Suppose that a company has six non-mutually exclusive projects to consider for capital investment in table below. The company has only MM$300 available for investment. Which investment should be selected considering discount rate of 10%? Use NPV, GRR, and PI analysis. Discuss the results.
|
Project |
0 |
1 |
2 |
3 |
4 |
|
A |
- MM$100 |
+ MM$20 |
+ MM$40 |
+ MM$60 |
+ MM$80 |
|
B |
- MM$150 |
- MM$50 |
+ MM$100 |
+ MM$100 |
+ MM$140 |
|
C |
- MM$60 |
+ MM$20 |
+ MM$40 |
+ MM$40 |
- |
|
D |
- MM$100 |
+ MM$60 |
+ MM$60 |
+ MM$100 |
- |
|
E |
- MM$50 |
+ MM$20 |
+ MM$40 |
+ MM$60 |
+ MM$40 |
|
F |
- MM$100 |
+ MM$30 |
+ MM$30 |
+ MM$30 |
+ MM$30 |
PLZ GIVE ANSWER IN WORD OR EXCELL and also ATTACH FILES
In: Finance
Your (turtle) program in python must include: Create four Red turtles and four Blue turtles using one or more lists. • Start each of the Red turtles at a different random location on the left side of the screen within the range of the square formed by (-100, 100) and (0, -100) and each of the Blue turtles at a random location on the right side of the screen within the range of the square formed by (0, 100) and (100, -100). • Each of the red and blue turtles should move randomly. • Draw a boundary for the game as a circle with a 300 unit radius. You will use an invisible turtle to do this. It does not count as one of the turtles on either team. • If a turtle hits the border the turtle should have its color changed to black and should jump back to the center of the screen (0, 0) and continue moving. • All the turtles will move the same speed. • The turtles should continue moving until 1000 time units have elapsed.
In: Computer Science
Develop a program that calculates the final score and the average score for a student from his/her (1)class participation, (2) test, (3) assignment, (4) exam, and (5) practice scores.
The user should enter the name of the student and scores ranging from 0 to 100 for each grading item.
The final score is the sum of all grading items.
The average score is the average of all grading items.
Here is a sample output of the program:
Enter the Student's name: John Smith
Enter Class Participation Score ranging from 0 to 100:
89
Enter Test Score ranging from 0 to 100: 87
Enter Assignment Score ranging from 0 to 100:
67
Enter Exam Score ranging from 0 to 100: 99
Enter Practice Score ranging from 0 to 100:
80
John Smith: Final Score: 422 Average Score:
84.4
In: Computer Science
Consider a hypothetical economy in which households spend $0.75 of each additional dollar they earn and save the remaining $0.25. The following graph shows the economy's initial aggregate-demand curve ().
Suppose the government increases its purchases by $3.75 billion.
Use the green line (triangle symbol) on the following graph to show the aggregate-demand curve () after the multiplier effect takes place.
Hint: Be sure the new aggregate-demand curve () is parallel to . You can see the slope of by selecting it on the following graph.
The following graph shows the money market in equilibrium at an interest rate of 7.5% and a quantity of money equal to $60 billion.
Show the impact of the increase in government purchases on the interest rate by shifting one or both of the curves on the following graph.
Suppose that for each one-percentage-point increase in the interest rate, the level of investment spending declines by $0.5 billion. The change in the interest rate (according to the change you made to the money market in the previous scenario) therefore causes the level of investment spending to (fall/rise) by
.(2.5 billions/ 1.25 bil/ 0.62 bil)
After the multiplier effect is accounted for, the change in investment spending will cause the quantity of output demanded to (decrease/increase) by
(5 bil/1.2 bil/2bil)at each price level. The impact of an increase in government purchases on the interest rate and the level of investment spending is known as the
( multiplier/liquidty preference/ automatic stabilizer/ crowding out) effect.
Use the purple line (diamond symbol) on the graph at the beginning of this problem to show the aggregate-demand curve () after accounting for the impact of the increase in government purchases on the interest rate and the level of investment spending.
Hint: Be sure your final aggregate-demand curve () is parallel to and . You can see the slopes of and by selecting them on the graph.
