You are the chief marketing officer for a large international organization that provides service to over 25,000 retail outlets. Management wants to improve sales by increasing business with existing customers and getting new customers as well. You feel that the best way to do this is to start by providing your field staff with new laptops and software. presentation that you will give to the Board of Directors of your Corporation to justify spending approximately $100,000 on this program. Your presentation should cover at least the following key points – showing all the new program will either save money or increase revenues: •How will the new communication tools allow the field sales staff to spend more time with existing customers and developing new business? •What types of communication tools can be linked together to improve overall efficiencies and the field sales staff’s access to information? •How can this new program feed valuable information into the master database of the organization.
In: Economics
The J. J. Hill Company is considering new digging equipment machine. The existing digging equipment cost $1,000,000 five years ago and is being depreciated using MACRS, when classified as a 5-year asset. Hill's management estimates the old equipment can be sold for $200,000. The new equipment costs $1,200,000 and would be depreciated over five years using MACRS. At the end of the fifth year, Hill's management intends to sell the new equipment for $400,000. The new equipment is more efficient and would reduce expense by $200,000 per year for the next five years. The marginal tax rate is 35%.
(a) What are the cash flows related to the acquisition of the new equipment?
(b) What are the cash flows related to the disposition of the old equipment?
(c) What are the cash flows related to the disposition of the new equipment?
(d) What are the operating cash flows for each year?
(e) What the net cash flows for each year?
In: Finance
• FIN Ltd is considering the purchase of a new photocopier to replace the existing one. The following information is available.
• The total cost of the NEW is $16,000. The NEW is to be depreciated using the straight-line method with an effective life of 10 years.
• The OLD was purchased 5 years ago for $7500. When it was purchased, the asset had an expected useful life of 15 years and an estimated market value of zero at the end of its life. The machine currently has a market value of $1000.
• As a result of the NEW , sales in each of the next ten years are expected to increase by $2000, and product costs (excluding depreciation) will represent 50% of sales.
• As a result of the NEW, current assets will increase by $5,000 and current liabilities will increase by $2000. The net working capital will be recovered in the terminal year.
• The terminal value of the NEW at the end of Year 10 will be
$3000.
• The company is subject to a 30% tax rate and the cost of capital
is 15%.
i) Compute the NPV. Should FIN accept the project and why?
In: Finance
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Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,200,000; the new one will cost $1,460,000. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about $200,000 after five years. The old computer is being depreciated at a rate of $240,000 per year. It will be completely written off in three years. If we don’t replace it now, we will have to replace it in two years. We can sell it now for $320,000; in two years, it will probably be worth $110,000. The new machine will save us $280,000 per year in operating costs. The tax rate is 25 percent and the discount rate is 10 percent. |
| a. |
Calculate the EAC for the old computer and the new computer. 1. New computer: 2. Old computer: |
| b. |
What is the NPV of the decision to replace the computer now? NPV: |
In: Finance
A firm is considering an investment in a new machine with a
price of $18.15 million to replace its existing machine. The
current machine has a book value of $6.15 million and a market
value of $4.65 million. The new machine is expected to have a
four-year life, and the old machine has four years left in which it
can be used. If the firm replaces the old machine with the new
machine, it expects to save $6.85 million in operating costs each
year over the next four years. Both machines will have no salvage
value in four years. If the firm purchases the new machine, it will
also need an investment of $265,000 in net working capital. The
required return on the investment is 12 percent and the tax rate is
35 percent.
What is the NPV of the decision to purchase a new machine?
What is the IRR of the decision to purchase a new machine?
What is the NPV of the decision to purchase the old machine?
What is the IRR of the decision to purchase the old machine?
In: Finance
Required information [The following information applies to the questions displayed below.] Wendell's Donut Shoppe is investigating the purchase of a new $18,600 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $3,800 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 1,000 dozen more donuts each year. The company realizes a contribution margin of $1.20 per dozen donuts sold. The new machine would have a six-year useful life. (Ignore income taxes.) Solve this question using your financial calculator or Excel, NOT the tables in the chapter. Requirement 2: Find the internal rate of return promised by the new machine. (Round your answer to two decimal places. Omit the "%" sign in your response.) Internal rate of return %
In: Accounting
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Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,210,000; the new one will cost $1,470,000. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about $210,000 after five years. |
|
The old computer is being depreciated at a rate of $242,000 per year. It will be completely written off in three years. If we don’t replace it now, we will have to replace it in two years. We can sell it now for $330,000; in two years, it will probably be worth $111,000. The new machine will save us $281,000 per year in operating costs. The tax rate is 40 percent, and the discount rate is 11 percent. |
| a. |
Calculate the EAC for the old computer and the new computer. New Computer EAC: Old Computer EAC:
|
In: Accounting
There is a serial program (single thread, single core) that performs a given task in 47 hours. The core operation of this program is a nested loop doing matrix multiplication.
We would like to get a faster result
We have access to a new multi-core, multi-processor machine with the following characteristics. 4-cores 3-processors. Not only does this new machine have multiple processors with multiple cores, but the single core processing speed is also 25% faster than that of the other single core machine.
