Is "New" media really different?

So what do you think? Thinking about the ads you viewed and the readings, videos, and audio on "new" media, is the environment and conditions women face in “new” media really that different from “old” media? How? Why or why not?

Exercise 3.10 Identify suitable sub-processes in the process of Exercise 1.7 (page 31). Among these sub-processes, identify those that are specific to this process versus those that can potentially be shared with other processes of the same company

Exercise 1.7 Consider the following process at a company of 800 employees in the early 1990s. Almost any employee at the company can initiate a purchase request by filling in a form. The purchase request includes information about the goods to be purchased, the quantity, the desired delivery date, and the approximate cost. The employee can nominate a specific vendor. Employees often request quotes from vendors in order to get the required information. Completing the entire form can take a few days as the employee often does not have the required data. The quote is attached to the purchase request. This completed request is signed by two supervisors. One supervisor has to provide a financial approval, while the other supervisor has to approve the necessity of the purchase and its conformance with the company's policy (e.g., if purchasing a software tool, is it compatible with the company's standard IT operating environment?). Collecting the signatures from the two supervisors takes on average 5 days. If it is urgent, the employee can hand-deliver the form, otherwise it is circulated via internal mail. A rejected purchase request is returned to the employee. Sometimes, the employee makes minor modifications and resubmits the purchase request. Once a purchase request is approved, it is returned to the initiator of the request. The employee forwards the form to the purchasing department. Employees often make a copy of the form for their own record, in case the form gets lost. The purchasing department checks the completeness of the purchase request and returns it to the employee if it is incomplete. The purchasing department then enters the approved request into the company's enterprise system. If the employee has not nominated any vendors, a clerk at the Purchasing Department selects one based on the quotes attached to the purchase requisition, or based on the list of vendors (also called master vendor list) available in the company's enterprise system Sometimes, the quote attached to the request has expired in the meantime. In this case, an updated quote is requested from the corresponding vendor. Other times, the vendor who submitted the quote is not recorded in the company's enterprise system. In this case, the purchasing department should give preference to other vendors who are registered in the enterprise system. If no such vendors are available or if the registered vendors offer higher prices than the one in the submitted quote, the purchasing department can add the new vendor into the enterprise system. Then a vendor is selected, the enterprise system automatically generates a purchase order. The purchase purchase order is sent to the vendor by fax. A copy of the purchase order is sent to the counts payable office. This office, part of the financial department, uses an accounting system that is not integrated with the enterprise system, where purchase orders are stored. The goods are al poods are always delivered to the goods receipt department. When goods are received, at this department selects the corresponding purchase order in the enterprise system. clerk checks the quantity and quality, and generates a document called goods receipt from the purchase order stored in the enterprise system. The goods are forwarded to "ployee who initiated the purchase requisition. A print out of the goods receipt form is to the accounts payable office. If there are any issues with the goods, they are returned 1 Introduction to Business Process Management to the vendor and a note is sent to the purchasing department and to the accounts payable office for archival. The vendor eventually sends the invoice directly to the accounts payable office. A clerk at this office compares the purchase order, the goods receipt and the invoice. This latter task is called three-way matching. Three-way matching is time-consuming because the clerk needs to carefully investigate each discrepancy. The payment process takes so long that the company often misses the deadline for invoice payment and has to pay a penalty. At the end, the clerk triggers the bank transfer and sends a payment notice to the vendor. Some vendors explicitly indicate in their invoice the bank account number to which the transfer should be made. It happens that the bank account number and name indicated in the invoice differ from the one recorded in the vendor database. Sometimes payments bounce back, in which case the vendor is contacted by phone, email or postal mail. If new bank details are given, the transfer is attempted again. If the issue is still not resolved, the accounts payable office has to contact again the vendor in order to trace the cause of the bounced payment.

Pls show the process.

Cliff’s Canister Corp. (CCC) makes industrial canisters for the petro-chemical industry and is considering building a new plant. CCC has existing land for the plant that they paid $120,000 three years ago, but believe they believe they can only sell for $100,000 today. The new plant will require investing $400,000 in new equipment. The equipment will be depreciated to zero over the 4-year life of the project and the equipment will have a salvage value of $100,000 at the end of the project. Additionally, the new plant will require an additional investment in inventory of $20,000. CCC just finished a $40,000 environmental impact study for the proposed factory. If they build the new factory, CCC believes it can sell 1,000 new canisters every year over the 4 year life of the project. The canisters have a sales price of $200 each and a variable cost of $60 each. CCC’s cost of capital (discount rate) is 15% and their tax rate is 30%.

What is the IRR of the project?

What is the NPV of the project (round to the nearest dollar)?

Should CCC accept the new project?

