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Consider that you are 40 years old and have just changed to a new job. You have $141,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new employer. You will also contribute $6,300 each year into your new employer’s plan. |
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If the rolled-over money and the new contributions both earn an 7 percent return, how much should you expect to have when you retire in 25 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) |
In: Finance
| [9] UVW, Inc. had an old piece of equipment that had cost $500,000. The CFO wanted to trade-in the | ||||||
| old piece of equipment for a new piece of the same equipment. At the time of the trade-in, the | ||||||
| controller had recorded accumulated depreciation of $400,000. The fair market value of the old piece | ||||||
| of equipment at the date of the trade-in was $150,000. In order to acquire the new piece of equipment | ||||||
| the controller had to also cut a check to the vendor of the new equipment in the amount of $430,000. | ||||||
| What is the entry the controller made to the books. MAKE SURE YOU DESIGNATE EACH PIECE | ||||||
| OF EQUIPMENT AS OLD OR NEW, OR YOU WILL LOSE POINTS. | ||||||
In: Accounting
The organizational buying center varies as a function of size of
the company and product
or service being purchased. How does size of the company influence
the composition
of the buying center? How might the composition of the buying
center differ for
each of the following products?
a. Purchasing a new computer for personal use.
b. Purchasing a new copy machine for the office.
c. Selecting a different public accounting firm.
d. Selecting a new textbook for a sales management course.
e. Choosing a different source for industrial oils and
lubricants.
f. Purchasing a new machine.
g. Choosing a marketing research firm.
In: Finance
Market Research Associates is conducting research to evaluate the effectiveness of a client’s new advertising campaign. Before the new campaign began, a telephone survey of 150 households in the test market area showed 60 households “aware” of the client’s product. The new campaign has been initiated with TV and newspaper advertisements running for three weeks. A survey conducted immediately after the new campaign showed 120 of 250 households “aware” of the client’s product. Does the data support the position that the advertising campaign has provided an increased awareness of the client’s product? Use α = 0.05 and the p-value approach.
In: Statistics and Probability
In a plant that fills 12 ounce cans of soda, the mean fill amount with the current machinery is 12.2 ounces with a standard deviation of 0.03 ounces. A new machine is said to be more accurate, so the company tested this new machine on a run of 10 cans, and obtained the following fill amounts:
12.03 12.10 12.02 11.92 12.10 12.00 12.05 11.97 11.99 11.87
Test the claim that the standard deviation of the new machine is lower than the standard deviation of the original machine at a 1% significance level, because purchasing the new machines is very expensive.
The alternative hypothesis is H1:
In: Statistics and Probability
Quartz Corporation is a relatively new firm. Quartz has experienced enough losses during its early years to provide it with at least eight years of tax loss carryforwards. Thus, Quartz’s effective tax rate is zero. Quartz plans to lease equipment from New Leasing Company. The term of the lease is five years. The purchase cost of the equipment is $840,000. New Leasing Company is in the 35 percent tax bracket. There are no transaction costs to the lease. Each firm can borrow at 10 percent.
a. What is Quartz’s reservation price?
b. What is New Leasing Company’s reservation price?
In: Finance
Consider that you are 45 years old and have just changed to a new job. You have $159,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new employer. You will also contribute $8,100 each year into your new employer’s plan. If the rolled-over money and the new contributions both earn an 8 percent return, how much should you expect to have when you retire in 20 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Future value = ?
In: Finance
A = C + I + G + X - M C = 500 + 0.5Y – 200i I = 14000 + 0.2Y– 200i G = 1200 - 0.1Y X = 2000 M= 1000 -.05Y Y = A L = 0.33Y – 25i (M/P) = 3000 L = (M/P)
e. If the government increases spending G by 100:
i. What would the new IS Curve look like?
ii. What would the new LM curve look like?
iii. What would the new equilibrium income Y and Interest I be?
iv. At this new equilibrium, what would the level of Investment spending be?
In: Economics
. Grant Telephony Industry grew enormously the new users embraced mobile technology. The cost required for the new mobile phone was very high because carriers heavily subsidized handset and retailer costs to make it easier for new user to sign up for new service. As a result, carriers face a pressing need to maximize their average return per user (ARPU) by retaining their best customer for as long as possible. This challenge is particularly acute in the face of showing growth due to market saturation and the impending expiration of many original customers’ service plans.(b) Give strategies to implement these goals.
In: Economics
Backus, Inc., makes and sells many consumer products. The firm’s average contribution margin ratio is 25%. Management is considering adding a new product that will require an additional $11,000 per month of fixed expenses and will have variable expenses of $5.5 per unit.
Required:
a. Calculate the selling price that will be required for the new product if it is to have a contribution margin ratio equal to 25%. (Round your answer to 2 decimal places.)
b. Calculate the number of units of the new product that would have to be sold if the new product is to increase the firm's monthly operating income by $10,000. (Do not round intermediate calculations.)
In: Accounting