Explain what is meant by the total cost approach to logistics. Illustrate your answer with a diagram

Blossom Ltd. purchased a new machine on April 4, 2014, at a cost of $ 160,000. The company estimated that the machine would have a residual value of $ 14,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,600 hours in 2014; 2,400 hours in 2015; 2,200 hours in 2016; 2,000 hours in 2017; and 1,800 hours in 2018. Blossom has a December 31 year end.

Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.)

(1) Straight-line for 2014 through to 2018.
(2) Diminishing-balance using double the straight-line rate for 2014 through to 2018.

(3) Units-of-production for 2014 through to 2018.

Cost savings are likely to be greatest when firms with dissimilar operations are merged or consolidated. True or False

Monty Corp. purchased a new machine on October 1, 2019, at a cost of $124,000. The company estimated that the machine will have a salvage value of $15,000. The machine is expected to be used for 10,000 working hours during its 4-year life.

Compute the depreciation expense under straight-line method for 2019. (Round answer to 0 decimal places, e.g. 2,125.)

Compute the depreciation expense under units-of-activity for 2019, assuming machine usage was 1,860 hours. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answer to 2 decimal places, e.g. 2,125.25.)

Compute the depreciation expense under declining-balance using double the straight-line rate for 2019 and 2020. (Round answers to 0 decimal places, e.g. 2,125.)

Progress Incorporated is considering buying a new machine to increase production. It will cost $200,000 to purchase, $10,000 to modify and $5,000 to have it installed. It has a five-year class life. At the end of three years they plan to sell the machine for $95,000. The new machine will allow Progress to increase revenues by $80,000 each year but expenses will increase by $5,000 each year. Inventory will decrease by $6,000 and wages payable will increase by $2,000 if the machine is purchased. Straight-line depreciation will be used. Progress’s marginal tax rate is 34% and its cost of capital is 7%. Should PI purchase the new machine? Complete the following parts:

XYZ purchased a machine 5 years ago at a cost of $95,000. The machine had an expected life of 10 years at the time of purchase, and it is being depreciated by the straight-line method by $9,500 per year. If the machine is not replaced, it can be sold for $11,000 at the end of its useful life. A new machine can be purchased for $170,000, including installation costs. During its 5-year life, it will reduce cash operating expenses by $55,000 per year. Sales are not expected to change. At the end of its useful life, the machine is estimated to be worthless. MACRS depreciation will be used and the machine will be depreciated over its 3-year class life rather than its 5-year economic life; so the applicable depreciation rates are 33%, 45%, 15%, and 7%. The old machine can be sold today for $65,000. The firm's tax rate is 45%. The appropriate WACC is 17%.

a. If the new machine is purchased, what is the amount of the initial cash flow at Year 0?

b. What are the incremental cash flows that will occur at the end of Years 1 through 5?

c. What is the NPV of this project? Should the old machine be replaced? Explain.

Please mention the keys step by step that were used so I can solve it, ON FINANCIAL CALCULATOR BA II PLUS, otherwise your solution is of no value! NO EXCEL ANSWERS!

True/False

If we take into consideration the cost of monitoring and enforcing environmental regulations, it is efficient to allow more emissions.

True/False

A polluting factory operates in a small town. If most of the town's young people leave to go work in a larger city, the marginal damages curve will shift downward, increasing the socially-efficient level of emissions in the town.

Terlingua Transportation Co. (TTC) is a regional shipper. It is most cost efficient for the company’s diesel fuel trucks to refuel at retail outlets along the shipping routes. However, retail prices tend to be volatile. Hence, managers at TTC have decided to hedge future retail purchases of fuel by means of New York Harbor ULSD (ultra low sulphur diesel) futures contracts. Each contract has 42,000 gallons as the underlying asset. You are a financial analyst for TTC. Today is April. Your immediate task is to hedge the price risk of diesel future purchases in three months (i.e., in July). You expect that TTC trucks will need to buy a total of 700,000 gallons of diesel fuel in July. You plan to apply dynamic hedging. Based on calculations for a 3-month hedge, you determine that your company needs to take a long position in 20 of the August futures contracts today. Time passes. Today now is May. Forecast for quantity of the July purchase of diesel fuel is unchanged. You plan to continue hedging with August contracts. You have the following statistical data. All spot prices are retail prices for diesel fuel. All futures prices are for the New York Harbor ULSD futures. Standard deviations are in cents per gallon. standard deviation of 1-month changes in spot prices: 14 standard deviation of 2-month changes in spot prices: 24 standard deviation of 3-month changes in spot prices: 34 standard deviation of 1-month changes in futures prices: 15 standard deviation of 2-month changes in futures prices: 27 standard deviation of 3-month changes in futures prices: 36 1-month correlation between spot and futures prices: 1.10 2-month correlation between spot and futures prices: 1.17 3-month correlation between spot and futures prices: 1.23 In your calculations for optimal number of futures contracts, you optimize using the formulas for cross hedging. Calculate the change in optimal number of futures contracts that your company should be long. Report the change as an integer value. If you decrease the number of contracts, report a negative number. (When you calculate the new value for N*, round to the nearest integer.)

Assume that the marginal abatement cost curves (MACs) are linear and that the firm currently faces a standard imposed at the optimal level of pollution. Suppose a new technology can be adopted at zero cost, which causes the MAC to swing downwards. Also, assume that if the firm adopts the technology, the regulator automatically adjusts the standard to its new optimal level. Under what conditions will the firm adopt the new technology?

why is it important to achieve a balance between clinical efficacy and economic worth ( cost effectiveness) of medical treatments ? ( 300 words)