Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt–equity ratio of .68. It’s considering building a new $65.8 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.83 million in perpetuity. There are three financing options:

1. A new issue of common stock: The required return on the company’s new equity is 15 percent.
2. A new issue of 20-year bonds: If the company issues these new bonds at an annual coupon rate of 7.3 percent, they will sell at par.
3. Increased use of accounts payable financing: Because this financing is part of the company’s ongoing daily business, the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .13. (Assume there is no difference between the pretax and aftertax accounts payable cost.)

If the tax rate is 38 percent, what is the NPV of the new plant? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to 2 decimal places, e.g., 32.16.)

Net present value            $

Case study 3

Mr. Hamood joined newly as a Marketing Manager in a famous Ibra Ice Cream Company in Oman. The company‟s ice cream had huge demand as the ice creams were tastier and had more flavours. The company introduced a New Ice Cream named “Taste Bites”, and wanted to market all over Oman. Mr. Hamood was made responsible for marketing the new product, He called his staff for a meeting and discussed the various strategies to market the new product. He also suggested the marketing director to set high price for the new product.

Mr. Yaqoob, the Marketing Director of the company was worried about the pricing of the new ice cream introduced by the company. Mr. Bilal, the Sales Manager, who use to take care the pricing of products, had recently resigned from the job and left the company. Now pricing responsibility was also given to Mr.Hamood. As Mr. Hamood is new and already assigned with marketing responsibility was seriously looking for someone to help and advise him with this new task. The company was having issues related to pricing, wholesaling, retailing, and dealing with broker & agents. They have to choose the best course of action to capture the market share.

Question 3

i.    Comment on Mr. Hamood‟s with various steps to be followed in planning and developing the

new product „Taste Bites‟ in the company.                                                (5Marks–125/ 150 words)

ii.   Evaluate the pricing strategy adopted by Mr. Hamood for the new product.

(2 Marks– 50 /75 words)

iii. Can Ibra Ice Cream Company be started as a specialty shops? Comment.

(3 Marks–75 / 100 words)

Your division manufactures the spare part needed to produce the main product. On January 1 of this year, you as the manager of the division invested $2 million in a new equipment. At that time, your expected income statement for this year was as follows:
Sales revenues $ 3,200,000
Operating costs:
     Variable (cash expenditures)    $ 400,000
      Fixed (cash expenditures)     1,500,000
Equipment depreciation        300,000
Other depreciation        250,000
     Total operating costs $2,450,000
Operating profits (before taxes) $   750,000
On October 25 of this year, a sales representative for Machine Specialized Company approached you and offered to rent to your division a new sophisticated machine that would be installed on December 31 of this year for an annual rental charge of $460,000. The new equipment would enable you to increase your division’s annual revenue by 10%. The more efficient machine would decrease fixed cash expenditures by 5%. You will have to write off the cost of the new equipment this year because it has no salvage value. Equipment depreciation shown in the income statement is for the new equipment.

Your bonus is determined as a percentage of your division’s operating profits before taxes. Equipment losses are included in the bonus and operating profit computation.
Ignore taxes and any effects on operations on the day of installation of the new machine. Assume that the data given in your expected income statement are the actual amounts for this year and next year if the current equipment is kept.
Required:
a. What is the difference in this year’s divisional operating profit if the new machine is rented and installed on December 31 of this year?
b. What would be the effect on next year’s divisional operating profit if the new machine is rented and installed on December 31 of this year?
c. Would you rent the new machine? Why or Why not?

Waterways puts much emphasis on cash flow when it plans for capital investments. The company chose its discount rate of 8% based on the rate of return it must pay its owners and creditors. Using that rate, Waterways then uses different methods to determine the best decisions for making capital outlays. In 2017 Waterways is considering buying five new backhoes to replace the backhoes it now has. The new backhoes are faster, cost less to run, provide for more accurate trench digging, have comfort features for the operators, and have 1-year maintenance agreements to go with them. The old backhoes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skills to use the new backhoes. The following information is available to use in deciding whether to purchase the new backhoes.

