Questions
THE COFFEE CLUB celebrates almost three decades of really good food, great service and excellent coffee....

THE COFFEE CLUB celebrates almost three decades of really good food, great service and excellent coffee. It manages 400 stores throughout 9 countries, with upwards of 40 million dedicated customers. THE COFFEE CLUB has identified Westfield Parramatta and Sunshine Marketplace as two possible locations for a new Wimpy franchise given the considerable growth in the local economy. The cost of the feasibility study amounted to $30 000. Assume that you are the capital budgeting manager of THE COFFEE CLUB and have been assigned to this project. Consider the following information and calculate the relevant cash flows for the two mutually exclusive locations. The coffeehouses will have the same serving capacity, i.e. they are the same size.

  • The cost of kitchen and restaurant equipment will amount to $600 000.
  • Installation cost will amount to $25 000.
  • The change in net working capital is $90 000.
  • Although THE COFFEE CLUB operates as a franchise, they still consider operating cash flows

before setting up a new franchise to ensure the maximum profitability.

  • Annual sales in Westfield Parramatta is expected to be $1.4 million and $900 000 in Sunshine

Marketplace.

  • THE COFFEE CLUB franchisee will rent suitable premises to house the coffeeshop. In Westfield

Parramatta the annual rent will amount to $200 000 whereas the annual rent in Sunshine

Marketplace will be slightly less, namely $170 000.

  • Operating expenses (excluding depreciation) will amount to $600 000 p.a. for Westfield Parramatta

and $450 000 p.a. for Sunshine Marketplace.

  • Fixed (non-current) assets are expected to have a life span of 5 years and will be depreciated on a straight-line basis.
  • Profits are taxed at the normal company tax rate of 28%.
  • Assets will be sold after 5 years. Given the fact that sales in Westfield Parramatta are expected to

be higher (and thus assets are exposed to more wear and tear). THE COFFEE CLUB expects to get less for Westfield Parramatta’s assets than those of Sunshine Marketplace. It is thus expected that Westfield Parramatta’s assets could be sold after 5 years for $18 000 whereas Sunshine Marketplace’s could be sold for $20 000.

Therefore, you are required to:

  1. (a) Calculate the Initial Investment Outlay (IIO) of the new franchises. Note: it will be the same for Westfield Parramatta and Sunshine Marketplace. Clearly show your calculations. (4)
  2. (b) Calculate the Operating Cash Flows (OCFs) for both locations for the first year. Clearly show all calculations. (6)
  3. (c) Calculate the terminal Cash Flow (TCF) in the last year for both locations. Clearly show your calculations. Assume that the capital gain tax applies at a rate of 25%. (7)
  4. (d) What is the optimal location for the new THE COFFEE CLUB franchise? The required rate of return is 15%. Motivate your answer using the NPV and IRR technique. (11)

In: Accounting

​Beryl's Iced Tea currently rents a bottling machine for $ 52 comma 000 per​ year, including...

​Beryl's Iced Tea currently rents a bottling machine for $ 52 comma 000 per​ year, including all maintenance expenses. It is considering purchasing a machine instead and is comparing two​ options: a. Purchase the machine it is currently renting for $ 165 comma 000. This machine will require $ 21 comma 000 per year in ongoing maintenance expenses. b. Purchase a​ new, more advanced machine for $ 265 comma 000. This machine will require $ 18 comma 000 per year in ongoing maintenance expenses and will lower bottling costs by $ 13 comma 000 per year.​ Also, $ 37 comma 000 will be spent up front to train the new operators of the machine. Suppose the appropriate discount rate is 7 % per year and the machine is purchased today. Maintenance and bottling costs are paid at the end of each​ year, as is the cost of the rental machine. Assume also that the machines will be depreciated via the​ straight-line method over seven years and that they have a​ 10-year life with a negligible salvage value. The marginal corporate tax rate is 40 %. Should​ Beryl's Iced Tea continue to​ rent, purchase its current​ machine, or purchase the advanced​ machine? To make this​ decision, calculate the NPV of the FCF associated with each alternative.

In: Finance

The defining features of oppression are that it is: pervasive, restrictive, hierarchical, complex across relationships, and...

The defining features of oppression are that it is: pervasive, restrictive, hierarchical, complex across relationships, and internalized. a) Define these terms, and discuss how we have been socialized to accept systems of oppression as normal. b) Share an example of a system, organization, group, etc. that is oppressive in your opinion. This can be one in which you have worked, one you have experienced as a customer, or which you have otherwise experienced or observed. If you don't have an example that you can personally reflect upon, you may choose one that you know of from past research or from current events.

