Nobel Tech Inc. is building a new production line. The cost of the production line is $3 million in the current year and $2 million in the following year. The production line is expected to bring in cash inflows of $1.6 million in year 2, and $2 million each year from year 3 to year 7. The company uses a cost of capital of 10% on all the projects.

The discounted payback period of this project is ____________.

Group of answer choices

a. 4.5 years

b. 6.5 years

c. 3.7 years

d. 5.5 years

A Health Research company faces a cost of borrowing of 7%. If the firm receives only the private benefits of investing in R&D, then we show its demand curve for financial capital by D_Private, as depicted in the table below. Because there are spillover benefits, society would find it optimal to have more investment. If the firm could keep the social benefits of its investment for itself, its demand curve for financial capital would be social and it would willing to borrow more money to do so. With the data below draw the private demand curve and the social demand curve and the borrowing costs as a horizontal line. Now determine both the amount of financial capital that would be invested if the firm were only considering its private benefit and the amount that would be undertaken if the firm took into account the social benefit that would result from the research.

Daily Enterprises is purchasing a $10.36 million machine. It will cost $66,800.00 to transport and install the machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.60 million per year along with incremental costs of $1.48 million per year. Daily’s marginal tax rate is 36.00%.

The cost of capital for the firm is 12.00%.

(answer in dollars..so convert millions to dollars)

What is the year 0 cash flow for the project?

What is the yearly cash flow from the project?

The project will run for 5 years. What is the NPV of the project at the current cost of capital?

Peter Johnson, the CFO of Homer Industries, Inc is trying to determine the Weighted Cost of Capital (WACC) based on two different capital structures under consideration to fund a new project. Assume the company’s tax rate is 30%.

1-a. Complete the table below to determine the WACC for each of the two capital structure scenarios. (Enter your answer as a whole percentage rounded to 2 decimal places (e.g. .3555 should be entered as 35.55).)

1-b. Which capital structure shall Mr. Johnson choose to fund the new project?

• Scenario 1

• Scenario 2

Part 2

Assume the new project’s operating cash flows for the upcoming 5 years are as follows:

2-a. What are the WACC (restated from Part 1), NPV, IRR, and payback years of this project? (Negative values should be entered with a minus sign. All answers should be entered rounded to 2 decimal places. Your answers for WACC and IRR should be whole percentages (e.g. .3555 should be entered as 35.55).)

2-b. Shall the company accept or reject this project based on the outcome using the net present value (NPV) method?

• Project A should be accepted

• Project A should be rejected

An automated inspection system purchased at a cost of $200,000 by Mega Tech Engineering and has a useful life of 7 years. The Salvage Value is expected to be zero. The system was sold after 4 years for $150,000. Determine the depreciation recapture on this equipment. Calculate the depreciation recapture using the following methods:

A) SL

B) SOYD

C) MACRS

Show full work with hand calculations as well as excel document showing how you calculated everything out so I can learn it for myself. Thank you in advance!

An automated inspection system purchased at a cost of $200,000 by Mega Tech Engineering and has a useful life of 7 years. The Salvage Value is expected to be zero. The system was sold after 4 years for $150,000. Determine the depreciation recapture on this equipment. Calculate the depreciation recapture using the following methods:

A) SL

B) SOYD

C) MACRS

Show full work with hand calculations as well as excel document showing how you calculated everything out so I can learn it for myself. Thank you in advance!

If the unit sales price is $12, the unit variable cost is $7.00 and fixed costs are $125,000; what is the,

break-even quantity in # of units? ___________________________________

Please Show steps

In a fairly recent cost analysis study, it was found that Medicaid policy barriers impacted the rates of unintended pregnancies and abortions, which resulted in a public cost of ________ dollars.

Question 2 (1 point)

Chris Jennings, of Jennings Policy Strategies, has worked on health policy under which two presidential administrations?

Question 3 (1 point)

True or false? If the Affordable Care Act is repealed, a financially viable replacement option will be difficult to construct.

True

False

Question 4 (1 point)

True or false? There is a linear relationship between rulemaking and the operating activities involved in implementing and modifying a policy.

True

False

Question 5 (1 point)

________ is the process through which executive branch entities create instructions that guide the implementation process of new policies.

Question 6 (1 point)

The Pharmaceutical Research and Manufacturers of America (PhRMA) believes that policy modification is in order for the expanding ________ program due to market distortions.

Question 7 (1 point)

A strong example of incrementalism in health policy can be seen in which policy/program?

Question 8 (1 point)

One example of an approach to policy analysis and modification is to base assessments on ________ evaluations.

Question 9 (1 point)

Developing a new medication is a lengthy and complex process, taking an average of ________ years.

Question 10 (1 point)

When policymakers review a policy in action, they must evaluate it against the original ________.

The Cost of Producing Wine at Only a Small Fraction of the Price

Most consumer goods are not sold by the manufacturer. Instead, they are produced by the manufacturer, who sells to a wholesaler, who in turn sells to a retailer, who sells to the public. Such is the case with most wine.

There has been an outcry in recent years over increases wine in prices. Although prices have risen sharply, the multilevel market structure and the markup that occurs at the wholesale and retail levels have a much larger role in the price increases than the production of the wine itself. Total production costs for a typical $24 bottle of wine are just $4.92, or about 20.4% of the final price, whereas wholesale and retail markups together make up 40% of the final price. Not surprisingly, raw materials (grapes) are the single biggest cost. The cost of the grapes may be as much as 60% of total production costs but varies greatly from lower-quality inexpensive wines to the highest quality wines. The second-highest cost for many vintners is the barrels used to ferment the wine. French oak barrels cost as much as $700 apiece and last only a few years. The other major production cost, other than the actual physical plant where the winemaking occurs, is time. Quality wines spend 2–2 ½ years aging in barrels and then an additional 8 months in bottles before being ready for sale.

1. How much substitutability do you suppose exists between inputs in winemaking? How might this factor affect efforts to cut costs?
2. If a firm were to find a new technology that cut the required aging time in half, how would it affect the demand for other inputs?