Old Backhoes New Backhoes

Purchase cost when new $90,000 $200,000

Salvage value now $42,000

Investment in major overhaul needed in next year . $55,000

Salvage value in 8 years $15,000 $90,000

Remaining life 8 years 8 years

Net cash flow generated each year $30,425 $43,900

(a) Evaluate in the following ways whether to purchase the new equipment or overhaul the old equipment. (Hint: For the old machine, the initial investment is the cost of the overhaul. For the new machine, subtract the salvage value of the old machine to determine the initial cost of the investment.)

(2) Using the payback method for each choice. (Hint: For the old machine, evaluate the payback of an overhaul.)

PLEASE help and explain how you got your answer I'll be so grateful

Shannon O’Bryan operates a service business called Edgecliff Photography. Edgecliff Photography uses the accounts shown in the following accounting equation. Transaction 1 is given as an example. For each transaction, complete the following: (a) Analyze the transaction to determine which accounts in the accounting equation are affected. (b) In the appropriate columns, enter a plus sign (+) if the account increases or a minus sign (–) if the account decreases, and then enter the amount. (c) For transactions that change owner’s equity, enter a description (revenue, expense, investment, or withdrawal) of the transaction to the right of the amount. (d) Calculate and enter a new balance for each account in the accounting equation. (e) Before going on to the next transaction, determine that the accounting equation is still in balance.

A receiving operator for a large grocery store is analyzing her operations. Trucks arrive to the loading dock at an average rate of four per hour for each day. The cost of operating a truck is estimated to be $75 per hour. Trucks are met by a two-person crew, the crew can unload the truck in an average of 9 minutes. The payroll associated with each crew member is $18/hour. It is possible to install new equipment to help the crew operate more efficiently, decreasing the unloading time from 9 minutes to 7 minutes per truck. Rental of this equipment would increase the daily cost of the operation by $200 per day. Assume each day is an 8-hour shift. Should the new equipment be installed?

a) Consider the performance of the crew before the new equipment is installed. On average, how many trucks are in the system (to the nearest 0.01 trucks) given the arrival and service rates?

b) Consider the performance of the crew before the new equipment is installed. On average, how many hours (to the nearest 0.01 hours) does each truck spend in the system given the arrival and service rates?

c) Consider the performance of the crew before the new equipment is installed. Basing your cost on the number of trucks in the system, what is the total system cost (to the nearest dollar) per day (crew cost and truck cost)?

d) Consider the performance of the crew after the new equipment is installed. On average, how many trucks (to the nearest 0.01 trucks) are in the system given the arrival and the new service rate?

e) Consider the performance of the crew after the new equipment is installed. On average, how many hours (to the nearest 0.01 hours) does each truck spend in the system given the arrival and the new service rate?

f) Consider the performance of the crew after the new equipment is installed. Basing your cost on the number of trucks in the system, what is the total system cost (to the nearest dollar) per day (crew cost and truck cost)? g) Based on your cost analysis - is it worth it to install the new equipment?

Waterways puts much emphasis on cash flow when it plans for capital investments. The company chose its discount rate of 7% based on the rate of return it must pay its owners and creditors. Using that rate, Waterways then uses different methods to determine the best decisions for making capital outlays.

This year Waterways is considering buying five new backhoes to replace the backhoes it now has. The new backhoes are faster, cost less to run, provide for more accurate trench digging, have comfort features for the operators, and have 1-year maintenance agreements to go with them. The old backhoes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skills to use the new backhoes.
The following information is available to use in deciding whether to purchase the new backhoes.

(a) Evaluate in the following ways whether to purchase the new equipment or overhaul the old equipment. (Hint: For the old machine, the initial investment is the cost of the overhaul. For the new machine, subtract the salvage value of the old machine to determine the initial cost of the investment.)

(1) Using the net present value method for buying new or keeping the old

(2) Using the payback method for each choice. (Hint: For the old machine, evaluate the payback of an overhaul.) (Round answers to 2 decimal places, e.g. 1.25)

(3) Comparing the profitability index for each choice. (Round answers to 2 decimal places, e.g. 1.25)

(4) Calculate the internal rate of return factor for the new and old blackhoes. (Round answers to 5 decimal places, e.g. 5.27647.)

(5) Comparing the internal rate of return for each choice to the required 7% discount rate.

.

