Victor is spending HKD300,000 per year and is quite satisfied with the present living lifestyle and standard. He is now 38 and plans to retire at age 60. He believes he can live up to age 85. He wants to keep 80% of the current living lifestyle and standard after retirement.

Victor would like all the money for retirement to be ready when he retires. He also would like the retirement money for spending in a year to be ready at the beginning of every year. He plans to start saving for the retirement reserve with an equity unit trust fund of 10% annual rate of return. Average expected annual rate of return during his retirement period is 6%. Assume the average long term inflation is 4% p.a.

a. What is the required annual expenditure at the time when Victor retires at age 60?

b. What is the total amount of money required for 25 years after Victor’s retirement? (at the beginning of age 60)

c. How much should Victor save at the beginning of each month from now on until the age of 60 in order to meet the required amount at (c)?

A. The expected demand for a regular component is 2000 units per year. The item can be purchased from Bonjo Limited. Their lists are shown in the table below. The ordering cost is $200 and the carrying cost per unit is 75%. The cost is $20.

You have just been promoted as the operations manager for this firm. Advise the purchasing manager in making the following decisions.

i. What is the economic order quantity?      

ii. If BONJO wants to consider quantity discount, what quantity should he order and why?  

B. Over the past year Jojo Ltd had annual sales of 10, 000 detergent paste ‘KEY’. The average quarterly sales for past 5 years have averaged; ?1 = 4000, ?2 = 3000, ?3 = 2000, and ?4 = 1000. Find the seasonal index.

Find a news article published in the past year about a health disparity or an attempt to address a health disparity. Give a summary in a few sentences and provide a link to the article.

QUESTION 96

1. A baseball player is offered a contract that will pay $1,455,382 per year for 5 years, followed by $2,113,877 per year for 3 years, followed by $2,633,054 per year for 7 years. All contract payments are paid at the end of the year. If the player's required rate of return is 5.7%, how much is this contract worth? State your answer to the nearest whole dollar.

QUESTION 97

1. A company is considering the purchase of a new production line that it has estimated will generate the following annual cash flows:  $5,710,498 per year for 8 years, followed by $7,672,287 per year for 2 years, followed by $3,519,326 per year for 15 years. All cash flows will be received at the end of the year. If the company's required rate of return is 12.4%, what is the maximum price at which the company will purchase this new line? State your answer to the nearest whole dollar.

QUESTION 98

1. Assume that you will receive $8,766 per year for 4 years, followed by $4,590 per year for 8 years, followed by $7,686 per year for 3 years. All cash flows are to be received at the end of the year. If the required rate of return is 14.9%, what is the present value of these cash flows? State your answer to the nearest whole dollar.

QUESTION 99

1. What is the present value of a 28-year ordinary annuity with annual payments of $118,60480,000, evaluated at a 7.1 percent interest rate? State your answer to the nearest whole dollar.

QUESTION 100

1. What is the effective annual interest rate on an investment that quotes a nominal annual rate of 8.79% compounded quarterly? State your answer as a percentage to 2 decimal places

The year is 1997, California Pizza Kitchen is thinking to launch a new brand of frozen pizza. You are the Brand Manager for CPK.

Your task: develop a one-page executive summary to G.J. Hart, CEO persuading him that the company should launch this product

What is CPK's key POD?

What is your recommended S-T-P?

Include a proper positioning statement (using Kotler's model) What are the company's calculated risks?

WHY should the company pursue this endeavor?

Include an introduction, and summary conclusion

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 51 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.1 pounds, what is the probability that the sample mean will be each of the following?

a. More than 61 pounds

b. More than 56 pounds

c. Between 55 and 57 pounds

d. Less than 54 pounds e. Less than 48 pounds

(Round the values of z to 2 decimal places. Round your answers to 4 decimal places.)

A nation's economy fluctuates instead of growing at a steady pace every year. These fluctuations are generally referred to as the business cycle. Describe the four different phases of the business cycle.

Last year medical students are sent to rural places in order to
medicate and relieve the inhabitants of this population who do not have access to health
quality. An aspiring doctor finds that a quarter of a population
is vaccinated against malaria. In an epidemic of this disease, he observes that
of every 5 patients 1 is vaccinated. It is also known that of every 12 vaccinated only
1 is sick. The doctor wants to calculate the probability that a non-vaccinated person is
sick

The following information pertains to the York Company for the year ending December
31, 2019.

$ Hours
Revenue 240,000
Interest Revenue 50,000
Raw materials used 40,000
Indirect Labour 4,000
Indirect Materials 9,000
Utilities [factory] 4,500
Depreciation of factory equipment 10,000
Depreciation of factory buildings 19,000
Depreciation of admin buildings 5,000
Marketing costs 30,000
Wages [Store] 10,000
Utilities [store] 6,000
Supplies [store] 3,500
Direct Labour Hours 2000
Hourly Rate for direct labour 10
Finished Goods Inventory Jan 1 2019 7,000
Finished Goods Inventory Dec 31 2019 15,000
Bond Payable 65,000
Interest Rate 10%
Tax rate 22%

REQUIRED
1. Prepare a budgeted COGS statement
2. Prepare a projected income statement