Dog Up! Franks is looking at a new sausage system with an installed cost of $509085. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $75109. The sausage system will save the firm $205155 per year in pretax operating costs, and the system requires an initial investment in net working capital of $32364. If the tax rate is 31 percent and the discount rate is 9 percent, what is the NPV of this project? (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

Use the following information to determine the changes in the following: cost of service failures (including invoice discount, rehandling cost, lost sales), net income, and Return on Assets.

Order fill increases from 92% to 98% with an average inventory increase of 25% and a 20

% increase in both warehousing and transportation costs.

Average price per order                                     $250

Gross margin per order                                      $87

Annual orders                                                   250,000

Of orders not filled correctly, 80% may be rectified with an invoice discount of $100 and additional handling per rectified order of $35

Cash                                                                 $5,000,000

Accounts receivable                                          $3,490,000

Fixed assets                                                      $120,000,000

Warehousing cost                                              $1,000,000

Other operating costs                                         $1,200,000

Tax rate                                                            20% of (EBIT-interest)

Transportation cost                                           $800,000

Average inventory                                            $2,000,000

Interest cost                                                      $400,000

Inventory carrying cost                                      10% per year

ABC Company is considering a move to outsource is warehousing operations. Current financial information is shown below.

Sales                                                               $500,000

Transportation cost                                          $15,000

Warehousing cost                                            $10,000

Inventory carrying cost                                    18%

Cost of goods sold                                           $325,000

Other operating costs                                       $95,000

Average inventory                                           $50,000

Accounts receivable                                         $30,000

Cash                                                               $15,000

Net fixed assets                                               $850,000

Interest                                                           $10,000

Taxes                                                              20% of (EBIT – Interest)

As a result of outsourcing warehousing the following changes will occur.

Net fixed assets reduced                                   15%

Inventory reduced                                            15%

Warehousing costs                                           $0

Outsourcing provider costs                               $20,000

            Determine the effect on ROA if warehousing is outsourced.

Pfeitzer is a monopolist for a new drug that makes people feel thinner. The total cost function is C(Q) = 200 + 10Q + Q 2(read as Q SQUARED or Q to the power of 2) . The inverse demand function is p(Q) = 82 − Q.

(a) What are the efficiency losses of the monopoly pricing compared to competitive prices?

(b) Pfeitzer argues that other firms should not be allowed to enter the market, since it is a natural monopoly. A potential competitor argues that it is not a natural monopoly. Show why both are right at the same time.

The inverse demand curve for a Stackelberg duopoly is P =1932 - 3Q. The leader's cost structure is
CL(QL) = 13QL. The follower's cost structure is CF(QF) = 25QF.

Find the follower revenue

Round all calculations to 1 decimal

The Taylor Corporation is using a machine that originally cost $66,000. The machine has a book value of $66,000 and a current market value of $40,000. The asset is in the Class 8 CCA pool. It will have no salvage value after 5 years and the company tax rate is 40%.
Jacqueline Elliott, the Chief Financial Officer of Taylor, is considering replacing this machine with a newer model costing $70,000. The new machine will cut operating costs by $10,000 each year for the next five years. Taylor's cost of capital is 8%.

Should the firm replace the asset? (Use NPV methodology to solve this problem.)

Calculate the Present Values of the followings:

1. Total cashflows in year 0:

($30,000)

($70,000)

($40,000)

$30,000

2. Total Annual Savings for the five years:

$23,956

$25,789

$45,378

$11,289

3. PV CCA:

$8,229

$7,963

$9,365

$10,345

How to do question 2 and 3?

First American Incorporated is considering buying a new copier. It will cost $9,000 to purchase and $1,000 to ship and install. It has a five-year class life. At the end of four years they plan to sell the copier for $3,500. The new copier will allow FA to increase revenues by $2,000 each year but expenses will also increase by $500 each year. Account receivables will increase by $500 and account payables will increase by $800 if the copier is purchased. Straight-line depreciation will be used. FA’s marginal tax rate is 34% and its cost of capital is 5%. Complete parts A through E below.

a) The cost basis is
A: ($9,000)
B: ($9,700)
C: ($10,000)
D: ($10,300)

b) The chance in Working Capital in NICO is
A: $300
B:($300)
C: ($1,300)
D: $1,300

c) The Operating Cash Flow in year 2 is
A: ($300)
B: $1,670
C: $1,330
D: $1,500

d) The TCF is
A: $3,330
B: $3,370
C: $3,030
D: $3,200

e) What should First American do about this project?
A: Accept the project because the NPV is positive
B: Accept the project because the NPV is negative
C: Reject the project because the NPV is positive
D: Reject the project because the NPV is negative

Periodic Inventory by Three Methods; Cost of Merchandise Sold

The units of an item available for sale during the year were as follows:

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Exercise 2
The cost of producing one teddy bear is 10 PLN. At the price of 15 PLN per teddy bear the sales volume is 1000 pieces per year. Each time the price is raised by 1 PLN, the sales decrease by 50 pieces.
PROFIT = (FINAL PRICE - PRODUCTION COST) * number of units sold
(a) Determine the formula of the square function describing the annual profit depending on the price x PLN per unit.

b) Set such a price for one teddy bear that the annual profit of the company is the highest. What will be the sales volume and what profit?

Could you explain to me how to solve for the appropriate values in the cost reconciliation table (as seen in number 4)?

I followed the problem in all the other sections, but not for this one:

http://www.chegg.com/homework-help/scribners-corporation-produces-fine-papers-three-production-chapter-4-problem-10e-solution-9780077386214-exc

The first half of the table, labeled "costs to be accounted for" was confusing.

Coca is a monopolist for a new drug that makes people feel thinner. The total cost function is C(Q) = 200 + 10Q + Q 2(read as Q SQUARED or Q to the power of 2) . The inverse demand function is p(Q) = 82 − Q.

(a) What are the efficiency losses of the monopoly pricing compared to competitive prices?

(b) Coca argues that other firms should not be allowed to enter the market, since it is a natural monopoly. A potential competitor argues that it is not a natural monopoly. Show why both are right at the same time.