In: Other
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below.
| Balance Sheets: | ||||||
| 2019 | 2018 | |||||
| Cash and equivalents | $ | 60 | $ | 45 | ||
| Accounts receivable | 275 | 300 | ||||
| Inventories | 375 | 350 | ||||
| Total current assets | $ | 710 | $ | 695 | ||
| Net plant and equipment | 2,000 | 1,490 | ||||
| Total assets | $ | 2,710 | $ | 2,185 | ||
| Accounts payable | $ | 150 | $ | 85 | ||
| Accruals | 75 | 50 | ||||
| Notes payable | 110 | 135 | ||||
| Total current liabilities | $ | 335 | $ | 270 | ||
| Long-term debt | 450 | 290 | ||||
| Common stock | 1,225 | 1,225 | ||||
| Retained earnings | 700 | 400 | ||||
| Total liabilities and equity | $ | 2,710 | $ | 2,185 | ||
| Income Statements: | |||||
| 2019 | 2018 | ||||
| Sales | $ | 1,885 | $ | 1,425 | |
| Operating costs excluding depreciation | 1,250 | 1,000 | |||
| EBITDA | $ | 635 | $ | 425 | |
| Depreciation and amortization | 100 | 75 | |||
| EBIT | $ | 535 | $ | 350 | |
| Interest | 63 | 46 | |||
| EBT | $ | 472 | $ | 304 | |
| Taxes (25%) | 118 | 76 | |||
| Net income | $ | 354 | $ | 228 | |
| Dividends paid | $ | 54 | $ | 48 | |
| Addition to retained earnings | $ | 300 | $ | 180 | |
| Shares outstanding | 100 | 100 | |||
| Price | $ | 25.00 | $ | 22.50 | |
| WACC | 10.00 | % | |||
1. What is the firm's 2019 current ratio? Round your answer to two decimal places.
1a. The 2019 current ratio indicates that Rosnan has -Select- insufficient,sufficient current assets to meet its current obligations as they come due.
2. What is the firm's 2019 total assets turnover ratio? Round your answer to four decimal places.
2a. Given the 2019 current and total assets turnover ratios calculated above, if Rosnan's 2019 quick ratio is 1.0 then an analyst might conclude that Rosnan's fixed assets are managed -Select-efficiently,inefficiently.
3. What is the firm's 2019 debt-to-capital ratio? Round your answer to two decimal places.
%
3a. If the industry average debt-to-capital ratio is 30%, then Rosnan's creditors have a -Select-smaller,bigger cushion than indicated by the industry average.
4. What is the firm's 2019 profit margin? Round your answer to two decimal places.
%
4a. If the industry average profit margin is 12%, then Rosnan's lower than average debt-to-capital ratio might be one reason for its high profit margin. -Select-True,False
5. What is the firm's 2019 price/earnings ratio? Round your answer to two decimal places.
6. Using the DuPont equation, what is the firm's 2019 ROE? Round your answer to two decimal places.
In: Finance
Quantitative Problem: Rosnan Industries' 2014 and 2013 balance sheets and income statements are shown below.
| Balance Sheets: | |||
| 2014 | 2013 | ||
| Cash and equivalents | $80 | $65 | |
| Accounts receivable | 275 | 300 | |
| Inventories | 375 | 350 | |
| Total current assets | $730 | $715 | |
| Net plant and equipment | 2,000 | 1,490 | |
| Total assets | $2,730 | $2,205 | |
| Accounts payable | $150 | $85 | |
| Accruals | 75 | 50 | |
| Notes payable | 130 | 155 | |
| Total current liabilities | $355 | $290 | |
| Long-term debt | 450 | 290 | |
| Common stock | 1,225 | 1,225 | |
| Retained earnings | 700 | 400 | |
| Total liabilities and equity | $2,730 | $2,205 | |
| Income Statements: | |||
| 2014 | 2013 | ||
| Sales | $2,000 | $1,500 | |
| Operating costs excluding depreciation | 1,250 | 1,000 | |
| EBITDA | $750 | $500 | |
| Depreciation and amortization | 100 | 75 | |
| EBIT | $650 | $425 | |
| Interest | 62 | 45 | |
| EBT | $588 | $380 | |
| Taxes (40%) | 235 | 152 | |
| Net income | $353 | $228 | |
| Dividends paid | $53 | $48 | |
| Addition to retained earnings | $300 | $180 | |
| Shares outstanding | 100 | 100 | |
| Price | $25.00 | $22.50 | |
| WACC | 10.00% | ||
What is the firm’s 2014 current ratio? Round your answer to two decimal places.
The 2014 current ratio indicates that Rosnan has
-Select-insufficientsufficientCorrect 1 of Item 3 current assets to
meet its current obligations as they come due.
