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We are evaluating a project that costs $800,000, has a life of 8 years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 60,000 units per year. Price per unit is $40, variable cost per unit is $20, and fixed costs are $800,000 per year. The tax rate is 21 percent and we require a return of 11 percent on this project. |
| a. |
Calculate the accounting break-even point. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
| b-1. | Calculate the base-case cash flow and NPV. (Do not round intermediate calculations and round your NPV answer to 2 decimal places, e.g., 32.16.) |
| b-2. | What is the sensitivity of NPV to changes in the sales figure? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) |
| c. | What is the sensitivity of OCF to changes in the variable cost figure? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
In: Finance
Part 1
Here is some code:
def foo(var):
var = []
var.append("hello")
var.append("world")
list = ["bah"]
foo(list)
print(list)
Which Option is correct?
A) ["hello","world"] is output because python passes the list by reference and the list is changed inside the function.
B) ["bah"] is output because python passes the list by value so changes to the list in the function are made to a separate list than the one that is passed in.
C) ["bah"] is output because python passes the list by reference but a new reference is created by the first line in the function so subsequent changes are made to a separate list than the one that is passed in.
Part 2
Consider this code:
list1 = []
list2 = list1
list2.append(1)
list2.append(2)
list1.append(3)
Which option is correct?
A) list1 contains [3] and list2 contains[1,2]
B) list1 contains [3] and list2 references the same list as list1
C) list1 contains [1,2,3] and list2 references the same list as list1
D) list2 contains [1,2,3] and list1 also contains [1,2,3] but the 3 is stored in a different location than list2
In: Computer Science
Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. Round your answers to the nearest cent. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.)
Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.
In: Accounting
A 37-year patient comes into the urgent care and presents with chest pain and hyperventilation. During the assessment process, his vitals are recorded, a brief health history is recorded, he is inspected visually from head to toe, asked about current medications and his chief complaints are addressed. Asking him to breathe through pursed lips or into cupped hands alleviates his hyperventilation. He was also given the option to hold his breath for 10-15 seconds at a time. After lying down for a few minutes, there was little relief for his chest pains therefore an ECG was conducted Recurring panic attacks and high levels of anxiety characterize panic disorder. Panic attacks can occur without warning or stressor however the patient mentioned being stressed due to taking on more responsibilities at work. He was diagnosed with panic attacks and prescribed paroxetine daily and lorazepam prn.
Two stress reducing techniques are medication and psychotherapy or cognitive behavior therapy. CBT is a model that challenges negative thinking and behaviors. It is rooted in the idea that attitude impacts behavior (Plehn, 2002). The meditation was not effective whereas the cognitive behavior therapy proved effective. I believe CBT helped because it allowed the patient to share his feelings in a structured yet intimate environment opposed to being alone with meditation. The patient was reminded that each treatment plan is personalized, to remain compliant with his medications, and continue to ask questions.
Respond and explain if you agree or disagree with how they would handle a client who was having severe anxiety. If you do not agree, please provide how they could have approached the client differently, and provide supporting rationale and citations. in 5 paragraph
In: Nursing
A 37-year patient comes into the urgent care and presents with chest pain and hyperventilation. During the assessment process, his vitals are recorded, a brief health history is recorded, he is inspected visually from head to toe, asked about current medications and his chief complaints are addressed. Asking him to breathe through pursed lips or into cupped hands alleviates his hyperventilation. He was also given the option to hold his breath for 10-15 seconds at a time. After lying down for a few minutes, there was little relief for his chest pains therefore an ECG was conducted Recurring panic attacks and high levels of anxiety characterize panic disorder.
Panic attacks can occur without warning or stressor however the patient mentioned being stressed due to taking on more responsibilities at work. He was diagnosed with panic attacks and prescribed paroxetine daily and lorazepam prn. Two stress reducing techniques are medication and psychotherapy or cognitive behavior therapy. CBT is a model that challenges negative thinking and behaviors. It is rooted in the idea that attitude impacts behavior (Plehn, 2002). The meditation was not effective whereas the cognitive behavior therapy proved effective. I believe CBT helped because it allowed the patient to share his feelings in a structured yet intimate environment opposed to being alone with meditation. The patient was reminded that each treatment plan is personalized, to remain compliant with his medications, and continue to ask questions.
