What is a Monocentric city? What determines land prices in a Monocentric city?
In: Economics
MIRR unequal lives. Singing Fish Fine Foods has $2,080,000 for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the store's deli section for additional food service. The estimated after-tax cash flow of this project is $600,000 per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is $510,000 for the next six years. The appropriate discount rate for the deli expansion is 9.3% and the appropriate discount rate for the wine section is 9.0%. What are the MIRRs for the Singing Fish Fine Foods projects? What are the MIRRs when you adjust for unequal lives? Do the MIRR adjusted for unequal lives change the decision based on MIRRs? Hint: Take all cash flows to the same ending period as the longest project.
**Please note: I need the MIRR for the unequal lives. I did find the reinvestment rate for the deli as 11.67% & the wine section as 10.74%. I need help with the rest of the problem. Thanks.
In: Finance
McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $865 per set and have a variable cost of $425 per set. The company has spent $340,000 for a marketing study that determined the company will sell 70,600 sets per year for seven years. The marketing study also determined that the company will lose sales of 13,800 sets of its high-priced clubs. The high-priced clubs sell at $1,235 and have variable costs of $695. The company will also increase sales of its cheap clubs by 15,800 sets. The cheap clubs sell for $455 and have variable costs of $245 per set. The fixed costs each year will be $10,750,000. The company has also spent $2,900,000 on research and development for the new clubs. The plant and equipment required will cost $39,200,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $3,600,000 that will be returned at the end of the project. The tax rate is 24 percent, and the cost of capital is 12 percent.
a. Calculate the payback period. (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
b. Calculate the NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. Calculate the IRR. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
In: Finance
In: Economics
TOPIC:
In: Finance
1. Given the following information and ignoring taxes, what is the annual cash revenue that will make the net present value equal to zero (i.e., the annual cash revenue that will cause us to break-even in the financial sense)?
In: Finance
The MoMi Corporation’s cash flow from operations before interest
and taxes was $2.5 million in the year just ended, and it expects
that this will grow by 5% per year forever. To make this happen,
the firm will have to invest an amount equal to 19% of pretax cash
flow each year. The tax rate is 21%. Depreciation was $310,000 in
the year just ended and is expected to grow at the same rate as the
operating cash flow. The appropriate market capitalization rate for
the unleveraged cash flow is 12% per year, and the firm currently
has debt of $5 million outstanding. Use the free cash flow approach
to calculate the value of the firm and the firm’s equity.
(Enter your answer in dollars not in
millions.)
In: Finance
Investigate the 'turbine blade (for jet engine) making process'
Hint: Turbine blade is made of superalloy. Recently, it shows the single crystalline structure.
Format: Format is the same with previous homework. A4 up to 4-5 page. Photo and figures are welcome. References should be written.
In: Civil Engineering
In: Physics
Discuss the major causes of fraud over the last few years. What areas have increased and what areas have decreased? Why is this the case? Have the costs of fraud increased or decreased? What is the single most effective method to prevent fraud from occurring according to the report?
In: Finance
Question 1
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The Law of Demand states that a(n)
Select one:
Change in price will lead to no change in the quantity demanded
Decrease in price will lead to a decrease in the quantity demanded
Increase in price will lead to an increase in the quantity demanded
Increase in price will lead to a decrease in the quantity demanded
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Question 2
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The following table contains the demand and supply schedules for Lego sets.
Lego Demand |
Lego Price ($) |
Lego Supply |
5,000 |
6.00 |
6,500 |
5,250 |
5.50 |
6,000 |
5,500 |
4.50 |
5,500 |
5,750 |
4.00 |
5,000 |
6,000 |
3.50 |
4,500 |
According to the table, the market equilibrium price and quantity of Lego sets are
Select one:
$4.50 and 5,000 Lego sets
$5.50 and 5,500 Lego sets
$4.50 and 5,500 Lego sets
$6.00 and 6,500 Lego sets
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Question 3
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The following table contains the demand and supply schedules for Lego sets.
