We are considering investing in a house that will cost $460,000 and generate weekly rental income of $440.

Calculate the value of our investment ftve years from today, assuming that we fund our investment using a $150,000 cash down payment and a five-year interest-only loan for the balance. This loan incurs interest of 6.1% per annum. We deposit all excess cash in a bank account that earns interest of 2.4% per annum compounded monthly.

Make the following additional assumptions, which are the same ones made in class:

• There are no taxes.

• The house price is constant over the five years of our investment.

• All rent and interest payments and receipts occur in a lump sum at the end of each year.

• There are 52 weeks in a year.

Projects A and B are mutually exclusive and have an initial cost of $78,000 each. Project A provides cash inflows of $32,000 a year for three years while Project B produces a cash inflow of $44,400 a year for two years. Which project(s) should be accepted if the discount rate is 10 percent? What if the discount rate is 12.5 percent?

Write 4-5 paragraphs on the background of the Economic and cost issue of the opioid crises in the US. Please don't use everything from the internet, except for the data. Also, provide data source for this issue, with a graph.

Suppose a government department would like to investigate the relationship between the cost of heating a home during the month of February in the Northeast and the​ home's square footage. The accompanying data set shows a random sample of 10 homes. Construct a​ 90% confidence interval to estimate the average cost in February to heat a Northeast home that is 3,000 square feet.

Determine the upper and lower limits of the confidence interval.

6. The cost equation for a certain company is given by
C(q) = 0.5q3 − 162q2 + 13500q,

where q is the quantity of items produced and the cost, C, is given in dollars.

1. (a) (1 pt) Find the equation for the average cost and the equation for C′(q).

   a(q) =

   C′(q) =

2. (b) (1 pt) Find the minimum average cost and the quantity at which it occurs. Show work.

Azu Company Limited is divided into four (4) cost centers.

That is A, B, as production departments and Human Resource & Repairs as service departments The actual cost of a period is as follows

                                                A                     B                     HR           Repairs

                                                GHS                 GHS                 GHS           GHS

Indirect materials                   35                     150                  -                       25

Maintenance wages               160                   250                  300                  325

Other overheads as follows:

                                                                        GHS

Supervision                                                     1500

Power                                                              1800

Rent                                                                300

Repairs of plants                                             1200

Depreciation of plants                                     850

Depreciation of building                                   720

The following information is available in respect of the departments:

                                                            A                     B                     HR            Repairs

Area occupied in square feet              1500              1100                900                  500

Number of employees                               20              15                    10                    5

Value of plant £                                  6000               4500                3000                1500

HZ Power                                              10000               9000             6000                5000

Required

1. Prepare an overhead analysis sheet by the most reasonable approach and estimate the overhead cost incurred in each cost center                                      (6marks)

2. Department A & B are production departments whereas HR & Repairs are there to service these production departments. Assume these two service departments do not render any service to each other. Using equitable and fair as appropriate as possible re-apportion the HR & Repairs overheads to the production departments (4marks)                                                                                         

The mean cost of domestic airfares in the United States rose to an all-time high of $400 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $120. Use Table 1 in Appendix B.

  What is the probability that a domestic airfare is $530 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $260 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $320 and $490 (to 4 decimals)?

d. What is the cost for the 4% highest domestic airfares? (rounded to nearest dollar)

Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was $30,500. Its estimated residual value was $9,500 at the end of an estimated 5-year life. The company expects to produce a total of 10,000 units. The company produced 1,150 units in 2018 and 1,600 units in 2019.


Required:

a. Calculate depreciation expense for 2018 and 2019 using the straight-line method.

b. Calculate the depreciation expense for 2018 and 2019 using the units-of-production method.

c. Calculate depreciation expense for 2018 through 2022 using the double-declining balance method.

Upper Division of Lower Company acquired an asset with a cost of $560,000 and a four-year life. The cash flows from the asset, considering the effects of inflation, were scheduled as follows.

The cost of the asset is expected to increase at a rate of 20 percent per year, compounded each year. Performance measures are based on beginning-of-year gross book values for the investment base. Ignore taxes.

Required:

a. What is the ROI for each year of the asset's life, using a historical cost approach?

b. What is the ROI for each year of the asset's life if both the investment base and depreciation are determined by the current cost of the asset at the start of each year?