Questions
You are considering a new product launch. The project will cost $810,000, have a 4-year life,...

You are considering a new product launch. The project will cost $810,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 200 units per year; price per unit will be $16,375, variable cost per unit will be $11,250, and fixed costs will be $550,000 per year. The required return on the project is 11 percent and the relevant tax rate is 23 percent. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within ±10 percent. a. What are the best-case and worst-case NPVs with these projections? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the base-case NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the sensitivity of your base-case NPV to changes in fixed costs? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

In: Finance

Write a function intLog of type Integer -> Integer that returns the exponent of the largest...

Write a function intLog of type Integer -> Integer that returns the exponent of the largest power of 2 less than its integer argument.

This needs to be a haskell function

In: Computer Science

This is all one question with several parts for my accounting homework. I've tried but I...

This is all one question with several parts for my accounting homework. I've tried but I keep getting the wrong answer please help.

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if your formulas are correct, you should get the correct answers to the following questions.

(a) What is the net operating income (loss) in Year 1 under absorption costing?

(b) What is the net operating income (loss) in Year 2 under absorption costing?

(c) What is the net operating income (loss) in Year 1 under variable costing?

(d) What is the net operating income (loss) in Year 2 under variable costing?

(e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because:

  • Units were left over from the previous year.
  • The cost of goods sold is always less under variable costing than under absorption costing.
  • Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventories under absorption costing.
3.

Make a note of the absorption costing net operating income (loss) in Year 2.

At the end of Year 1, the company’s board of directors set a target for Year 2 of net operating income of $40,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 3,800 units.

(a) Would this change result in a bonus being paid to the CEO?
  • Yes

  • No

(b) What is the net operating income (loss) in Year 2 under absorption costing

(c) Would this doubling of production in Year 2 be in the best interests of the company if sales are expected to continue to be 2,100 units per year?

  • Yes

  • No

Chapter 6: Applying Excel
Data
Selling price per unit $324
Manufacturing costs:
Variable per unit produced:
Direct materials $155
Direct labor $71
Variable manufacturing overhead $21
Fixed manufacturing overhead per year $95,000
Selling and administrative expenses:
Variable per unit sold $9
Fixed per year $48,000
Year 1 Year 2
Units in beginning inventory 0
Units produced during the year 2,500 1,900

Units during the year

2,100 2,100

In: Accounting

A firm has established a distribution network for the supply of a raw material critical to...

A firm has established a distribution network for the supply of a raw material critical to its manufacturing. Currently there are two origins for this material, which must be shipped to three manufacturing plants. The current network has the following characteristics:



Costs

plant 1

plant 2

plant 3

supply

raw material source 1

$6

$8

$9

400

raw material source 2

$4

$7

$3

600

demand

500

500

500

supply < demand






The firm has identified two potential sites for a third raw material source; these are identified as Candidate A and Candidate B. From A, the costs to ship would be $9 to Plant 1, $10 to Plant 2, and $12 to Plant 3. From B, these costs would be $11, $14, and $8. The new source, wherever it is located, will have a capacity of 500 units. Solve with the transportation method. Which site should be selected?

site should be selected?

In: Operations Management

Give an example of how patterns of development psychology insight into a mature form.

Give an example of how patterns of development psychology insight into a mature form.

In: Psychology

Your firm is considering a project to produce new whatchamacallits. The project will require new equipment...

Your firm is considering a project to produce new whatchamacallits. The project will require new equipment at a cost of $150,000. Shipping and installation will be $25,000 and initial training required before the project starts will cost $20,000. The equipment will be depreciated on a straight- line basis to a book value of $15,000 over the project’s three year life. At the end of the project, the equipment will be sold for $10,000.

Initially, the project requires an increase in inventory of $5,000, an increase in Accounts Payable of $3,000, and an increase in Accounts Receivable of $8,000. Changes in working capital will be recouped at the end of the project.