Respond and explain if you agree or disagree with how they would handle a client who was having severe anxiety. If you do not agree, please provide how they could have approached the client differently, and provide supporting rationale and citations. in 5 paragraph
In: Nursing
Mist (airborne droplets or aerosols) is generated when metal-removing fluids are used in machining operations to cool and lubricate the tool and work-piece. Mist generation is a concern to OSHA, which has recently lowered substantially the workplace standard. The article "Variables Affecting Mist Generation from Metal Removal Fluids" (Lubrication Engr., 2002: 10-17) gave the accompanying data on x = fluid flow velocity for a 5% soluble oil (cm/sec) and y = the extent of mist droplets having diameters smaller than some value:
x: 89 177 189 354 362 442 965
y: .40 .60 .48 .66 .61 .69 .99
d. Estimate the true average change in mist associated with a 1 cm/sec increase in velocity, and do so in a way that conveys information about precision and reliability. Hint: This question is asking for a CI for beta. Compute it AND interpret it. By hand; i.e. you must use the basic formulas for the CI. E.g. for beta: beta_hat +- t* s_e/sqrt(S_xx) , but you may use R to compute the various terms in the formula. Use 95% confidence level.
e. Suppose the fluid velocity is 250 cm/sec. Compute an interval estimate of the corresponding mean y value. Use 95% confidence level. Interpret the resulting interval. By hand, as in part d.
f. Suppose the fluid velocity for a specific fluid is 250 cm/sec. Predict the y for that specific fluid in a way that conveys information about precision and reliability. Use 95% prediction level. Interpret the resulting interval. By hand, as in part d.
In: Statistics and Probability
(1) Given the following information what is the percentage change in the price of the bonds if interest rates suddenly rise by 4%?
|
Wing Air Inc. |
|
|
Coupon rate |
7% |
|
Settlement date |
1/1/2000 |
|
Maturity date |
1/1/2002 |
|
Face value |
1,000 |
|
# of coupons per year |
2 |
|
Airfoil, Inc. |
|
|
Coupon rate |
7% |
|
Settlement date |
1/1/2000 |
|
Maturity date |
1/1/2015 |
|
Face value |
1,000 |
|
# of coupons per year |
2 |
|
Change in interest rate |
4% |
(A) Wing Air -7.01%, Airfoil -29.07%
(B) Wing Air -7.0%, Airfoil -29.22%
(C) Wing Air 7.71%, Airfoil 48.03%
(D) Wing Air -12.27%, Airfoil -50.87%
Cavu Air Inc., issued 15 Year bonds 2 years ago at a coupon rate of 5.50% percent. The bonds make semi annual payments. If these bonds currently sell for 104 percent of par value, what is the YTM?
|
Settlement date |
1/1/2000 |
|
Maturity date |
1/1/2013 |
|
Annual coupon rate |
5.50% |
|
Coupons per year |
2 |
|
Face value (% of par) |
100 |
|
Bond price (% of par) |
104 |
(A) 5.29%
(B) 5.71%
(C) 5.08%
(D) 5.50%
Contrail Air Inc. Just paid a dividend of $2.00 per share on its stock. The dividends are expected to grow at a constant rate of 4% percent per year, indefinitely. If investors require a return of 12% percent, what is the current price?
|
Dividend paid |
$2.00 |
|
Dividend growth rate |
4% |
|
Required return |
12% |
|
Requested year |
0 |
(A) 24.04
(B) (26.00)
(C) 26.00
(D) 24.00
In: Finance
Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to: 1.3% × Service years × Final year’s salary Stanley Mills was hired by Clark at the beginning of 2002. Mills is expected to retire at the end of 2046 after 45 years of service. His retirement is expected to span 15 years. At the end of 2021, 20 years after being hired, his salary is $88,000. The company’s actuary projects Mills’s salary to be $350,000 at retirement. The actuary’s discount rate is 6%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Estimate the amount of Stanley Mills’s annual retirement payments for the 15 retirement years earned as of the end of 2021.