Lego Demand |
Lego Price ($) |
Lego Supply |
5,000 |
6.00 |
6,500 |
5,250 |
5.50 |
6,000 |
5,500 |
4.50 |
5,500 |
5,750 |
4.00 |
5,000 |
6,000 |
3.50 |
4,500 |
If the price of a Lego set was $4.00, then this would result in
Select one:
A surplus of 750 sets
A shortage of 750 sets
A shortage of 250 sets
A surplus of 250 sets
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Question 4
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A market with no barriers to entry will make zero economic profit in the long run because
Select one:
The government will intervene to keep prices low to protect consumers
There is no barrier preventing outside firms entering the market, increasing market supply and decreasing price
Any form of competition always results in losses being made
There is no barrier preventing firms leaving the market and competing elsewhere
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Question 5
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If Woolworths increases the price it charges for a loaf of bread soon after Coles does, then this is
Select one:
An example of monopolistic competition and product differentiation
An example of an oligopoly market structure and mutual interdependence
An example of a monopoly because there is no difference between the two supermarkets
An example of perfect competition and a homogeneous product
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Question 6
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The expenditure approach calculates gross domestic product (GDP) according to
Select one:
GDP = C + I + G + (M – X)
GDP = C + I + G + X
GDP = C + I + G + (X + M)
GDP = C + I + G + (X – M)
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Question 7
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Which of the following would not be included in the government expenditure component (G) of GDP?
Select one:
Transfer payments made to social security recipients
Payments made to repair bridges and tunnels of a major highway
Salaries paid to government employees
The purchase of paper clips and staplers in a government department
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Question 8
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Which of the following would not shift the aggregate demand (AD) curve for an economy?
Select one:
A change in the aggregate price level
An increase in consumption
A decrease in government spending
An increase in exports
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Question 9
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Frictional unemployment in an economy refers to
Select one:
Long term unemployment caused by the business cycle
Short term unemployment caused by workers moving between jobs
Unemployment caused by workers not having the required skills, education or training
Unemployment caused by the ups and downs of the business cycle
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Question 10
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Cost push inflation refers to a
Select one:
Rise in prices because of a left shift in the aggregate demand curve
Fall in prices due to decreased unemployment in a recession
Rise in prices resulting from an excess of total spending (demand) over supply
Rise in prices resulting from an increase in the cost of production, irrespective of demand conditions
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Question 11
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Once again consider the demand and supply schedules for Lego sets. Suppose there is an increase in the demand for Lego sets because of a new Lego movie that has just been released at the cinema. The increase in demand for Lego is 750 sets at each and every price. Determine the new demand schedule by completing the table below. What is the new equilibrium price and quantity?
Lego Price ($) |
Lego Demand |
New Lego Demand |
Lego Supply |
6.00 |
5,000 |
Answer |
6,500 |
5.50 |
5,250 |
Answer |
6,000 |
4.50 |
5,500 |
Answer |
5,500 |
4.00 |
5,750 |
Answer |
5,000 |
3.50 |
6,000 |
Answer |
4,500 |
New equilibrium price = $Answer |
Quantity = Answer |
Question 12
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Given the increase in demand in Question 11, in what direction will the demand curve shift? Explain why. Which of the following charts (A, B, C or D) best shows what is happening in the Lego market?
Question 13
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Consider the following demand curve for energy bars. Calculate the price elasticity of demand (PED) if the price increases from $1.50 to $2.00 (you can use approximate quantities obtained from the chart). Is the PED for energy bars elastic or inelastic? Explain why.
In: Economics
How many grams of O2 can be prepared from the thermal decomposition of 4.09kg of H2O
In: Chemistry
Corp is looking at the effect of change in the working capital in a project that will last 5 years. the working capital will increase by $125,000 in the first year, and then increase again by $80,000 in the second year. the working capital level will remain unchanged in year 3 and 4: and will drop by $205,000 in year 5 (when the project end) what is the NPV of theses working capital cash flows in the discount rate is 15%???
can you please explain the answers with the steps ... thanks
In: Finance
What is the most important role of a manager and why? What key decisions do managers make to reinforce their effectiveness in that role? Please provide real life examples or draw upon managerial examples you admire from your research or readings.
In: Economics
Looking at the East Asian economic development models,
(1) what is there challenges to overcome?
(2) Policy recommendation that EA countries can be more economically developed
In: Economics