King Fisher Aviation is considering an investment in a new technology for a drone project with a price of $16 million. Their current technology has a book value of $5 million and a market value of $5 million. The new technology is expected to have a five (5) year life, and the old technology has three (3) years left in which it can be expected to be used. If the firm replaces the old technology with the new technology it expects to save $5.7 million in operating costs each year over the next four years. If the firm purchases the new technology, it will also need an investment of $300,000 in net working capital. The required return on the investment is 12 percent, and the tax rate is 39 percent.
What are your recommendations for investment in the new technology?
In: Finance
A computer company shipped two new computers to a customer. These two computers were randomly selected from the 15 computers in stock. Unfortunately, the inventory clerk by mistake mixed up new computers with refurbished computers. As a result, the 15 computers in stock consisted of 11 new computers and 4 refurbished computers. If the customer received one refurbished computer, the company will incur a shipping and handling expense of $100 to replace that computer with a new computer. However, if both computers were refurbished, the customer would cancel the order and the company will incur a total loss of $1,000. If the customer received both computers as new, then there is no extra cost involved (i.e., zero loss). Find the expected value and standard deviation of the computer company's loss. (5 Points)
In: Statistics and Probability
Please write SAS code
1) How to find age<65*Female?
2) How to assign region for the below description?
|
Age < 65 |
Age ≥ 65 |
Total N |
|
|
Sex Male Female |
|||
|
Region Northeast Midwest South West |
|||
|
Race White Black Asian All other race groups |
Table 1:
RACERPI2:
01 – White Only (New Category: White)
02 – Black/African American Only (New Category: Black)
03 – AI/AN Only (New Category: All Other Race Groups)
04 – Asian Only (New Category: Asian)
05 – Race Group Not Releasable (Set this to a missing value)
06 – Multiple Race (New Category: All Other Race Groups)
In: Computer Science
An officer for a large construction company is feeling nervous. The anxiety is caused by a new excavator just released onto the market. The new excavator makes the one purchased by the company a year ago obsolete. As a result, the market value for the company’s excavator has dropped significantly, from $600,000 a year ago to $50,000 now. In 10 years, it would be worth only $3,000. The new excavator costs only $950,000 and would increase operating revenues by $90,000 annually. The new equipment has a 10-year life and expected salvage value of $175,000. The tax rate is 35 percent, the CCA rate, 25 percent for both excavators, and the required rate of return for the company is 14 percent. What is the NPV of the new ex
In: Finance
|
Thinking Hat would like to start a new project which will require $21 million in the initial cost. The company is planning to raise this amount of money by selling new corporate bonds. It will generate no internal equity for the foreseeable future. Thinking Hat has a target capital structure of 65 percent common stock, 12 percent preferred stock, and 23 percent debt. Flotation costs for issuing new common stock are 10 percent, for new preferred stock, 10 percent, and for new debt, 4 percent. What is the true required initial investment that the company should use in its valuation of the project? (Do not round your intermediate calculations.) |
r
ev: 09_20_2012Multiple Choice
$19,320,000
$22,061,721
$23,900,197
$22,810,200
$22,980,959
In: Finance
1.The 2020 Q2 unemployment rate in New Zealand was 4.0%. This represented 110,000 unemployed individuals. If the working-age population (adult, civilian, non-institutionalized) was 3,980,000, calculate the labor force participation rate.
2.The 2020 Q2 unemployment rate in New Zealand was 4.0%. This represented 110,000 unemployed individuals. If the working-age population (adult, civilian, non-institutionalized) was 3,980,000, calculate the number of employed individuals.
3.Between July and September of 2018, New Zealand's real disposable income increased from 61.3 billion NZD to 61.9 billion NZD. During that same period, New Zealand's real consumption increased from 38.9 billion NZD to 39.2 billion NZD.Calculate the MPC for New Zealand
In: Economics
Advanced Digital Design is analyzing a capital investment project for using new computing technology to reduce current operating costs. The new computing technology will have a five-year life with no salvage value at the end of five years. Advanced Digital Design’s cost of capital is 12%. Relevant cash flows and present value factors for 5 years @ 12% are as follows: Investment in computer technology = $500,000. Annual net cash savings from new computer technology = $135,000. Salvage value of new computer technology = $0. Present value of $1 = 0.5674 Present value of an annuity of $1 = 3.6048 The net present value of the investment in new computing technology is: A) $(423,401) B) $ (13,352) C) $76,599 D) $175,000
In: Accounting
Silvana Zhang of Sajjad Jafri & Geopeng Li Limited is considering purchasing a new widget making machine. She would like to know the maximum price she should pay for the new machine.
1. The new machine will replace the existing machine, which has a current market value of $1,000,000.
2. New machine will reduce before tax operating cost by $300,000 per year for 15 years.
3. The old machine is expected to last for another 10 years and will have a salvage value of $100,000 at the end of 10 years.
4. The new machine is expected to last for 15 years and will have a salvage value of $200,000. CCA rate is 20%, tax rate is 30%, and the required rate of return is 15 %
In: Finance
I'm completely lost can someone really break it down
in English with how to answer each
For each question, draw the appropriate picture, with shading. Then show all calculations and write a sentence for your answer.
The weight of new-born babies in the US is normally
distributed with a mean of 7.5 pounds and a standard deviation of 2
pounds.
What percentage of new-born babies in the US weighs
more than 7.5 pounds?
What is the probability that a new-born baby in the US
weighs more than 9.5 pounds?
What is the chance that a new-born baby in the US
weighs less than 3.5 pounds?
What is the probability that a new-born baby in the US
weighs between 3.5 pounds and 9.5 pounds?
In: Statistics and Probability
9. Suppose Blue Thumb Tools is considering the introduction of a new, heavier hammer to be used for driving spikes. The new hammer will cost $490,000. The cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the new hammer can be scrapped for $40,000. The new hammer will save the firm $146,000 per year in pretax operating costs, and it required an initial investment in net working capital of $35,000. The tax rate of the firm is 30%.
What are the cash flows of firm’s new project (using a time line)?
What is the net present value of this project (list your setups)?
What is the IRR of this project (list your setups)?
Please solve without excel so that I can see the steps.
In: Finance