In: Operations Management

Kim Inc. must install a new air conditioning unit in its main plant. Kim must install...

Kim Inc. must install a new air conditioning unit in its main plant. Kim must install one or the other of the units; otherwise, the highly profitable plant would have to shut down. Two units are available, HCC and LCC (for high and low capital costs, respectively). HCC has a high capital cost but relatively low operating costs, while LCC has a low capital cost but higher operating costs because it uses more electricity. The costs of the units are shown here. Kim's WACC is 6%.

0 1 2 3 4 5
HCC -$610,000 -$45,000 -$45,000 -$45,000 -$45,000 -$45,000
LCC -$90,000 -$170,000 -$170,000 -$170,000 -$170,000 -$170,000
  1. Which unit would you recommend?
    1. Since we are examining costs, the unit chosen would be the one that had the lower NPV of costs. Since LCC's NPV of costs is lower than HCC's, LCC would be chosen.
    2. Since we are examining costs, the unit chosen would be the one that had the lower NPV of costs. Since HCC's NPV of costs is lower than LCC's, HCC would be chosen.
    3. Since all of the cash flows are negative, the IRR's will be negative and we do not accept any project that has a negative IRR.
    4. Since all of the cash flows are negative, the NPV's cannot be calculated and an alternative method must be employed.
    5. Since all of the cash flows are negative, the NPV's will be negative and we do not accept any project that has a negative NPV.
    ?
  2. If Kim's controller wanted to know the IRRs of the two projects, what would you tell him?
    1. The IRR cannot be calculated because the cash flows are all one sign. A change of sign would be needed in order to calculate the IRR.
    2. The IRR cannot be calculated because the cash flows are in the form of an annuity.
    3. The IRR of each project will be positive at a lower WACC.
    4. There are multiple IRR's for each project.
    5. The IRR of each project is negative and therefore not useful for decision-making.

    ?
  3. If the WACC rose to 12% would this affect your recommendation?
    1. When the WACC increases to 12%, the IRR for LCC is greater than the IRR for HCC, LCC would be chosen.
    2. When the WACC increases to 12%, the IRR for HCC is greater than the IRR for LCC, HCC would be chosen.
    3. Since all of the cash flows are negative, the NPV's will be negative and we do not accept any project that has a negative NPV.
    4. When the WACC increases to 12%, the NPV of costs are now lower for LCC than HCC.
    5. When the WACC increases to 12%, the NPV of costs are now lower for HCC than LCC.

    ?

    Explain your answer and the reason this result occurred.
    1. The reason is that when you discount at a higher rate you are making negative CFs higher thus improving the IRR.
    2. The reason is that when you discount at a higher rate you are making negative CFs higher thus improving the NPV.
    3. The reason is that when you discount at a higher rate you are making negative CFs higher and this lowers the NPV.
    4. The reason is that when you discount at a higher rate you are making negative CFs smaller and this lowers the NPV.
    5. The reason is that when you discount at a higher rate you are making negative CFs smaller thus improving the NPV.

    ?

In: Finance

 ​Fingen's 19​-year, ​$1000 par value bonds pay 15 percent interest annually. The market price of the...

 ​Fingen's 19​-year, ​$1000 par value bonds pay 15 percent interest annually. The market price of the bonds is ​$1110 and the​ market's required yield to maturity on a​ comparable-risk bond is 12 percent.

a.)Compute the​ bond's yield to maturity.

b.)Determine the value of the bond to​ you, given your required rate of return.

c.)Should you purchase the​ bond?

In: Finance

Have you ever been through a change initiative (large or small) at your place of work?...

Have you ever been through a change initiative (large or small) at your place of work? Please describe briefly how the process went. Do you think it could have been done differently, and if so, what would you have done? Offer suggestions to your classmates for ways that you might have approached their changes. If you do not work, you may use a change you experienced in another environment.

In: Operations Management

C language <stdio.h> (Decisions only) (else if and Switch statements) A bank wants an application to...