What is the firm’s 2014 total assets turnover ratio? Round your
answer to four decimal places.
Given the 2014 current and total assets turnover ratios
calculated above, if Rosnan’s 2014 quick ratio is 1.0 then an
analyst might conclude that Rosnan’s fixed assets are managed
-Select-efficientlyinefficientlyCorrect 1 of Item 4.
What is the firm’s 2014 debt-to-capital ratio? Round your answer to
two decimal places.
%
If the industry average debt-to-capital ratio is 30%, then
Rosnan’s creditors have a -Select-smallerbiggerCorrect 1 of Item 5
cushion than indicated by the industry average.
What is the firm’s 2014 profit margin? Round your answer to two
decimal places.
%
If the industry average profit margin is 12%, then Rosnan’s
lower than average debt-to-capital ratio might be one reason for
its high profit margin.
-Select-TrueFalseCorrect 1 of Item 6
What is the firm’s 2014 price/earnings ratio? Round your answer to two decimal places.
Using the DuPont equation, what is the firm’s 2014 ROE? Round
your answer to two decimal places.
%
In: Finance
Analysis of Financial Statements: Tying the Ratios Together
The DuPont equation shows the relationships among asset management, debt management, and -Select-liquiditymarketprofitabilityCorrect 1 of Item 1 ratios. Management can use the DuPont equation to analyze ways of improving the firm's performance.
Ratio analysis is important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and interpreting numbers.
-Select-QuantitativeQualitativeForeignCorrect 2 of Item 1
factors also need to be considered.
Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below.
| Balance Sheets: | |||
| 2018 | 2017 | ||
| Cash and equivalents | $80 | $65 | |
| Accounts receivable | 275 | 300 | |
| Inventories | 375 | 350 | |
| Total current assets | $730 | $715 | |
| Net plant and equipment | 2,000 | 1,490 | |
| Total assets | $2,730 | $2,205 | |
| Accounts payable | $150 | $85 | |
| Accruals | 75 | 50 | |
| Notes payable | 130 | 155 | |
| Total current liabilities | $355 | $290 | |
| Long-term debt | 450 | 290 | |
| Common stock | 1,225 | 1,225 | |
| Retained earnings | 700 | 400 | |
| Total liabilities and equity | $2,730 | $2,205 | |
| Income Statements: | |||
| 2018 | 2017 | ||
| Sales | $2,000 | $1,500 | |
| Operating costs excluding depreciation | 1,250 | 1,000 | |
| EBITDA | $750 | $500 | |
| Depreciation and amortization | 100 | 75 | |
| EBIT | $650 | $425 | |
| Interest | 62 | 45 | |
| EBT | $588 | $380 | |
| Taxes (40%) | 235 | 152 | |
| Net income | $353 | $228 | |
| Dividends paid | $53 | $48 | |
| Addition to retained earnings | $300 | $180 | |
| Shares outstanding | 100 | 100 | |
| Price | $25.00 | $22.50 | |
| WACC | 10.00% | ||
What is the firm’s 2018 current ratio? Round your answer to two decimal places.
If the industry average debt-to-total-assets ratio is 30%, then
Rosnan’s creditors have a -Select-smallerbiggerCorrect 1 of Item
3 cushion than indicated by the industry average.
What is the firm’s 2018 net profit margin? Round your answer to
four decimal places.
%
If the industry average profit margin is 12%, then Rosnan’s
lower than average debt-to-total-assets ratio might be one reason
for its high profit margin.
-Select-TrueFalseCorrect 1 of Item 4
What is the firm’s 2018 price/earnings ratio? Round your answer to two decimal places.
Using the DuPont equation, what is the firm’s 2018 ROE? Round
your answer to two decimal places.
%
In: Finance
Quantitative Problem: Rosnan Industries' 2014 and 2013 balance sheets and income statements are shown below.
