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?

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 = ?

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?

. 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.

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.)

The Federal Aviation Administration is a government agency that is in charge of air traffic control. All of the capital equipment (radar, etc.) used by air traffic controllers is purchased through appropriations from Congress. When Apple Corporation purchases new capital equipment, the decision is made by owners and managers that believe the firm can get a return on investment from the new capital because the new capital can be used to produce new and improved goods for Apple customers. Which entity is likely to have more outdated capital and capital in need of repair or replacement? Why? Explain in detail.

16.13 Los Angeles and New York. The Bureau of Labor and Statistics publishes separate consumer price indexes for major metropolitan areas in addition to the national CPI. THe CPI (1982-84 = 100) in July 2015 was 247.1 in Los Angeles and 261.2 in New York.

(a) These numbers tell us that prices rose faster in New York than in Los Angeles between the base period and July 2015. Explain how we know this.

(b) These numbers do not tell us that prices in July 2015 were higher in New York than in Los Angeles. Explain why.

Case: Irasen Foods and Beverages is planning on opening a new plant in 18 months. You have been invited to prepare a plan to hire, select and train almost five-hundreds new employees that will be needed over the next two years.

1. Prepare a plan outline of how to hire and train an entire staff of new employees below the second level of management in one year and have them ready to open the new plant?

2. How should you go about procuring the balance of the five-hundreds  workers needed to staff the plant by the projected full-operations date?

1) Suppose that a certain population of 100 individuals possesses two alleles (A and B) at a certain locus, and initially consists of the following numbers of genotypes: AA = 9, AB = 42, BB= 49.

a) Calculate the initial frequencies of alleles A and B.

b) Now suppose that 16 individuals with genotype BB do not survive to reproduce. Calculate the new allele frequencies among the remaining individuals that do reproduce. Assuming that these remaining individuals mate randomly, calculate the new genotype frequencies in the next generation. Use the following headings to organize your calculations.

  New Allele Frequencies

New Genotype Frequencies