C language <stdio.h> (Decisions only) (else if and Switch statements)

A bank wants an application to help in the loan approval process and has asked us to create it for them. Write a program to ask the user for the loan amount, the annual interest rate (as a percentage, not as a decimal), the length of the loan (in years), and the gross monthly income of the applicant. Validate the inputs per below, and if invalid, inform the user and end the program:

 Loan amount must be greater than $0.00

 Annual interest rate must be greater than 1.0% and less than 20.0%

 Loan duration must be between 1 year and 30 years

 Monthly income must be greater than $0.00

After all the inputs have been validated, calculate and display the monthly loan payment and the total interest for the loan based on the following formulas:

payment = p * r / (1 – (1 + r)-n )

total interest = n * payment – p

where:

 p = the loan amount

 r = monthly interest rate (annual rate / 12)

 n = loan duration (in months)

Finally, determine if the applicant qualifies for the loan.

 If the loan payment is less than or equal to 20.0% of the monthly income, they definitely qualify

 If the loan payment is greater than 20.0% and less than or equal to 25.0% of the monthly income, it will be tight, but they qualify

 If the loan payment is greater than 25.0% and less than or equal to 30.0% of the monthly income, they qualify (but the loan probably shouldn’t be approved)

 If the loan payment is more than 30.0% of the monthly income, they do not qualify

Create constants for any numbers used that do not change (0, 1, 12, 20, 30, & 100) and the loan qualification levels (20.0%, 25.0%, & 30.0%), and use the constants in the validation conditions and error messages, in conversions from percentages to decimal (and vice versa) and conversions from years to months.

Display all dollar amounts with a dollar sign and 2 decimal places, and all percentages to 1 decimal place followed by a percent sign.

Example Run #1: (bold type is what is entered by the user)

Enter the amount of the loan: $100000.00

Enter the annual interest rate (8.0 = 8.0%): 4.0

Enter the length of the loan (in years): 30

Enter your monthly gross income: $3000.00

The monthly payment is: $xxx.xx (~$480.00)

The total interest is: $xxxxx.xx (~$71,870.00)

The monthly payment is less than or equal to 20.0% of your gross monthly income.

You are definitely approved for the loan!

Example Run #2:

Enter the amount of the loan: $200000.00

Enter the annual interest rate (8.0 = 8.0%): 4.0

Enter the length of the loan (in years): 30

Enter your monthly gross income: $3000.00

The monthly payment is: $xxx.xx

The total interest is: $xxxxxx.xx

The monthly payment must be less or equal to 30.0% of your gross monthly income.

I’m sorry – You do not qualify for the loan.

Example Run #3:

Enter the amount of the loan: $-50000

The mortgage amount must be greater than $0.00.

The example runs show EXACTLY how your program input and output will look.

In: Computer Science

Scenario: Imagine you are in a strange country where people talk to you, but you do...

Scenario:

Imagine you are in a strange country where people talk to you, but you do not understand what they are saying. They use strange tools to eat, and you cannot figure out how to use them. They try to feed you food you do not recognize. Sometimes these people seem friendly and caring, but at other times they become angry because you are not doing what they ask you to do. When they try to remove your clothes and take you into a room to shower you, you become frightened and upset, and you do not know what will happen next. At times, other strangers come to your room and bring gifts. They talk kindly to you, but you do not know them. They seem upset when you do not respond to their gifts and gestures. The doors and windows in this country are all locked, and you cannot find a way out so that you can go home.

a. How would you react if you were the person in this situation? Why?

b. What methods might you use to try to communicate with the person in this situation?

c. Why would the person want to go home? What does “home” mean to him or her?

d. How will this exercise help you when you care for a confused person?

In: Nursing

[The following information applies to the questions displayed below.] Juliette formed a new business to sell...

[The following information applies to the questions displayed below.]

Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1. Determine the amount of start-up costs Juliette can immediately expense (not including the portion of the expenditures that are amortized over 180 months) this year in the following alternative scenarios: (Leave no answer blank. Enter zero if applicable.)

Problem 10-72 Part a

a. She incurred start-up costs of $2,000.

b. She incurred start-up costs of $45,000.

c. She incurred start-up costs of $53,500.

d. She incurred start-up costs of $63,000.

e. How would you answer parts (a) through (d) if she formed a partnership or a corporation and she incurred the same amount of organizational expenditures rather than start-up costs (how much of the organizational expenditures would be immediately deductible)?

In: Accounting

C++ Write a program to create a linked list which stores the details of employees(Employee number,...

C++

  • Write a program to create a linked list which stores the details of employees(Employee number, employee name, rate, hours worked). Create a menu to manage the emoployee data.

