M6_IND3. Steve Jobs is a computer technician in an investment company. He responds to a variety of complaints from investment advisors regarding their computers performance. He receives an average of one computer per hour to repair. It takes him an average of 40 minutes to repair any of these computers. Steve believes that adding a second repair technician would significantly improve his department’s efficiency. He has a friend, Steve Wozniak, who is looking for a job. He estimates that adding an assistant, but still keeping the department running as a single-server system, would double allow computer to be repaired in half the time, an average of 20 minutes to repair these computers. The investment advisors earn $40 for the company, on average, while the computer technicians earn $16 per hour. An investment advisor who does not have access to his computer is unable to generate revenue for the company. a) Consider the performance of the office before the new technician is added. On average, how many computers (to the nearest 0.01 computers) are in the system given the arrival and service rates? b) Consider the performance of the office before the new technician is added. On average, how many hours (to the nearest 0.01 hour) does each computer spend in the system given the arrival and service rates? c) Consider the performance of the office before the new technician is added. Based on the average number of computers in the system, what is the total system cost (technicians cost and waiting cost) per hour (to the nearest $/hour)? d) Consider the performance of the office after the new technician is added. On average, how many computers (to the nearest 0.01 computers) are in the system given the arrival and service rates? e) Consider the performance of the office after the new technician is added. On average, how many hours (to the nearest 0.01 hour) does each computer spend in the system given the arrival and service rates? f) Consider the performance of the office after the new technician is added. Based on the average number of computers in the system, what is the total system cost (technicians cost and waiting cost) per hour (to the nearest 0.01 $/hour)? g) Based on your cost analysis - is it worth it to add another technician?

1-A shielded vial of I131 gives off a reading of 30 mR/hr at 1 meter. If the vial is placed in a drawer lined with 5mm lead, what will the exposure rate be at 1-meter?

(The HVL of lead for I131= 0.21mm)

2-A survey meter reading taken outside the shield surrounding a radionuclide storage area gives a reading of 12.8 mR/hr. Only 99Tcm is being stored. The HVL for lead is 0.27mm. How much lead must be added to bring the reading down to a background reading of 0.02mR/hr?

3-A shielded dose of Tl201 registers as 25mR/hr on an ionization survey meter held at 4 inches from the surface. If the HVL for lead is 0.2mm, what will be the reading at 4 inches after the shielded dose is placed in a lead pig constructed of 1.35 mm thick lead?

4-An unshielded dose of 99mTc MAA gives off a reading of 35mR/hr. You put this dose in a syringe shield which has a thickness of 1.8mm. What would be the exposure when you use this shield while injecting the dose? The HVL of Tc99m =0.27mm.

5-The HVL of lead is 0.27 mm for Tc99m. A dose generates 5300 mR/hr before being shielded.

a-What will be the exposure rate after the dose is placed in a shield made with 0.90 mm of lead?

A thicker shield is used for the same dose above (5300 mR/hr). The shield is made with 3.8 mm of lead.

b-What will be the exposure rate after using this shielding?

6-Someone spills a dose of 99mTc-MIBI on the treadmill and after removing all of the “removable contamination” there is still an exposure of 45mR/hr coming from the treadmill. You need to cover this so that the stress lab can still be used, so this exposure NEEDS to be 0.3mR/hr. How much lead will you need to accomplish this?

7-A radioactive source is giving off 1.5 mr/hr at 1 meter after shielding. Three half value layers are used for shielding. What was the original reading of this source before shielding?

8-A radioactive source is measuring 2 mr/hr at a distance of 1 meter. This source has been shielded with 4 half value layers of lead. What would the reading of the source be if you removed all of the lead?

a-1 Current Value: 152,223,077

a-2 Price per share: 77.66

b-1: Value after recapitalization: 160,480,077

b-2: Price per share: 81.88

c-1: Shares repurchased: ?

c-2: Price per share: ?

d. Value of the equity: ?

*Need help with c-1, c-2, and d. Thanks!

Newkirk, Inc., is an unlevered firm with expected annual earnings before taxes of $22.4 million in perpetuity. The current required return on the firm’s equity is 20 percent, and the firm distributes all of its earnings as dividends at the end of each year. The company has 1.44 million shares of common stock outstanding and is subject to a corporate tax rate of 35 percent. The firm is planning a recapitalization under which it will issue $31.4 million of perpetual 10.4 percent debt and use the proceeds to buy back shares. a-1. Calculate the value of the company before the recapitalization plan is announced. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Current value $ a-2. What is the price per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per share $ b-1. Use the APV method to calculate the company value after the recapitalization plan is announced. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Value after recapitalization $ b-2. What is the price per share after the recapitalization is announced? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per share $ c-1. How many shares will be repurchased? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Shares repurchased c-2. What is the price per share after the recapitalization and repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per share $ d. Use the flow to equity method to calculate the value of the company’s equity after the recapitalization. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Value of the equity $

8. Replacement analysis

Green Moose Industries is a company that produces iBooks, among several other products. Suppose that Green Moose Industries considers replacing its old machine used to make iBooks with a more efficient one, which would cost $1,700 and require $380 annually in operating costs except depreciation. After-tax salvage value of the old machine is $700, while its annual operating costs except depreciation are $1,000. Assume that, regardless of the age of the equipment, Green Moose Industries’s sales revenues are fixed at $4,500 and depreciation on the old machine is $700. Assume also that the tax rate is 40% and the project’s risk-adjusted cost of capital, r, is the same as weighted average cost of capital (WACC) and equals 10%.

