In: Operations Management
Refer to Table 10-1, which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 11 percent to 8 percent.
a. What is the bond price at 11 percent?
b. What is the bond price at 8 percent?
c. What would be your percentage return on investment if you bought when rates were 11 percent and sold when rates were 8 percent? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
In: Finance
M.V.P. Games, Inc., has hired you to perform a feasibility study of a new video game that requires an initial investment of $6.3 million. The company expects a total annual operating cash flow of $1.2 million for the next 8 years. The relevant discount rate is 9 percent. Cash flows occur at year-end.
a. What is the NPV of the new video game? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)
b. After one year, the estimate of remaining annual cash flows will be revised either upward to $2.1 million or downward to $275,000. Each revision has an equal probability of occurring. At that time, the video game project can be sold for $2.5 million. What is the revised NPV given that the firm can abandon the project after one year? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)
a. NPV = $341,868
b. NPV = __?
In: Finance
Discuss why it is desirable for a country to have a large GDP.
In: Economics
Some people might consider Virgin's policy to be a sign of laissez faire leadership. Do you are? Why or why not?
In: Finance
(Cash receipts acceleration system) Peggy Pierce Designs Inc. is a vertically integrated, national manufacturer and retailer of women's clothing. Currently, the firm has no coordinated cash management system. A proposal, however, from the First Pennsylvania Bank aimed at speeding up cash collections is being examined by several of Pierce's corporate executives. The firm currently uses a centralized billing procedure, which requires that all checks be mailed to the Philadelphia head office for processing and eventual deposit. Under this arrangement, all the customers' remittance checks take an average of 4 business days to reach the head office. Once in Philadelphia, another 1 days are required to process the checks for ultimate deposit at the First Pennsylvania Bank. The firm's daily remittances average $2.0 million. The average check size is $2,500. Pierce Designs currently earns 11 percent annually on its marketable-securities portfolio. Under the proposed plan, First Pennsylvania said that they could reduce funds tied up by mail float to 2 days, and processing float will be eliminated. Funds would then be transferred twice each business day by means of automated depository transfer checks from local banks to the First Pennsylvania Bank. Each DTC costs $18. These transfers will occur all 270 business days of the year. Each check processed through the proposed cash collection system will cost $0.17.
a. What amount of cash balances will be freed up if Peggy Pierce Designs Inc. adopts the system suggested by First Pennsylvania?
b. What is the opportunity cost of maintaining the current banking setup?
c. What is the projected annual cost of operating the proposed system?
d. Should Pierce adopt the new system? Compute the net annual gain or loss associated with adopting the system.
In: Finance
You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $130,000, and it would cost another $32,500 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $52,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require an $13,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $76,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 35%. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow? Enter your answer as a positive value. Round your answer to the nearest cent. $ What are the project's annual cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest cent. Year 1: $ Year 2: $ Year 3: $ If the WACC is 11%, should the spectrometer be purchased?
In: Finance
In the context of the dual attitude system, identify the type of attitude that represent the consciously controlled attitudes regarding someone or something.
In: Psychology
Analyze the major developments [hint: four] between 1848 and 1861 that contributed to the Civil War. Can one argue that one was the most significant? Explain.
In: Psychology
Database Design
A database is an electronic filing system: a collection of data organized for use and retrieval. Database design is the process of creating a model of the database. The model can include several attributes and entities, such as users, logic, physical storage locations, relationships, and other parameters.
Write a post in which you explain at least three ways that database design and data architecture can work together to improve patient satisfaction, lower care costs, or improve patient outcomes. Then identify at least two areas of uncertainty or unanswered questions that you have about database design and data architecture.
In: Computer Science
Complexity of Integration
Data integration appears simple in theory but in fact it can be a very complex process, particularly in organizations where sensitive or personal information is used, such as health care. Based on this information, why is data integration important in a data management process? How critical is it to have a comprehensive integration plan, particularly in today’s world of health care? Provide examples to support your thoughts.
In: Computer Science
Explain Adaptability versus Flexibility in the Supply Chain.
When it comes to Service Recovery, what are the key aspects an organization must address?
In: Operations Management
Big Data
Front-end processes refer to patient registration and data collection procedures that take place at the beginning of a patient care visit, generating master patient data. Correcting identity errors later in the data collection process has high technology, labor, and financial costs. What front-end policies should an organization implement to ensure the accuracy of master patient data? How should it implement and monitor the policies? What role should data governance play in front-end processes?
In: Computer Science
Please answer the following question -
1. Your boss asks you to lie on their expense report as they did not the big tax refund that they desired. They pretended they took their client to dinner when they actually took their significant other. What would you do?
a. Your boss wants to encourage an employee to quit so they do not need to pay them a severance. You know for a fact they are docking their hours illegally. What would you do?
b. You know that you are paid $3,00 less than the intern that is hired to work underneath you. What would you do?
In: Operations Management
Business Ethics: Shaw & Barry 2013
Please choose two of these theories such as Libertarianism, Utilitarianism, Kant's Theory, Rawl's Theory, and Nonconsequentialist Theories , Ethical Egoism, for each question to support your answer:
1.Is it ethical to do business with suppliers who do not have health and safety regulations?
2. Is it ethical for employers to require employees to participate in organizations apart from the business (ie. community non-profit organizations) and does the type or nature of the organization make a difference?
3. Some believe that employee pay should be tied in part to compensation of the owner or executive officer of the business, with the lowest paid employee being paid no less than a certain percentage of the highest paid employee. Is this an ethical way of determining compensation?
In: Operations Management