MENU

1. ADD EMPLOYEE DETAILS

2. DELETE EMPLOYEE

3. SEARCH EMPLOYEE

4. PRINT EMPLOYEE PAYROLL

5. EXIT

  • When the user selected option #4 the program should print the following pay report for each employee:

EmpNo.     Name      Rate    Hours    Regular Pay      Overtime Pay     Gross Pay

  • Any hours worked above 40 hours are paid at time and a half. Additionally, the program should display the totals of regular, overtime and gross pay columns.

In: Computer Science

when you need the components of the question above to grow a certain bacteria, and the...

when you need the components of the question above to grow a certain bacteria, and the bacteria grow in closed tubed in a closed dark, non-shaking incubator that is set at 54C, which definition correctly applies to these bacteria:

a. photo-heterotroph

b. halophile autotroph

c. heterotrophic thermophile

d. aerobic psychrophile

e. alkaliphilic acidophile

  1. Heterotroph – Yes, the bacteria need glucose but the overall answer is NO because of the fact that there is no light
  2. Autotroph: NO, because it needs glucose, so the overall answer is NO

The answer say like this, but I can't understand about glucose. It is because of the non-shaking incubator?

In: Biology

Our weight on different planets in the solar system will differ due to the varying size...

Our weight on different planets in the solar system will differ due to the varying size and mass of each of the planets. Write a C program, weight.c, to compute the weight of a 200 pound person on the following planets, based on the data below:
 
 
Planet  Percent of Earth Weigh ------  ------------------------ Mercury               37.8% Venus       90.7% Mars        37.7% Jupiter                   236.0% Saturn      91.6% Uranus      88.9% Neptune     112.0%
 
 
 
The program should generate the following outputs:
 
 
Mercury: xxx.x   Venus: xxx.x    Mars: xxx.x Jupiter: xxx.x  Saturn: xxx.x  Uranus: xxx.x Neptune: xxx.x
 
 
 
Your program should right-justify the planet names and present the output to one decimal place as shown above. Be sure to line up the decimal points. Use the following guidelines to develop your program:
 
 
Declare your variables with appropriate data types.
 Assign values to your variables.
 Perform your calculations.
 Generate appropriate output.
 
 
Points to Remember:  
Make sure you are creating a C program and not a C++ program. The .c suffix to your source code will invoke the C compiler while the .cpp suffix will invoke the C++ compile

In: Computer Science

/* Complete this javascript file according to the individual instructions given in the comments. */ //...

/* 
Complete this javascript file according to the individual instructions
given in the comments. */

// 1) Declare an array named myArray
// Assign myArray three elements: 'Tuesday',3,true
// Print myArray to the console with console.log()


// 2) Use typeof on each element in myArray
// Example: typeof myArray[0];
// Print all 3 lines to the console with console.log()



// 3) Declare a variable named myStart and set it to
// the value of the length property applied of myArray
// Print the result to the console with console.log()



// 4) Use the .splice() method on myArray
// Use your variable myStart - 2 as the first parameter of .splice()
// Use 0 as the second parameter
// In the third parameter, specify 'hamburgers' as the element to add
// Print the resulting array to the console with console.log()



// 5) Declare an array named myPal
// Give myPal these 4 elements: 'taco','cat','race','car'
// Set a string equal the first element + the second element
// Print the string to the console with console.log()



// 6) Use the .concat() method to merge myArray and myPal
// Print the result to the console with console.log()



// 7) Use the .join() method on myPal and specify no connector parameter
// Print the result to the console with console.log()


// 8) Use .sort() on myArray
// Print the resulting array to the console with console.log()


// 9) Use .slice() on myPal and specify that it begins at
// myPal.length - 2
// Print the result to the console



// 10) **Solving a problem!
// Declare a string named revOrder that is equal to 'Taco cat'
// Utilize indexOf(), split(), splice(), reverse(), and join() to
// 1) turn the string into an array
// 2) locate and remove the empty space
// 3) Reverse the order of the array
// 4) Turn the array back into a string
// 5) Log each step to the console.
// Can you combine any of the steps into one statement?
// You should finish with a result of "tacocaT"

In: Computer Science

One of the major component of the performance management system is the appraisal process. talk about...

One of the major component of the performance management system is the appraisal process.

talk about it.

In: Operations Management

Compare and contrast the strengths and weaknesses of the National Crime Victims Survey with those of...

Compare and contrast the strengths and weaknesses of the National Crime Victims Survey with those of the Uniform Crime Reports. Be specific

In: Psychology