The whatchamacallits will be sold for $10 each. The project would require variable costs of 20% of sales, annual fixed costs of $21,000, and annual recertification training at a cost of $5,000.

The tax rate is 35% and the cost of capital is 12%. Assuming that the operating cash flows will be constant over the project’s life, calculate the financial break-even level of annual sales.

In: Accounting

Question 2 (b) USB flash drive, CD-ROM and Hard disk are commonly used to store data...

Question 2

(b) USB flash drive, CD-ROM and Hard disk are commonly used to store data such as documentation, movies and songs.

Based on the statement given above, answer the following questions:

  1. Compare TWO (2) similarities and TWO (2) differences in between USB flash drive, CD-ROM and Hard disk.
  1. Based on your answer in (i), which storage device is recommended? Provide your own justifications.

[12 marks]

In: Computer Science

Find the future values of the following ordinary annuities: a. FV of $200 paid each 6...

Find the future values of the following ordinary annuities:
a. FV of $200 paid each 6 months for 5 years at a notminal rate of 8% compounded semiannual.
b. FV of $100 paid each 3 months for 5 years at a nominal rate of 8%, compounded quarterly.
c. The annuities described in parts a and b have the same amount of money paid into them during the 5 year period, and both earn interest at the same nominal rate, yet the annuity in part b earns more than the one in part a over the 5 years. Why does this occur?

In: Finance

A. Tonka sells a tractor to Michael who is 16 years old. Michael paid $3000 for...

A. Tonka sells a tractor to Michael who is 16 years old. Michael paid $3000 for the tractor. The next day while mowing a person's lawn Michael flips over the tractor doing extensive damage. It turns out Michael was drunk at the time. The next day he returns the tractor to Tonka demanding the return of his money. Tonka determines that the tractor has sustained $2000 in damages and tells Michael they are deducting that the money that Michael has paid. Is Michael entitled to receive back all of the money he has paid and be released from the contract? Explain.

B. When Michael arrived home from Tonka he saw his neighbor had a problem with the tree that fell on the neighbor's house Michael spent eight hours helping the neighbor cut and remove the tree. The neighbor was so grateful that after they finished the neighbor offered to pay Michael $500 for his help. Michael told the neighbor he appreciated the offer and could use the money. If the neighbor refuses to pay can Michael enforce the promise? Why or why not?

In: Operations Management

Comment on the merits of unbiased multicultural observation both in clinical and in research contexts. How...

Comment on the merits of unbiased multicultural observation both in clinical and in research contexts. How does systematic and institutionalized bias impact multicultural observation?

In: Psychology

Compare a site which has users use their “real names” with one which allows “fake names”...

Compare a site which has users use their “real names” with one which allows “fake names” What is their tone and language like? Are discussions supportive or argumentative? What kind of posts receive the most replies? Do you trust information equally for both?

In: Psychology

Hello everyone, I need to Research a Cloud Computing Service Level Agreement to describe what it...

Hello everyone, I need to Research a Cloud Computing Service Level Agreement to describe what it entails. Please point me to one that includes any of these components:

Availability and performance requirements

Service monitoring and reporting

Remediation and liability (or lack thereof) for service disruption

Dispute resolution procedures a

A mechanism for reviewing and updating the SLA, including a change control process

In: Computer Science

Is there ever a time when a business decision is legal, but unethical? Please explain your...

Is there ever a time when a business decision is legal, but unethical? Please explain your response providing an example if possible.

In: Operations Management

opinion, which is more critical to a healthcare facility’s financial success, proper analysis of the balance...

opinion, which is more critical to a healthcare facility’s financial success, proper analysis of the balance sheet, or proper analysis of the income statement? Explain your answer in detail.

In: Finance

Find the amount to which $800 will grow under each of the following conditions. a. 3%...

Find the amount to which $800 will grow under each of the following conditions.
a. 3% compounded annually for 5 years.
b. 3% compounded semiannually for 5 years.
c. 3% compounded quarterly for 5 years.
d. 3% compounded monthly for 5 years.

In: Finance