Modify StudentLinkedList class by adding the following methods:

printStudentList: print by calling and printing “toString” of every object in the linkedList. Every student object to be printed in a separate line.

 deleteStudentByID(long id): delete student object from the list whose ID is matching with the passed parameter.

 sortListByID(): sort the linkedlist according to students IDs.

 findMarksAverage(): find the average of all marks for all students in the list.

 findMinMark(int markIndex): find the student with the minimum mark in a specific index:

o 0: Quizzes

o 1: Midterm Exam

o 2: Final Exam

import java.util.LinkedList;

public class StudentLinkedList {

public static void main(String[] args) {

LinkedList linkedlist = new LinkedList();

linkedlist.add(new Student("Ahmed Ali", 20111021, 18, 38, 38));

linkedlist.add(new Student("Sami Kamal", 20121021, 17, 39, 35));

linkedlist.add(new Student("Salem Salim", 20131021, 20, 40, 40));

linkedlist.add(new Student("Rami Mohammed", 20111031, 15, 35, 30));

linkedlist.add(new Student("Kim Joe", 20121024, 12, 32, 32));

linkedlist.addFirst(new Student("Hadi Ali", 20111025, 19, 38, 39));

linkedlist.addLast(new Student("Waleed Salim", 20131025, 10, 30, 30));

linkedlist.set(0, new Student("Khalid Ali", 20111027, 15, 30, 30));

linkedlist.removeFirst(); linkedlist.removeLast();

linkedlist.add(0, new Student("John Don", 20131025, 11, 31, 31));

linkedlist.remove(2);

}

class Student{

private String name;

private Long ID;

private int [] marks = new int [3];

public Student(String name, long ID, int quizzes, int mid, int fin) {

this.name = name; this.ID = ID;

marks[0] = quizes;

marks[1] = mid;

marks[2] = fin;

}

public String getName() {

return name;

}

public Long getID() {

return ID;

}

public int[] getMarks() {

return marks;

}

@Override public String toString() { String temp = "student: " + "name = " + name + ", ID = " + ID + ", marks = {" + marks[0] + ", " + marks[1] + ", " + marks[2] + "}"; return temp; }

}

This question uses the "Morphine" data set, available on Canvas. As usual, you have been randomly assigned one of 10 versions of this data. Your version is 3.

2.3          M_S

3.5          M_S

1.1          M_S

8.1          M_S

2.4          M_S

1.9          M_S

4.8          M_S

8.6          M_S

3              M_M

11.6        M_M

12.5        M_M

4.8          M_M

9.4          M_M

10           M_M

12.5        M_M

19.4        M_M

13.4        S_S

6.1          S_S

14.8        S_S

5.2          S_S

20.2        S_S

1.6          S_S

8.9          S_S

20.3        S_S

27.1        S_M

19           S_M

35.4        S_M

20           S_M

25.7        S_M

17.5        S_M

25.4        S_M

17           S_M

24.4        M_M(new)

26.6        M_M(new)

38.8        M_M(new)

31.1        M_M(new)

20.4        M_M(new)

33.4        M_M(new)

25.6        M_M(new)

29.5        M_M(new)

1. Use Analyze / Fit Y by X to tell JMP what your predictor and response variables are. Then select Means / ANOVA from the drop down menu. Report the values of the following statistics:

a. SSG (JMP calls this "Treatment sum of squares"):

b. SSE:

c. MSG:

d. MSE:

e. The test statistic that tests H0:μM_S = μM_M = μS_S = μS_M = μM_M new:

2. Based on the result of this analysis, we can say (select all that apply):

We reject H0 and conclude that all group means are equal

We reject H0 and conclude that all group means differ from one another

We reject H0 and conclude that at least one group mean differs from the rest

The test statistic is bigger than we'd expect it to be if all group means were equal

The test statistic is smaller than we'd expect it to be if all group means were equal

The test statistic is about what we'd expect it to be if all group means were equal

The average between group variation is large relative to the average within group variation

The average between group variation is small relative to the average within group variation

The average between group variation is not very different from the average within group variation

3. From the "Oneway Analysis" drop down menu, select Compare Means / Each Pair, Student's t.

a. Select the pairwise comparisons that are significant, using a comparison-wise error rate of α=0.05

μM_S - μM_M

μM_S - μS_S

μM_S - μS_M

μM_S - μM_M(new)

μM_M - μS_S

μM_M - μS_M

μM_M - μM_M(new)

μS_S - μS_M

μS_S - μM_M(new)

μS_M - μM_M(new)