Consider the plan for a new exhibit and convention center. The costs are given as follows: Initial costs of $40 million with an expansion costing $8 million 10 years from now. Annual operating cost is $250,000 per year. Net revenue expectation is as follows: $190,000 the first year increasing by $20,000 per year for 4 additional years and then leveling off until year 10; $350,000 in year 11 and thereafter. Find the PW for this project.(MARR is 6%)

Consider the following project being analyzed for possible investment at ABC Corp. Initial Cost –$50 Inflow Year 1 $15 Inflow Year 2 $15 Inflow Year 3 $20 Inflow Year 4 $10 Inflow Year 5 $10 All amounts are in millions. The required return for the project is 8%. The project’s profitability index is: (Enter your answer out to two decimal places. As an example, you would enter 1.50 as 1.50)

Python programming problem!

Suppose that there is a json file called data from the desktop. I want to print the value with the key of "year" and "country".

Json file below:

{

"A":{

"year":11,

"grade":A,

"country":America},

"B":{

"year":18,

"grade":C,

"country":England},

"C":{

"year":19,

"grade":B,

"country":China},}

I want a code that I can only replace the name of key from year to grade and the code could be work.

Question 2 RTA is considering two options for its new office blocie High Initial Cost M & Costs = $ 4.5M / (ye) year ; Benefit = $ 11 M/year Disbenefits =$ 2M per year Life = 10 years ; Low Rise: Initial Cost= $ 54 M; M &O Costs =$ 3.5 M /year ; $ 15 Myear ; Disbenefits =$ 4.5 Mper year 20 years . Use j=11\% for both options .

You consider a new piece of equipment that will cost $400,000, and will require $20,000 for shipping and installation. NWC will increase immediately by $25,000. The project will last 3 years and the equipment has a 5 year class life. Revenues will increase by $220,000/year, and defect costs will decrease by $220,000/year. Operating costs will increase by $30,000/year. The market value of the equipment after year 3 is $200,000. The cost of capital is 12%; marginal tax rate is 30%. What is the NPV?

1. Your friend Nigel is a management graduate and therefore has little chance of finding a job outside the fast-food industry. Luckily for him, Nigel's rich uncle has left him $20 million in his will. Having been a management student, Nigel partied while you studied. In fact, he took no courses in finance and thus knows nothing about investment. In a drunken stupor, late one Saturday night Nigel watched an interview with the Guru Jack ma. The Guru claims material wealth lies beneath the ground in Melbourne. It is clear from the tone of the interview, the title of the documentary was "An interview with a crackpot," that the interviewer and the "experts" on the show think the Guru is insane. However, Nigel believes in the Guru because his management training taught him to believe in gurus (Peter Drucker, for example). Nigel decides to use his new-found fortune to prove the Guru correct, making himself one of the richest people in Australia in the process! Nigel knows you have superior intellect (otherwise you wouldn't be in Finance) and asks you to work out the details. After some discreet investigation you find the homes and land can be purchased for $15 million. In addition, the local council insist on a $4 million fee for defacing the views from the city. Finally, it costs $1 million to lease the mining equipment. You and Nigel meet with the Guru and after several hours of meditation the Guru provides you with estimated annual after-tax cash-flows. These cash-flows are in millions and are provided to you below in table 2-1. Nigel thinks the cash-flows sound fantastic (compared to a career flipping burgers. Who wouldn't), you however decide to check the numbers using what you have learned in Finance. You believe the project is very risky and therefore in consultation with Westpac Bank Risk Management team decide to use a discount rate of 23%.

1. Should Nigel invest his fortune based on the crackpot's ideas?

2. Would your decision change if you used a discount rate of 18% or 10% ? Support the answer with the NPV and IRR.

              Table 2-1

               Projected Cash Flows

The Daniels Tool & Die Corporation has been in existence for a little over 3 years, and sales have been increasing each year.  A job-order cost system is used.  Factory overhead is applied to jobs based on direct labor hours, utilizing the full absorption costing method.  Overapplied or underapplied overhead is treated as an adjustment to cost of goods sold. The company’s income statements for the last 2 years are presented below:

Daniels Tool & Die Corporation

Year 3-Year 4 Comparative Income Statements

                                                                                                            Year 3               Year 4

Sales                                                                                                    $840,000         $1,015,000

Cost of goods sold:

  Finished goods, 1/1                                                                                  25,000                 18,000

  Cost of goods manufactured                                                                   548,000              657,600

     Total available                                                                                     573,000              675,600

  Finished goods, 12/31                                                                              18,000                 14,000

     Cost of goods sold before overhead adjustment                                   555,000              661,600

  Underapplied factory overhead                                                                36,000                 14,400

     Cost of goods sold                                                                               591,000              676,000

  Gross profit                                                                                           249,000              339,000

  Selling expenses                                                                                      82,000                 95,000

  Administrative expenses                                                                          70,000                 75,000

     Total operating expenses                                                                    152,000              170,000

          Operating income                                                                             97,000               169,000

Daniels Tool & Die Corporation

Inventory Balances

                                                                        1/1/Year 3        12/31/Year 3    12/31/Year 4

  Raw material                                                  22,000             30,000             10,000

  Work-in-process costs                                     40,000             48,000             64,000

  Direct labor hours                                             1,335               1,600               2,100

  Finished goods cost                                         25,000             18,000             14,000

  Direct labor hours                                             1,450               1,050                  820

Daniels used the same predetermined overhead rate in applying overhead to production orders in both Year 3 and Year 4.  The rate was based on the following estimates:

                        Fixed factory overhead                                     $25,000

                        Variable factory overhead                                 155,000

                        Direct labor hours                                              25,000

                        Direct labor costs                                             150,000

In Year 3 and Year 4, actual direct labor hours expended were 20,000 and 23,000, respectively. Raw materials put into production were $292,000 in Year 3 and $370,000 in Year 4.  Actual fixed overhead was $37,400 for Year 4 and $42,300 for Year 3, and the planned direct labor rate was the direct labor rate achieved.

For both years, all the reported administrative costs were fixed, while the variable portion of the reporting selling expenses result from a commission of 5% of sales revenue.

Questions

For the year ended December 31, Year 4, prepare a revised income statement utilizing the variable (direct) costing method.  Be sure to include contribution margin.

Prepare a numerical reconciliation of the difference in operating income between Daniels’ Year 4 income statement prepared on the basis of absorption costing and the revised Year 4 income statement prepared on the basis of variable costing.

(Required) What is the present value of the payment stream discounted at 5% annually: $1000 at the end of year 1, -$2000 at the end of year 2, and $3000 at the end of year 3? Also calculate future value of the cash flows at the end of year 3. Financial calculator not allowed for this question. Show all work!