2. Suppose Clark’s pension plan permits a lump-sum payment at retirement in lieu of annuity payments. Determine the lump-sum equivalent as the present value as of the retirement date of annuity payments during the retirement period.
3. What is the company’s projected benefit obligation at the end of 2021 with respect to Stanley Mills?
4. Even though pension accounting centers on the PBO calculation, the ABO still must be disclosed in the pension disclosure note. What is the company’s accumulated benefit obligation at the end of 2021 with respect to Stanley Mills?
5. If we assume no estimates change in the meantime, what is the company’s projected benefit obligation at the end of 2022 with respect to Stanley Mills?
6. What portion of the 2022 increase in the PBO is attributable to 2022 service (the service cost component of pension expense) and to accrued interest (the interest cost component of pension expense)?
In: Accounting
Problem 2
The Dunbar zoo operates a drive-through tourist attraction in hamilton. The selected accounts appearing below reflect balances on January 1 , 2017.
Prepaid Rent (expires on Nov 30,2017) 11,000
Prepaid Insurance (expires on Sep 30,2017) 9,000
Car 30,000
Accumulated Amortization - Car 2,000
Unearned Ticket Revenue 15,000
Other Data
-On December 1, 2017 the Zoo renewed the contract for another year for $18,000 to be paid in three installments. The first installment is due on April 1, 2018.
-On October 1, 2017, the zoo renewed the insurance policy for six months and paid $6,000. The full amount was record as an expense.
The unearned ticket revenue represents tickets sold in advance for future zoo visits. During 2002, additional $12,000 of tickets were sold in advance and were recorded as revenue earned. On December 31, 2017. it was determined that $4,000 of the tickets sold in advance were not used by customers.
A utility bill for $2,000 was received on December 31,2017 for the amount of utility used up during November and December 2017. The bill is due on jANUARY 15,2018.
On December 1, 2017, the zoo signed a contract with the Mifflin Food to supply food for the animals for an amount of $500 per month, effective January 1, 2018. The zoo paid $4,000 in advance and recorded it as an asset.
Required
Prepare the adjusting entires that were made by the Dunbar Zoo on December 31, 2017. If no adjusting entry is required, please type “NO ENTRY” in the appropriate space.
Explain how a revenue journal might to modified for the following specific business. Discuss the process of posting from revenue journal to general ledger.
In: Accounting
Warisan Jambu Manufacturer Sdn Bhd
Getting an idea to commercialise the iconic local cuisine in Pekan, Pahang – murtabak (beef stuffed pancake), has initiated the owner of Warisan Jambu Manufacturer Sdn Bhd, Mr Shah to venture into this food-making business. Mr Shah has started his food business since 2002 as an eatery that serving his murtabak products for customers who came either for dining in or took away the mouth-watering local cuisine. After 15 years delved into the food industry, he attempted to transform his current business model (runs a restaurant business) into a frozen food-based business. He has invested a substantial amount of capital to meet all the relevant authorities’ requirements that fit to his business model. Among the apparent challenges faced by Mr Shah are the financial constraints and lack of high skill workers in order to meet the increasing demand of customers mainly in the East Coast region. The company targets to increase its revenue by 25% yearly for the next three years ahead to earn a satisfactory amount of profit. Therefore, Mr Shah makes his effort to identify any business support services from government and other related agencies that could facilitate his business in the future.
Required.
(a) In today’s challenging business trends, Mr Shah should develop marketing strategies that allow him to act quickly, take advantage of opportunities before competitors do and respond to business threats before significant damage is done to the business.
Recommend any TWO (2) promotional tools of social media and its advantages in promoting his products to the target marketplace.
Subject: Entrepreneur
In: Economics