Questions
1.The 2020 Q2 unemployment rate in New Zealand was 4.0%. This represented 110,000 unemployed individuals. If...

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...

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...

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...

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...

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

Please solve by hand, not using excel. No discount rate provided. Suppose Blue Thumb Tools is...

Please solve by hand, not using excel. No discount rate provided.

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)?

In: Finance

You will write Stack class in c++ that will be integrated into a larger software product...

You will write Stack class in c++ that will be integrated into a larger software product provided by the instructor. This Stack class uses a dynamically allocated array to store data values (integers) that have been pushed onto the stack object. When the client code attempts to push another integer onto a full stack, your Push operation should invoke the Resize() function which attempts to double the capacity of the stack and then add the new data value to the resized stack array. In Resize() a new array (that holds twice as many integers) is dynamically allocated, data from the old stack array is copied into the new larger stack array, the old stack array is deallocated, and the new data value is pushed onto the new array.

In: Computer Science

EGI is a firm in the gaming sector with 350 million of equity and $175 million...

EGI is a firm in the gaming sector with 350 million of equity and $175 million of debt in its capital structure (market values). It has 10 million shares outstanding with a 12% unlevered cost of capital and 4% risk free interest rate on its debt. The corporate tax rate is 30%. The firm is planning to come up with a new handheld video game that is expected to have an initial investment of $25 million with project having the same business risk as that of EGI’s existing assets. The new investment is expected to generate annual EBIT of $8 million which is expected to grow at 2% per annum until perpetuity?

a.  EGI initially proposes to fund the new project by issuing equity. If investors were not expecting this investment, and if they share EGI’s view of the project’s profitability, what will the share price be once the firm announces the project plan?

b.  Suppose investors think that the EBIT from EGI’s new project will be only $3 million per year without any growth (i.e. $3 million every year to perpetuity). What will the share price be in this case? How many shares will the firm need to issue?

c.  Suppose EGI issues equity as in part (b). Shortly after the issue, new information emerges that convinces investors that management was, in fact, correct regarding the cash flows from the new project. What will the share price be now? Why does it differ from that found in part (a)? How much will the old and new shareholders gain after the new information arrives?

d.  Suppose EGI instead finances the expansion with a $25 million issue of permanent risk-free debt. If EGI undertakes the expansion using debt, what is its new share price once the new information comes out?

In: Finance

B Company is considering replacing an existing processor with a new one that costs $240,000. Shipping...

B Company is considering replacing an existing processor with a new one that costs $240,000. Shipping and setup costs for the new processor are estimated.to be $13,000. B Company's working capital is expected to increase by $15,000 when the new processor begins operation and is expected to be fully recoverable at the end of the project. The new processor's useful life is expected to be 5 years and its salvage value at that point is estimated to be $49,900. The old processor had an installed cost of $120,000 when it was placed in service three years ago and is being depreciated to a zero book value using a 5 year ACRS life. The processor can be sold today for $33,200. The increase in revenues and before tax cash operating expenses for the new processor compared to continuing with the old processor are shown in the table below. B Company has a marginal tax rate of 34% and a cost of capital of 10%.

Year Incremental Revenues Incremental Cash Operating Expenses ACRS Depr. %
1 $80,000 $22,000 15
2 $79,000 $21,000 22
3 $91,000 $30,000 21
4 $88,000 $25,000 21
5 $88,000 $28,000 21

The initial investment for the project is:

$231,295

$223,876

$224,266

$228,952

The installed cost of the new processor is:

$207,000

$228,000

$253,000

$238,000

Incremental depreciation expense for year 2 in the life of the new processor is:

$34,120

$31,680

$32,900

$30,460

Operating Cash Flow After Tax (OCFAT) for year 3 of the life of the new processor is:

$58,324

$54,074

$63,106

$43,448

After tax salvage value of the new processor at the end of year 5 is:

$32,934

$37,545

$29,641

$36,886

Operating cash flow after tax (OCFAT) for year 5 of the life of the new processor is

$99,011

$105,598

$102,305

$103,622

NPV of the project is:

$129

$122

$103

$110

In: Finance

The Plant department of the local telephone company purchased four special pole hole diggers eight years...

The Plant department of the local telephone company purchased four special pole hole diggers eight years ago for $14,000 each. They have been in constant use to the present time. Due to an increased workload, it is considered that additional machines will soon be required. Recently it was announced that an improved model of the digger has been put on the market. The new machines have higher production rate and lower maintenance expense than the old machines, but their cost will be $32,000 each. The service life of the new machines is estimated to be 8 years with salvage estimated at $750 each. the four original diggers have an immediate salvage of $2,000 each and an estimated salvage of $500 each eight years hence. The estimated average annual maintenance expense associated with the old machines is approximately $1,500 each compared to $600 each for the new machines. A field study and trial indicates that the workload would require three additional new type machines if the old machines are continued in service. However, if the old machines are all retired from service, the present workload plus the estimated increased load could be carried by 6 new machines with an annual savings of $12,000 in operator costs. Because the new machines employ a new principle of operation, it is contrmplated that the special personnel-training program will be necessary before the machines can be placed in operation it is estimated that this training program will cost about $700 per new machine. if the MARR is 9% before taxes, what should the company do?

A) 6 new machines because they save/ cost $X per year. (find this amount X)

B)3 new machines and 4 old machines because they save/cost $X per year. (find this amount X)

C)Collect more information because with the given information, this problem cannot be solved.

In: Accounting