Questions
p25.) A firm is considering replacing the existing industrial air conditioning unit. They will pick one...

p25.)

A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,257.00 to install, $5,170.00 to operate per year for 7 years at which time it will be sold for $7,061.00. The second, RayCool 8, costs $41,293.00 to install, $2,116.00 to operate per year for 5 years at which time it will be sold for $8,997.00. The firm’s cost of capital is 6.55%. What is the equivalent annual cost of the AC360? Assume that there are no taxes.

In: Finance

Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has...

Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 8%, and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero-growth firm and pays out all of its earnings as dividends. The firm's EBIT is $13 million, and it faces a 25% federal-plus-state tax rate. The market risk premium is 6%, and the risk-free rate is 6%. BEA is considering increasing its debt level to a capital structure with 40% debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 11%. BEA has a beta of 0.8.

What is BEA's unlevered beta? Use market value D/S (which is the same as wd/ws) when unlevering. Do not round intermediate calculations. Round your answer to two decimal places.

What are BEA's new beta, cost of equity (Rs), and WACC if it has 40% debt? Do not round intermediate calculations. Round your answers to two decimal places.

In: Finance

On a railroad a -0.8% grade meters at 0.4% grade station 2+700 whose elevation of 300...

On a railroad a -0.8% grade meters at 0.4% grade station 2+700 whose elevation of 300 m. The maximum allowable change in grade per station having a length of 20m. is 0.15.

  1. Compute the length of cuve.
  2. Compute the stationing where a culvert be located.
  3. At what elevation must tge invert of the culvert be set if the pipe has a diameter of 0.9m. and the backfill is 0.3m depth. Neglect thickness of pipe.

In: Mechanical Engineering

European call and put options with a strike price of $50 will expire in one year....

European call and put options with a strike price of $50 will expire in one year. The underlying stock is selling for $51 currently and pays no cash dividend during the 1life of the options. The risk-free rate is 5% (continuous compounding). The price of the call option is $5.00. Please answer the following questions:

1. Please calculate the price of the put option under the put-call parity

2. If the actual price of the put is $2.50, is there an arbitrage opportunity? Please explain.

3. If your answer in 2 is yes, please write down the four transactions needed to realize the arbitrage profit.

In: Finance

What are the risks and problems of living in subdivided housing units? List and explain four...

  1. What are the risks and problems of living in subdivided housing units? List and explain four of them.
  1. You are offered an annuity that will pay $10,000 a year for ten years (that is, ten payments), but the payments start after five years have elapsed. If you want to earn 8% on your funds, what is the maximum you should pay for this annuity?

In: Finance

Richard Scott, CEO of XYZ Enterprises, is considering a merger with Empire Inc., which is led...

Richard Scott, CEO of XYZ Enterprises, is considering a merger with Empire Inc., which is led by CEO Mickey Thompson. The merger of their two firms will enable the creation of a very large diversified conglomerate, with businesses ranging from office supplies to sporting goods, industrial paints, consumer electronics, video games, and marine engines. Consultants from Boston Consulting Group have advised Scott and Thompson that the merger could create a great deal of value, because the new combined entity can use several lucrative yet mature "cash cows" within Empire Inc. to fund the growth of several promising, but not yet highly profitable, young businesses. Scott and Thompson have decided to seek a second opinion from your consulting firm, International Associates.

Please respond to the following questions posed to you by these two CEOs:

  • Could you please explain the BCG matrix to us? What is the logic of this model? What are the model’s limitations and weaknesses?
  • Should we be employing the matrix to evaluate this merger? Could we create value in the manner that BCG has described?

In: Operations Management

All airplane passengers at the Lake City Regional Airport must pass through a security screening area...

All airplane passengers at the Lake City Regional Airport must pass through a security screening area before proceeding to the boarding area. The airport has three screening stations available, and the facility manager must decide how many to have open at any particular time. The service rate for processing passengers at each screening station is 6 passengers per minute. On Monday morning the arrival rate is 7.2 passengers per minute. Assume that processing times at each screening station follow an exponential distribution and that arrivals follow a Poisson distribution.

Note: Use P0 values from Table 11.4 to answer the questions below.

  1. Suppose two of the three screening stations are open on Monday morning. Compute the operating characteristics for the screening facility.

    Round your answer to four decimal places.

    P0 = ??

    Round your answers to two decimal places.

    Lq = ??

    L = ??