A study was conducted to investigate whether a new diet lowers cholesterol. The researchers took a random sample of 100 subjects with high cholesterol and measured the cholesterol levels for each. Then each subject began the new diet as instructed. After six months, the subjects' cholesterol levels were measured again. The differences in cholesterol level, calculated as After - Before, follow an approximately normal distribution. Suppose a 99% confidence interval for the mean cholesterol difference is (-13.89, -7.66). Which of the following is a correct interpretation of this interval?

Nuke-A-Bird, Inc. sells frozen chicken meals. The company needs to purchase some new freezers for storing inventory. If the freezers are purchased, they will replace old freezers purchased 10 years ago for $105,000, and these are being depreciated on a straight-line basis to a zero book value (15-year depreciable life). The old freezers can be sold for $60,000 today, and $2,000 in 5 years. The new freezers will cost $200,000 installed and will be depreciated on a straight-line basis to a book value of 0. The new freezers will have a salvage value of $25,000 at the end of the 5th year. The firm expects to increase its pre-tax revenues by $50,000 per year if the new freezers are purchased, but cash expenses will also increase by $6,000 because the new freezers require greater electrical expense. If the firm's cost of capital is 10 percent and its tax rate on income and capital gains is 34%, what is the NPV of the new freezers?

a) What is the annual difference in the FCFF from the new project?

b) What is the NPV of the replacement decision?

Toledo Corp owns construction equipment worth $1.5M and has $500M in cash. Toledo Corp takes out a 5-year loan for $1M. Toledo Corp finances the construction of a new building entirely with cash. The cost of the construction is $1.5M. Please fill out Toledo Corp’s balance sheets shown below. The first balance sheet is before developing the new building and the second balance sheet is after developing the new building.

ANSWER

Toledo Corp’s balance sheets after taking the loan Before constructing the new building:

After constructing the new building:

Toledo Corp sells the building to Bechtel for 20,000 Bechtel shares @ $100/share. Please fill out Toledo Corp’s balance sheet after proceeds from the sale of the new building to Bechtel:

Your company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine that costs $300,000 and has an estimated useful life of five years and a salvage value of 10% of its original cost. All sales will end up being for cash and all costs are out-of-pocket costs except for depreciation on the new machine. Additional information includes the following:

Required:

1. What is the payback period for this product?
2. Briefly describe the 2 major limitations of the payback method.
3. Prepare a net present value (NPV) analysis for the proposed product.
4. What is the internal rate of return (IRR) for the proposed product?
5. Based on the above findings, should the new product be approved? Why or why not?

The human resources department of a consulting firm gives a standard creativity test to a randomly selected group of new hires every year. This year, 80 new hires took the test and scored a mean of 112.9 points with a standard deviation of 13.8. Last year, 60 new hires took the test and scored a mean of 117.1 points with a standard deviation of . 15.3 Assume that the population standard deviations of the test scores of all new hires in the current year and the test scores of all new hires last year can be estimated by the sample standard deviations, as the samples used were quite large. Construct a 95% confidence interval for µ1-µ2 , the difference between the mean test score µ1 of new hires from the current year and the mean test score µ2 of new hires from last year. Then complete the table below.

Carry your intermediate computations to at least three decimal places. Round your answers to at least two decimal places.

1) HSB Co. manufactures construction materials and has decided to expand operations.
     The new operation is expected to increase EBIT from the current level of $750 000
     to $1 million per annum. HSB Co. has a capital structure that utilizes bonds,
     ordinary equity and preference shares. The $500 000 of issued bonds pay 7% per
     annum. Preference shares pay an annual fixed dividend of $75 000. The company
     has 1 000 000 ordinary shares that are trading at $5 per share. Corporate tax rate is

18.5%.

a) HSB Co needs to raise $800 000 to fund the expansion. Assuming the company
      can issue new shares at the current market price, what is the impact on EPS if new
      shares are issued to fund the expansion?

b) If new debt can be raised at 9% interest rate, what is the impact on EPS of using
      debt rather than a new equity issue?

c) Calculate the EPS indifference point of New Equity plan and New Debt Plan.

Pooh Industries is contemplating purchasing a new machine that will significantly improve the efficiency of their operations. To date the company has spent $15,000 evaluating the machine to better determine annual operating savings from using the machine. The new machine would cost $800,000 and would be depreciated over an expected life of 8 years to a $40,000 salvage value using the straight-line method. Pooh forecasts that the new machine would reduce operating expenses by $200,000 per year. The firm's marginal tax rate is 40% and its WACC (which is the appropriate rate to use for evaluating this machine) is 15%. Pooh estimates that the new machine could be sold at the end of its life (i.e., in 8 years) for salvage value (i.e., $40,000). The new machine would require additional net working capital of $90,000 which will be recovered at the end of the project. The company will hire a new mechanic for maintenance of the machine as well as for other duties related to this project. This new employee will cost the company $75,000 per year (this amount is not included in the operating cost change listed above). What is this project’s NPV?