Based on the data, net cash flows (NCFs) before replacement are   , and they are constant over four years.

Although Green Moose Industries’s NCFs before replacement are the same over the 4-year period, its NCFs after replacement vary annually. The following table shows depreciation rates over four years.

Complete the following table and calculate incremental cash flows in each year. Hint: Round your answers to the nearest dollar and remember to enter a minus sign if the calculated value is negative.

Next evaluate the incremental cash flows by calculating the net present value (NPV), the internal rate of return (IRR), and the modified IRR (MIRR). Assume again that the cost of financing the new project is the same as the WACC and equals 10%. Hint: Use a spreadsheet program’s functions or use a financial calculator for this task.

Based on the evaluation, replacing the old equipment appears to be a     decision because     .

Dreamland Security Services Inc. had the following account balances as of January 1, 2020:

* Terms: Notes Payable with Trust Bank - $15,000 - 1 yr. at 6% int. rate began on 10/1/19.

During 2020 Dreamland Security Services experienced the following transactions:

1. On January 1, 2020, Dreamland purchased land for $10,000 and a building for $90,000. The land was paid for with cash. The building was paid for with $5,000 cash and the remainder was financed with a 10-year notes payable.

2. Paid the accounts payable balance from 2019.

3. Purchase $500 of supplies on account.

4. Purchased 100 alarm systems (inventory) on account at a cost of $200 each.

5. Paid $6,000 of advertising expense during the year.

6. Sold 95 alarm systems for $400 each. All sales were on account. (Note - Be sure to compute cost of goods sold using the FIFO cost flow method.)

7. Paid $7,500 of utilities expense for the year.

8. Billed $65,000 of monitoring services on account for the year.

9. Replenished the petty cash fund on June 30. The fund had $25 cash remaining and receipts of $90 for yard mowing and $35 for postage.

10. After numerous attempts to collect from customers, the company wrote off $650 of uncollectible accounts receivable.

11. Collected $83,000 of accounts receivable during the year.

12. On July 1, 2020, issued $25,000 of 5 percent, five year bonds. The bonds were issued at 98.

13. On October 1, 2020, paid the note and interest owed to Trust Bank (See Beg. Balance in Notes Payable). (Note - Record Interest Expense for January-September)

14. Paid employees a total of $20,000 for salaries for the year. Federal income taxes withheld amounted to $2,200. The net amount of salaries was paid in cash. (Note - $20,000 is the gross salary amount and the actual amount paid in cash will be less due to the federal income taxes withheld. Ignore employer taxes.)

15. Paid the Federal Income Taxes withheld from salaries.

16. Paid the annual installment on the note used to finance the purchase of the building. The note had an interest rate of 5 percent and annual payments of $11,008.

17. Paid a dividend of $10,000 to the shareholders.

Adjustments:

18. There was $275 of supplies on hand at the end of the year.

19. Recognized the expired rent for the office building for the year.

20. Recognized the uncollectible accounts expense for the year using the allowance method. Dreamland estimates that 2 percent of sales on account will not be collected.

21. Recognized depreciation expense on the equipment. The equipment has a six-year life and a $2,500 salvage value. The company uses straight-line depreciation for the equipment. The equipment was purchased in 2018 and a full year of depreciation was taken in 2018 and in 2019. (Only record 2020 depreciation.)

22. Recognized depreciation expense on the service truck. The service truck has a five-year life and an $8,000 salvage value. The company uses double-declining-balance for the service truck. The truck was purchased in 2018 and a full year of depreciation was taken in 2018 and in 2019. (Only record 2020 depreciation.)

23. Recognized depreciation expense on the building. The building has a 40-year life and a $50,000 salvage value. The company uses straight-line depreciation for the building.

Required:

a. Record the above transactions in general journal form. Round all amounts to nearest whole dollar.

b. Prepare a trial balance.

1. A 3-year-old male infant is brought to the emergency room in the middle of February with fever, vomiting and diarrhea for the past day. He has not been able to keep anything down and he has a watery diarrhea. He goes to daycare and many of his classmates are also sick with the same symptoms. He has tachycardia and a fever (100.2 F). His eyes appear sunken, he has active bowel sounds and his stool is watery and pale. His feces was negative for blood and white blood cells.

2.

On an autumn day a number of people became ill working at the Widget Company. It

                is an industrial plant in the heart of Cincinnati, Ohio. Their symptoms ranged from

               simple coughing and other respiratory symptoms to pneumonia. At least one of fifty

                people showing symptoms died. The company voluntarily closed the building upon

               recommendation from the health department. After all of the water and cooling systems

            at the plant were evaluated and disinfected, it reopened and no new cases were

            reported. What is the causative agent at the factory?

3.

A 35-year-old nurse, developed symptoms of cough, myalgias, headache made worse

            by coughing, substernal chest pain, and high fever. She suspected _________?______

            because an outbreak was in progress and she had recently cared for several patients

            with similar symptoms. During the next three days, she was bedridden because of

            weakness and a persistent fever of 103 F. The symptoms gradually resolved over the

            next few days without specific treatment. After 7 - 10 days, she was able to resume her

            usual activities.