| Balance Sheets: | |||
| 2014 | 2013 | ||
| Cash and equivalents | $70 | $55 | |
| Accounts receivable | 275 | 300 | |
| Inventories | 375 | 350 | |
| Total current assets | $720 | $705 | |
| Net plant and equipment | 2,000 | 1,490 | |
| Total assets | $2,720 | $2,195 | |
| Accounts payable | $150 | $85 | |
| Accruals | 75 | 50 | |
| Notes payable | 120 | 145 | |
| Total current liabilities | $345 | $280 | |
| Long-term debt | 450 | 290 | |
| Common stock | 1,225 | 1,225 | |
| Retained earnings | 700 | 400 | |
| Total liabilities and equity | $2,720 | $2,195 | |
| Income Statements: | |||
| 2014 | 2013 | ||
| Sales | $2,000 | $1,500 | |
| Operating costs excluding depreciation | 1,250 | 1,000 | |
| EBITDA | $750 | $500 | |
| Depreciation and amortization | 100 | 75 | |
| EBIT | $650 | $425 | |
| Interest | 62 | 45 | |
| EBT | $588 | $380 | |
| Taxes (40%) | 235 | 152 | |
| Net income | $353 | $228 | |
| Dividends paid | $53 | $48 | |
| Addition to retained earnings | $300 | $180 | |
| Shares outstanding | 100 | 100 | |
| Price | $25.00 | $22.50 | |
| WACC | 10.00% | ||
What is the firm’s 2014 current ratio? Round your answer to two decimal places.
The 2014 current ratio indicates that Rosnan has
sufficient/insufficient current assets to meet its current
obligations as they come due.
What is the firm’s 2014 total assets turnover ratio? Round your
answer to four decimal places.
Given the 2014 current and total assets turnover ratios
calculated above, if Rosnan’s 2014 quick ratio is 1.0 then an
analyst might conclude that Rosnan’s fixed assets are managed
-Select-efficiently/inefficiently
What is the firm’s 2014 debt-to-capital ratio? Round your answer to
two decimal places.
%
If the industry average debt-to-capital ratio is 30%, then
Rosnan’s creditors have a -Select-smaller/bigger cushion than
indicated by the industry average.
What is the firm’s 2014 profit margin? Round your answer to two
decimal places.
%
If the industry average profit margin is 12%, then Rosnan’s
lower than average debt-to-capital ratio might be one reason for
its high profit margin.
-Select-True/FalseCorrect
What is the firm’s 2014 price/earnings ratio? Round your answer to two decimal places.
Using the DuPont equation, what is the firm’s 2014 ROE? Round
your answer to two decimal places.
%
In: Finance
Question 15 (3 points)
Suppose the labor force increases due to immigration. Using the models of Chapter 3, determine the effect on GDP and the real interest rate.
|
a |
GDP increases, the real interest rate falls. |
|
b |
GDP increases, the real interest rate increases. |
|
c |
GDP increases, the real interest rate does not change. |
|
d |
GDP does not change, the real interest rate increases. |
|
e |
GDP does not change, and the real interest rate also does not change. |
Question 16 (3 points)
You need to purchase a particular economics textbook for a course next semester. You want to get the best price, so you compare the prices charged by the campus bookstore, Amazon.com, and other textbook sellers. This only takes a few minutes, and you end up saving $30.
This story illustrates which of the following functions of money?
|
a |
asset of investment |
|
b |
unit of account |
|
c |
store of value |
|
d |
medium of exchange |
Question 17 (3 points)
Here is the balance sheet for ABC Bank:
| assets | liabilities & capital |
| reserves $100 | deposits $600 |
| loans $500 | debt/borrowings $200 |
| securities $400 | capital ? |
How much capital does ABC Bank have?
|
a |
$100 |
|
b |
$200 |
|
c |
$400 |
|
d |
$600 |
|
e |
$1000 |
In: Economics
Paco's Painting Service does interior and exterior house painting.
They have a production function that uses three factors: brushes
(?B), paint (?P), and labor (?L). In the short run, Paco's has
already committed to orders of brushes and paint, but can adjust
the number of hours of labor they use from week to week. Therefore,
their short-run production function depends only on labor and is
given by ?(?)= √L/2. which implies that Paco's marginal product of
labor is ???=1/4√L.
Suppose that Paco charges $4600 for a paint job and that the
current wage he must pay his workers is $30 per hour.
How many worker hours should Paco use to maximize his profit?
_________
How many painting jobs will Paco complete using this number of
worker hours? ____19.17______
In addition to hiring workers, Paco spends $150 on brushes (50
brushes at $3 each) and $3000 on paint (100 gallons at $30 per
gallon). What is Paco's profit using these values for his three
factors (labor, brushes, and paint)? __________
Part 2
Now suppose that Paco is able to negotiate a lower price for
paint and can buy the 100 gallons he needs for $27 instead of $30.
Due to this cost savings, Paco's profit-maximizing choice of labor
will stay the same and he will use ___________ worker hours.
He will complete ______19.17_____ projects (houses painted) and
earn a profit of ___________
In: Economics