Questions
your firm is evaluting a new capital project. the firm spent 45000 on a market study...



your firm is evaluting a new capital project. the firm spent 45000 on a market study anf 30,000 on consulting three months ago. if the firm approves the project, it will spend 900,000 on new machienry 80,000on installation and 10,000 on shipping. the machien will depreciated via simplified straight line deprecation over its 18 year life. the excepected increase from this new project is 800,000 a year and the expected incremental expenses are 300,000 ayear. in order to start this new project the company will invest 100,000 in working capital. the marginal tax rate is 34%. what is the annual net cash flow per year from this project ???

In: Finance

As of Friday morning, health officials have confirmed at least 39,140 total cases in New York...

As of Friday morning, health officials have confirmed at least 39,140 total cases in New York State. The estimated population of the state was19.45 million residents in 2019.

1- Construct a 99% confidence interval of the percentage of New Yorkers likely infected and interpret your results. National Institute of Allergy and Infectious Diseases director Anthony Fauci says 1/1000 New Yorkers likely infected.

2- Many others claim that the percentage of infected New Yorkers is higher than what Dr. Fauci says. Please, conduct appropriate test of hypothesis to test that claim using a significance level 0.01

In: Statistics and Probability

A company claims that a new manufacturing process changes the mean amount of aluminum needed for...

A company claims that a new manufacturing process changes the mean amount of aluminum needed for cans and therefore changes the weight. Independent random samples of aluminum cans made by the old process and the new process are taken. The summary statistics are given below. Is there evidence at the 5% significance level (or 95% confidence level) to support the claim that the mean weight for all old cans is different than the mean weight for all new cans? Justify fully!

The Old process had a sample of size 25 with a mean of 0.504 and standard deviation of 0.019. The New process had a sample of size 25 with a mean of 0.495 and standard deviation of 0.021.

In: Statistics and Probability

OPEC has certainly been the world's most successful cartel. What did OPEC do to prevent the...

OPEC has certainly been the world's most successful cartel. What did OPEC do to prevent the competition of capitals or creative destruction?

a. it suppressed innovations in new technologies and kept other producers out of the market

b. it managed to keep new technologies and new producers out of the market through monopolistic practices and collusion

c. it was unable to develop strategies to stop or slow down either of these competitions

d. it got the world court to recognize its patents in oil technologies and sued any firm or company that sought to enter the oil market e. it refused to allow new producers to enter the market

In: Economics

linux: Become the root user for this exercise. What command did you use to do this...

linux:

  1. Become the root user for this exercise. What command did you use to do this again?

    $
  2. Now that you are root, create a new user on your system called labsevenuser. What is the command you used to create this user?

    #
  3. Set a new password for the new user you just created in step 2 above. What is the command you used to do this?

    #
  4. Create a new group called awesomepeople. Add the user you created in step 2 to this group. What is the command you used to do this?

    #
  5. Paste the last 5 lines of the /etc/group and /etc/passwd here to show that you executed the commands above.

In: Computer Science

Consider an economy at the steady state according to the Solow Growth Model with a per...

Consider an economy at the steady state according to the Solow Growth Model with a per capita production function  where n=0.04, d=0.08, and s=0.3. Suppose a change in the age profile of the population leads to a reduction of the savings rate to s=0.28. As a result,

consumption initially falls and continues to decline until reaching the new steady state.

consumption initially rises and continues to increase until reaching the new steady state. that is above the original.

consumption initially rises but then decreases to a new steady state level of consumption that is below the the original.

consumption initially falls but then increases to a new steady state level of consumption that is above the the original.

In: Economics

Cusic Music Company is considering the sale of a new sound board used in recording studios....

Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $24,300, and the company expects to sell 1,600 per year. The company currently sells 1,950 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,620 units per year. The old board retails for $22,700. Variable costs are 55 percent of sales, depreciation on the equipment to produce the new board will be $1,275,000 per year, and fixed costs are $3,150,000 per year. If the tax rate is 25 percent, what is the annual OCF for the project?

In: Finance

Cusic Music Company is considering the sale of a new sound board used in recording studios....

Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $23,700, and the company expects to sell 1,540 per year. The company currently sells 1,890 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,560 units per year. The old board retails for $22,100. Variable costs are 55 percent of sales, depreciation on the equipment to produce the new board will be $1,635,000 per year, and fixed costs are $3,000,000 per year. If the tax rate is 24 percent, what is the annual OCF for the project?

In: Finance

“I know headquarters wants us to add that new product line,” said Dell Havasi, manager of...

“I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings Company’s Office Products Division. “But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown.”

Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company’s Office Products Division for the most recent year are given below:


Sales $ 22,835,000
Variable expenses 14,297,200
Contribution margin 8,537,800
Fixed expenses 6,190,000
Net operating income $ 2,347,800
Divisional operating assets $ 4,000,000


The company had an overall return on investment (ROI) of 17.00% last year (considering all divisions). The Office Products Division has an opportunity to add a new product line that would require an additional investment in operating assets of $2,755,000. The cost and revenue characteristics of the new product line per year would be:


Sales $ 9,915,000
Variable expenses 65% of sales
Fixed expenses $2,607,450

Required:  

1. Compute the Office Products Division’s ROI for the most recent year; also compute the ROI as it would appear if the new product line is added. (Round the "Margin", "Turnover" and "ROI" answers to 2 decimal places.)

Find Sales, NOI, Operating Assets, Margin, ROI and Turnover for Present, New Line and Total. Also indicate if each is Favroable or Unfavorable.



2. If you were in Dell Havasi’s position, would you accept or reject the new product line?

Accept
Reject


3. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line?

Adding the new line would Increase the company's overall ROI.
Adding the new line would Decrease the company's overall ROI.


4. Suppose that the company’s minimum required rate of return on operating assets is 14.00% and that performance is evaluated using residual income.

Find Operating Assets, Minimum required return, Minimum net operating income, Actual net operating income , minimum net operating income and residual income for present, new line and total. Indicate Favorable or Unfavorable

a. Compute the Office Products Division’s residual income for the most recent year; also compute the residual income as it would appear if the new product line is added.



b. Under these circumstances, if you were in Dell Havasi’s position, would you accept or reject the new product line?

Accept
Reject

In: Finance

A solid, homogeneous sphere with a mass of m0, a radius of r0 and a density...

A solid, homogeneous sphere with a mass of m0, a radius of r0 and a density of ρ0 is placed in a container of water. Initially the sphere floats and the water level is marked on the side of the container. What happens to the water level, when the original sphere is replaced with a new sphere which has different physical parameters? Notation: r means the water level rises in the container, f means falls, s means stays the same.

r f s The new sphere has a mass of m = m0 and a radius of r > r0.
r f s  The new sphere has a density of ρ = ρ0 and a mass of m > m0.
r f s  The new sphere has a radius of r < r0 and a density of ρ = ρ0.

A solid, homogeneous sphere with a mass of m0, a radius of r0 and a density of ρ0 is placed in a container of water. Initially the sphere floats and the water level is marked on the side of the container. What happens to the water level, when the original sphere is replaced with a new sphere which has different physical parameters? Notation: r means the water level rises in the container, f means falls, s means stays the same. Combination answers like 'f or s' are possible answers in some of the cases.

r f s r or s f or s The new sphere has a radius of r < r0 and a mass of m = m0.
r f s r or s f or s  The new sphere has a mass of m < m0 and a radius of r = r0.
r f s r or s f or s  The new sphere has a density of ρ < ρ0 and a radius of r = r0.

A solid, homogeneous sphere with a mass of m0, a radius of r0 and a density of ρ0 is placed in a container of water. Initially the sphere floats and the water level is marked on the side of the container. What happens to the water level, when the original sphere is replaced with a new sphere which has different physical parameters? Notation: r means the water level rises in the container, f means falls, s means stays the same. Combination answers like 'r or f or s' are possible answers in some of the cases.

r f s r or s f or s r or f or s The new sphere has a density of ρ > ρ0 and a radius of r < r0.
r f s r or s f or s r or f or s  The new sphere has a radius of r > r0 and a mass of m < m0.
r f s r or s f or s r or f or s  The new sphere has a density of ρ > ρ0 and a mass of m < m0.

In: Physics