    Wq = ??min

    W = ??min

    Round your answer to four decimal places.

    Pw = ??
  2. Because of space considerations, the facility manager's goal is to limit the average number of passengers waiting in line to 10 or fewer. Will the two-screening-station system be able to meet the manager’s goal?

    Yes
  3. What is the average time required for a passenger to pass through security screening? Round your answer to two decimal places.

    ?? min

In: Operations Management

Use the excel document found in the Assignments tab to answer the questions below. Part A:...

Use the excel document found in the Assignments tab to answer the questions below.

Part A: (1 mark)

Advent Company wants to introduce a new printer called the Blitzer. The company believes demand will be 10,000 units per year at a price of $50 per printer. Advent would invest $300,000 and requires a 50% return on their investment.

Calculate the target cost per unit for the new Blitzer printer.

Part B: (1 mark)

Growing Inc. manufactures growth charts. Growing Inc. has recently invested in a new machine that can individualize the picture displayed on the growth chart. They believe demand for this new type of growth chart will be 50,000 charts per year at $15 per chart. The machine will cost $500,000. They would like to earn 45% on this investment.

Calculate the total target cost for 50,000 units for the new style of growth chart.

Part C:

Talia Corp. produces digital cameras. For each camera produced, direct materials are $27, direct labour is $15, variable manufacturing overhead is $18, fixed manufacturing overhead is $32, variable selling and administrative expenses are $7, and fixed selling and administrative expenses are $22.

Calculate the target selling price assuming that a 40% markup on total per unit cost is required.

In: Operations Management

Python: Write a program that keeps track of a game score and declares the winner when...

Python:

Write a program that keeps track of a game score and declares the winner when the game is over. A game is over when either one player scores 10 or more points with at least 2 more points than the opponent. A game is also over when one player scores 7 points and the opponent scores none. The program should begin by asking the names of the two players. Then, it should keep asking who won the point till the game is over (you will need to prompt user to determine who won the point. In the end it should display the winner and the final score.

In: Computer Science

Use the Internet to search for an example of an enthymeme in the media (e.g., Internet,...

Use the Internet to search for an example of an enthymeme in the media (e.g., Internet, television, radio, newspapers, etc.).

  • You may find an op-ed, political piece, advertising, et cetera.
  • Identify the implied premise in the enthymeme.
  • Why did you choose this example?

In: Operations Management

Explain 10 ways to improve a person with weight problem and low self-esteem and how the...

Explain 10 ways to improve a person with weight problem and low self-esteem and how the family and friends can help them.

In: Psychology

How does gender socialization influence who runs for office and for whom we vote? How are...

How does gender socialization influence who runs for office and for whom we vote? How are female politicians treated by the media, compared with male politicians? How has that impacted your own perception of female politicians?

In: Psychology

Quantitative Problem: Adams Manufacturing Inc. buys $10.8 million of materials (net of discounts) on terms of...

Quantitative Problem: Adams Manufacturing Inc. buys $10.8 million of materials (net of discounts) on terms of 2/10, net 50; and it currently pays after 10 days and takes the discounts. Adams plans to expand, which will require additional financing. If Adams decides to forgo discounts, how much additional credit could it obtain? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent. Use a 365-day year.

$

What would be the nominal and effective cost of such a credit? Do not round intermediate calculations. Round your answers to two decimal places. Use a 365-day year.

Nominal cost: ?

Effective cost?

If the company could receive the funds from a bank at a rate of 8.30%, interest paid monthly, based on a 365-day year, what would be the effective cost of the bank loan? Do not round intermediate calculations. Round your answer to two decimal places.

?? %

Should Adams use bank debt or additional trade credit?

In: Finance

write a company overview on the production company of neflix

write a company overview on the production company of neflix

In: Operations Management

Suppose THREE packets, each of length, L = 20 bits arrive at a router at the...

Suppose THREE packets, each of length, L = 20 bits arrive at a router at the same time. Assume that there are no packets being transmitted or queued at the router. Let the router's transmission rate, R = 5 bit/seconds.

1.What is the queuing delay for each of these 3 packets?

2.What is the average queuing delay for the 3 packets?

3.Suppose the speed of propagation is s m/s, the distance between A and B is d meters, and the transmission rate of the link between A and B is R bps.Consider sending two packets of size L1 bits and L2 bits from A to B.

What is the total delay of sending these two packets from A to B in terms of L1, L2, R, d and s? Ignore the processing delay.

In: Computer Science