1. Project Evaluation --Cash Flows question:

Adams Video is considering whether to make an investment in a new type of technology. The following factors are considered in the initial discussion:i). The company has already spent $3 million researching the technology; ii). The new technology will affect the cash flows produced by the other operations of the company; iii). If the investment is not made, then the company will be able to sell one of its laboratories for $2 million.

a) Which of the above factors should the company consider when it decides whether to undertake the investment? [4 Marks]

b) Explain why for each of the factors. [6 Marks]

c) Explain why we must use incremental cash flows in project evaluation.

2. Firm Value with FCF and WACC:

a) Describe the FCF definition (in terms of its underlying object or asset) and its practical application; [8 Marks]

b) Discuss the special function of WACC.

3. Corporate Governance question:

a) Provide a simple definition of Corporate Governance (in traditional Corporate Finance terms) in your own words; [8 Marks]

b) Discuss the possible relation between CEO compensation and company performance in terms of corporate risk and average equity return.

4. Capital Structure Question:

a) Briefly define the terms: Business Risk and Financial risk; [8 Marks]

b) Describe how the business risk and financial risk could be included in the value of WACC, which is calculated with the formula:

WACC = Wd * Rd * (1-Tc)+We * Re

You are the technology auditor for a medium size online retailer. With the growth, it has been very difficult for the Information Technology (IT) group to keep up with the hardware requirements and new software for all the various smartphone applications. Although there would be reduction of most of the IT staff the CIO has done a complete analysis of moving to a Cloud Computing solution with Amazon Web Services. With this change, all IT functions for the primary application of customer order processing and fulfillment would be handled through Amazon. The reduction in ongoing costs would be almost fifty percent along with major capital expenditures for upgrades if they were to keep processing in-house. Much of the in-house technology is outdated from a web application and regulatory standpoint.

Amazon Web Services is the largest provider of integrated Cloud Computing Services and offers a complete set of infrastructure and application services. Many organizations have lowered costs, including your competitors allowing them to lower costs and gain market share. One of the key benefits of cloud computing is the opportunity to replace up-front capital infrastructure expenses with low variable costs that scale as the business grows.

You have been asked by senior management to assist with the Amazon project and the evaluation of the controls.

a. Describe the five most significant areas of controls concern that you would like to express to the senior management in the transition to Amazon? Make sure your control concerns are consistent with the facts of the case.

b. How would you propose the organization get comfortable with the controls at Amazon    prior to signing the contract? Be specific.

c. Assuming the contract is signed and processing moves to Amazon, what role can internal auditing play in providing assurance to the company. Let’s assume that internal auditing will not be able to perform on-site audits.

Describe 3 advantages and 3 disadvantages of the use of the emerging technology in the accounting profession. For the advantages, you should describe how/why these are advantages to the accounting profession and for the disadvantages, you should describe why they are disadvantages, how serious these disadvantages are and whether there are any ways to overcome these disadvantages

Advancements in technology in healthcare has allowed for and promoted the use of genetic screening. This approach is becoming more widely available. Today we can conduct prenatal and newborn screening, diagnostic screening for chromosomal issues, carrier screening such as for cystic fibrosis, and predictability screening for possible genetic mutations such as in breast cancer. The future of genetic screening will allow us to fully know our risks so that treatments can be targeted with success. With this precision however there are also ethical issues and dilemmas. When thinking about these issues and dilemmas, what are three ethical considerations arising from the use of genetic screening?

Please address the question from the perspectives both of prenatal screening and screening of adult family members of those with diseases that can be genetically linked. Consider the costs, the potential for discrimination, and how the treatment/prevention can change based on the knowledge of a genetic disease.

This exercise is designed to be solved using technology such as calculators or computer spreadsheets.

You borrow $18,000 with a term of four years at an APR of 8%. Make an amortization table. How much equity have you built up halfway through the term? (Round your answer to two decimal places.)

Write a report about " 5G Technology" and commit to a number of pages .  

Chapter 1                   Introduction (3 Pages)

Background of the Study

Chapter 2                   Discussion   (10 Pages)

The Block /Schematic Diagram of the System

The System Implementation

Strengths

Drawbacks

Chapter 3                   Results      (5 Pages)

Conclusion

Scope and limitations

Recommendation

References      (1 Page)

Suppose that Y has a binomial distribution with p = 0.40.

(a) Use technology and the normal approximation to the binomial distribution to compute the exact and approximate values of P(Y ≤ μ + 2) for n = 5, 10, 15, and 20. For each sample size, pay attention to the shapes of the binomial histograms and to how close the approximations are to the exact binomial probabilities. (Round your answers to five decimal places.)

n = 5

exact value P(Y ≤ μ + 2) =

approximate value P(Y ≤ μ + 2) ≈

n = 10

exact value P(Y ≤ μ + 2) =

approximate value P(Y ≤ μ + 2) ≈

n = 15

exact value P(Y ≤ μ + 2) =

approximate value P(Y ≤ μ + 2) ≈

n = 20

exact value P(Y ≤ μ + 2) =

approximate value P(Y ≤ μ + 2) ≈

b) Refer to part (a). What did you notice about the shapes of the binomial histograms as the sample size increased?

1.) The binomial histograms appear less mound shaped as the sample size increases.

2.) The binomial histograms appear the same as the sample size increases.

3.) The binomial histograms appear more mound shaped as the sample size increases.

(c) According to the rule of thumb for the adequacy of the normal approximation, how large must n be for the approximation to be adequate? (Round your answer up to the nearest whole number.)

n >

Is this consistent with what you observed in parts (a) and (b)?

1.) Yes, because the approximations for larger values of n are much better than the approximations for smaller values of n.

2.) No, because the approximations for smaller values of n are just as good as the approximations for larger values of n.

1. The electricity technology (on the roof of all houses) lowers the cost of electricity for each house. Evaluate the statement: each household benefits equally.

2. Justify why the rational expectation of increased future demand in electricity does not cause the above supply and demand curves to change