8.a. What is the theoretical speedup of this new machine over the old?
8.b. What is the theoretical efficiency of this new machine over the old?
8.c. How many more core operations will this new machine have to do compared to that of the old machine?
8.d. How long will it take the new machine to perform the task that took the old 47 hours?
In: Computer Science
ABCCo Inc. is currently an all-equity firm. Because of strong investment opportunities, it needs to raise $5,500,000 in additional funds. By investing in these opportunities, it expects future earnings to be a constant $1,000,000 per year. The firm’s unlevered cost of equity is 13%, and its before tax cost of debt is 7.5%.
If there are no corporate taxes,
A) What is the value of ABCCo if it issues new equity to raise the funds?
B) What is the value of ABCCo if it issues debt to raise the funds?
C) If ABCCo issues debt, what will the new cost of equity be?
D) If ABCCo issues debt, what will the new weighted average cost of capital be?
If corporate taxes are 35%,
E) What is the value of ABCCo if it issues new equity to raise the funds?
F) What is the value of ABCCo if it issues debt to raise the funds?
G) If ABCCo issues debt, what will the new cost of equity be?
H) If ABCCo issues debt, what will the new weighted average cost of capital be?
In: Finance
For this assignment, create a complete UML class diagram of this program. You can use Lucidchart or another diagramming tool. If you can’t find a diagramming tool, you can hand draw the diagram but make sure it is legible.
Points to remember:
• Include all classes on your diagram. There are nine of them.
• Include all the properties and methods on your diagram.
• Include the access modifiers on the diagram. + for public, - for private, ~ for internal, # for protected
• Include the proper association lines connecting the classes that “know about” each other.
o Associations
o Dependencies
o Inheritance
o Aggregation
o Composition
• Static classes are designated on the diagram with > above the class name, and abstract classes are designated with > above the class name.
-------------------------------------------------------------------
static class GlobalValues
{
private static int maxStudentId = 100;
public static int NextStudentId
{
get
{
maxStudentId += 1;
return maxStudentId;
}
}
}
class College
{
public string Name { get; set; }
public Dictionary<string, Department> Departments { get; } =
new Dictionary<string, Department> { };
internal College()
{
Departments.Add("ART", new ArtDept() { Name = "Art Dept" });
Departments.Add("MATH", new MathScienceDept() { Name = "Math
/Science Dept" });
}
}
abstract class Department
{
public string Name { get; set; }
public Dictionary<string, Course> CourseList { get; } = new
Dictionary<string, Course> { };
protected abstract void FillCourseList();
// Department constructor
public Department()
{
// When a department is instantiated fill its course list.
FillCourseList();
}
}
class ArtDept : Department
{
protected override void FillCourseList()
{
CourseList.Add("ARTS101", new Course(this, "ARTS101") { Name =
"Introduction to Art" });
CourseList.Add("ARTS214", new Course(this, "ARTS214") { Name =
"Painting 2" });
CourseList.Add("ARTS344", new Course(this, "ARTS344") { Name =
"American Art History" });
}
}
class MathScienceDept : Department
{
protected override void FillCourseList()
{
CourseList.Add("MATH111", new Course(this, "MATH111") { Name =
"College Algebra" });
CourseList.Add("MATH260", new Course(this, "MATH260") { Name =
"Differential Equations" });
CourseList.Add("MATH495", new Course(this, "MATH495") { Name =
"Senior Thesis" });
}
}
class Course
{
public readonly Department Department;
public readonly string Number;
private List<Enrollment> Enrollments { get; } = new
List<Enrollment> { };
public string Name { get; set; }
internal Course(Department department, string number)
{
Department = department;
Number = number;
}
public void Enroll(Student student)
{
Enrollments.Add(new Enrollment(this, student));
Console.WriteLine($"{ student.Name } has been enrolled in \"{ Name
}\".");
}
}
class Student
{
public readonly int Id;
private string name;
public string Name
{
get { return name; }
set
{
name = value;
Console.WriteLine($"{ name } is student ID: { Id }.");
}
}
// New Student constructor with a Student.Id
internal Student(int id)
{
Id = id;
}
// New Student constructor without a Student.Id
internal Student()
{
Id = GlobalValues.NextStudentId;
Console.WriteLine($"A new student has been assigned ID: \"{ Id
}\".");
}
}
class Enrollment
{
public readonly Student Student;
public readonly Course Course;
internal Enrollment(Course course, Student student)
{
Student = student;
Course = course;
}
}
class Program
{
static void Main()
{
College MyCollege = new College();
Student Justin = new Student() { Name = "Justin" };
Student Gloria = new Student() { Name = "Gloria" };
MyCollege.Departments["ART"].CourseList["ARTS344"].Enroll(Justin);
MyCollege.Departments["ART"].CourseList["ARTS214"].Enroll(Gloria);
MyCollege.Departments["MATH"].CourseList["MATH111"].Enroll(Justin);
MyCollege.Departments["MATH"].CourseList["MATH260"].Enroll(Gloria);
Console.WriteLine("Press Enter to quit...");
Console.ReadLine();
}
}
In: Computer Science