; or (c) if more than 5 personal training sessions are purchased, the discount on each session is 20%. Write a menu driven program that determines the cost of a new membership. Your program must contain a method that displays the general information about the fitness center and its charges, a method to get all the necessary information to determine the membership cost, and a method to determine the membership cost. Use appropriate parameters to pass information in and out of a method. Implement the program as specified below: METHOD displayGeneralInformation - displays all of the costs and asks for the age Welcome to Fitness Center Service Costs 3 month membership $350 6 month membership $600 Java Programming: From Problem Analysis to Program Design 7-2 1 year membership $1000 (15% discount if paid in full) Personal training sessions $80/hour for each session (20% discount on each session if more than 5 sessions are purchased) ***If you are 55 years or older, you will receive a 30% discount Please enter your age: METHOD getDataMenu - shows the menu and returns the value entered 1. Purchase Membership 2. Purchase Sessions Choose from the Menu: METHOD: getMembershipCost If option 1 from menu above entered: A- 3 month membership $350 B- 6 month membership $600 C- 1 year membership $1000 (15% discount if paid in full) Choose your membership level: METHOD: getTrainingSessionsCost - returns training session cost If option 2 entered: Enter the number of sessions you would like to purchase: METHOD: totalMembershipCost Your total membership cost is: $…… Note: Senior citizens who buy a 12 month membership and pay in full will first receive 30% off the 1,000 and then 15% off the remaining balance. Senior citizens also receive 15% off training sessions. Discussion the 20% off first if more than 5 sessions and then discount the 15% from the balance.

In: Computer Science

The Two Dollar Store has a cost of equity of 10.9 percent, the YTM on the...

The Two Dollar Store has a cost of equity of 10.9 percent, the YTM on the company's bonds is 5.6 percent, and the tax rate is 40 percent. If the company's debt–equity ratio is .45, what is the weighted average cost of capital?

a-8.56%

b- 9.13%

c- 5.70%

d- 8.21%

e- 7.53% (NOT CORRECT)

Dyrdek Enterprises has equity with a market value of $12.7 million and the market value of debt is $4.50 million. The company is evaluating a new project that has more risk than the firm. As a result, the company will apply a risk adjustment factor of 2.2 percent. The new project will cost $2.58 million today and provide annual cash flows of $671,000 for the next 6 years. The company's cost of equity is 11.83 percent and the pretax cost of debt is 5.07 percent. The tax rate is 35 percent. What is the project's NPV?

a- $192,088 .(NOT CORRECT)

b- $377,207

c- $579,510

d- $194,678

e- $158,451

In: Accounting

explain how to estimate the cost of capital. How to adjust for the effect of leverage...

explain how to estimate the cost of capital.

How to adjust for the effect of leverage on the cost of equity (unlevered Beta)?

Should we use book or market value to determine the weights?

In: Finance

The Baldwin Company is considering investing in a machine that produces bowling balls. The cost of...

The Baldwin Company is considering investing in a machine that produces bowling balls. The cost of the machine is $100,000 and production is expected to be 8,000 units per year during the five-year life of the machine. The expected resale value is $5,000 (in real terms).
Since the interest in bowling is declining, the management believes that the nominal price of bowling balls will increase at only 2% per year. The nominal price of bowling balls in the first year will be $20. On the other hand, plastic used to produce bowling balls is rapidly becoming more expensive. Because of this, production costs are expected to grow at 10% (nominally) per year. First-year nominal production costs will be $10 per unit.
The company's nominal cost of capital is 15%. The rate of inflation is 5%. Ignore taxes. Should the project be undertaken?

Please give me a answer with equations and step by step solutions so that I can understand.

In: Finance

GXY Corp. has a WACC of 15%, a cost of debt capital of 5%, and a...

GXY Corp. has a WACC of 15%, a cost of debt capital of 5%, and a market value debt-to-equity ratio of 0.10. GXY Corp. is not subject to taxation. Suppose that GXY Corp. increased it market value debt-to-equity ratio to 0.35, What will be the change in GXY Corp’s WACC? Enter your answer as a percent; do not include the % sign. Round your final answer to two decimals.

In: Finance

the college bookstore says that the average cost of textbooks is $52 with a standard deviation...

the college bookstore says that the average cost of textbooks is $52 with a standard deviation of $4.50. a group of skeptical statistics students want to test the bookstore’s claim with a sample of 100 books, and find a mean of $53. a) what decision should the students make if they set alpha to .01?

b.) Compare and contrast the benefits and drawbacks of having a high alpha level vs. a low alpha level. What are some of the practical/real world implications of either setting an alpha level too high (i.e., .1) or too low (i.e., .001) in your study/analysis?

In: Math

Suppose that the cost function of a firm is c(y) = 3y2+ 75. (a) What are...

Suppose that the cost function of a firm is c(y) = 3y2+ 75.

(a) What are the fixed costs and variable costs?

(b) Determine the minimum average cost. Derive and sketch in a diagram the average variable cost (AVC), marginal cost (MC), and average cost (AC).

(c) Derive the supply curve.

(d) When the market price is 45, what are the quantity supplied and profit / loans?

(e) When the market price s 15, what ane the quantity supplied and profit / loss?

In: Economics

A company with a tax rate of 40% borrows $100M from lender A at a cost...

A company with a tax rate of 40% borrows $100M from lender A at a cost of 8% and $300M from lender B at a cost of 6%. What is the firm’s aggregate cost of borrowing (a) before taxes; and (b) after taxes?

In: Finance