Questions
V & T Faces, Inc., would like to open a retail store in Miami. The initial...

V & T Faces, Inc., would like to open a retail store in Miami. The initial investment to purchase the building is $420,000, and an additional $50,000 in working capital is required. Since this store will be operating for many years, the working capital will not be returned in the near future.

V & T Faces expects to remodel the store at the end of 3 years at a cost of $100,000. Annual net cash receipts from daily operations (cash receipts minus cash payments) are expected to be as follows:

Year 1 $80,000
Year 2 $115,000
Year 3 $118,000
Year 4 $140,000
Year 5 $155,000
Year 6 $167,000
Year 7 $175,000

The company’s required rate of return is 13 percent. Assume management decided to limit the analysis to 7 years.

  1. What is the weakness of using the payback period method to evaluate long-term investments?
  2. Assume the manager of the company wanted to live in Miami and intentionally inflated the projected annual cash receipts so that the proposal would be accepted. The proposal would otherwise have been rejected. Explain how the company’s use of a post audit would help to prevent this type of unethical behavior.

In: Accounting

V & T Faces, Inc., would like to open a retail store in Miami. The initial...

V & T Faces, Inc., would like to open a retail store in Miami. The initial investment to purchase the building is $420,000, and an additional $50,000 in working capital is required. Since this store will be operating for many years, the working capital will not be returned in the near future. V & T Faces expects to remodel the store at the end of 3 years at a cost of $100,000. Annual net cash receipts from daily operations (cash receipts minus cash payments) are expected to be as follows:

Year 1 $80,000

Year 2 $115,000

Year 3 $118,000

Year 4 $140,000

Year 5 $155,000

Year 6 $167,000

Year 7 $175,000

The company’s required rate of return is 13 percent.

Assume management decided to limit the analysis to 7 years.

Questions:

1) What is the weakness of using the payback period method to evaluate long-term investments?

2)Assume the manager of the company wanted to live in Miami and intentionally inflated the projected annual cash receipts so that the proposal would be accepted. The proposal would otherwise have been rejected. Explain how the company’s use of a post audit would help to prevent this type of unethical behavior.

In: Accounting

• An electron, at rest, is accelerated through region 1, which has a 5000 V potential...

• An electron, at rest, is accelerated through region 1, which has a 5000 V potential difference. It then enters region 2 where there is only a uniform magnetic field and it undergoes uniform circular motion (in a plane) of radius 0.954 mm. After subtending half a circle, the electron exits region 2, traveling in the opposite direction it was before entering region 2. (a) Draw a physical representation of this situation, complete with the direction of the electric and magnetic fields in the two regions. (b) Is the initial point of the electron in region 1 necessarily at zero electric potential? (c) Is the electric field from the potential difference in region 1 necessarily uniform? (d) What is the orientation of the magnetic field in region 2, relative to the plane of motion? (e) What is the speed of the electron when it exits region 2? (f) What is the strength of the magnetic field in region 2?

In: Physics

v The City Commission of Nashville has decided to build a botanical garden and picnic area...

v

The City Commission of Nashville has decided to build a botanical garden and picnic area in the heart of the city for the recreation of its citizens. The precedence table for all the activities required to construct this area successfully is as​ follows:

                                                                               

Code

Description

Time

​(hrs)

Immediate​ Predecessor(s)

A

Find​ location; determine resource requirements

20

None

B

Requisition of lumber and sand

60

A

C

Dig and grade

100

A

D

Saw lumber into appropriate sizes

30

B

E

Position lumber in correct locations

20

​D, C

F

Nail lumber together

10

E

G

Put sand in and under the equipment

20

F

H

Put dirt around the equipment

10

F

I

Put grass all over the​ garden, landscape, paint

30

​G, H

Refer to the legend

LOADING...

for the activity that corresponds to each code.

Using the line drawing​ tool, draw a Gantt chart for activites E through I of the project.

020406080100120140160180200IHGFEDCBA

In: Accounting

Read the summary of the case Mitchell v. Fortis Insurance Company on page 291 of your...

Read the summary of the case Mitchell v. Fortis Insurance Company on page 291 of your textbook. In a 500+ word paper, explain why this is a breach of contract case. What kind of contract is this and who is the breaching party? What kinds of damages are normally awarded for breach of contract? Are punitive damages normally awarded in a case of this type? Why did the court award punitive damages in this case? Do you agree with this decision? Did the insurance company behave ethically in this situation? Would you have suggested that they do anything differently? Why or why not?

In: Economics

The role of the play-within-a-play in Act V of A Midsummer Night’s Dream is often debated....

The role of the play-within-a-play in Act V of A Midsummer Night’s Dream is often debated. What effect does the craftsmen’s production of their play have on the tone of A Midsummer Night’s Dream as a whole? Does the Pyramus and Thisbe story have any significance to the central story, or is it simply a comical break?

In: Psychology

A 900 MW power station transmits power at a potential difference of 60, 000 V a)...

A 900 MW power station transmits power at a potential difference of 60, 000 V

a) Find the current.

b) Write down the equation for the resistance in terms of the resistivity.

c) If the power loss is 110 MW, over the length of the 200 km power line, find the resistivity of the line, if its cross section is 9 cm 2.

d) Write down the equation for the magnetic field due to a long conductor.

e) Find the strength of the magnetic field for the current in part a, 20 m from the line.

f) You take a length of the line and wind it tightly, to form a solenoid of length L= 0.6 m. How many turns are in the solenoid?

g) What is the field inside the solenoid?

In: Physics

Consider a galvanic cell based on the following half reactions: E° (V) Al3+ + 3e- →...

Consider a galvanic cell based on the following half reactions:

E° (V)

Al3+ + 3e- → Al

-1.66

Ni2+ + 2e- → Ni

-0.23

If this cell is set up at 25°C with [Ni2+] = 1.00 × 10-3M and [Al3+] = 2.00 × 10-2M, the expected cell potential is what?

In: Chemistry

Using the relationship for internal pressure πT = T (∂P/∂T)V – P, show that for a...

Using the relationship for internal pressure πT = T (∂P/∂T)V – P, show that for a gas that obeys a truncated virial equation of state: Z = PVm/RT = 1 + B(T)/Vm, the internal pressure may be approximated as πT ≈ RT2(Vm)-2∙(ΔB/ΔT). Estimate the internal pressure at 1.0 bar and also at 10.0 bar for a hypothetical real gas at 275K given

that B(T) = -28.0 cm3⋅mol-1 at 250K and -15.6 cm3⋅mol-1 at 300K for this gas.

In: Chemistry

An atomic nucleus of mass m traveling with speed v collides elastically with a target particle...

An atomic nucleus of mass m traveling with speed v collides elastically with a target particle of mass 2m (initially at rest) and is scattered at 90°. (a) At what angle does the target particle move after the collision? (b) What are the final speeds of the two particles? (c) What fraction of the initial kinetic energy is transferred to the target particle?

In: Physics