2. Net present value (NPV)The capital budgeting process is comprehensive and is based on certain assumptions, models, and benchmarks. This process often begins with a project analysis. Generally, the first step in a capital budgeting project analysis—which occurs before any evaluation method is applied—involves estimating the _____________. Evaluating cash flows with the NPV methodThe net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to good investment decisions. Consider this case:Suppose Blue Hamster Manufacturing Inc. Is evaluating a proposed capital budgeting project (project Alpha) that will require an initial investment of $600,000. The project is expected to generate the following net cash flows:YearCash FlowYear 1 $350,000Year 2 425,000Year 3 450,000Year 4 475,000Blue Hamster Manufacturing Inc. ’s weighted average cost of capital is 7%, and project Alpha has the same risk as the firm’s average project. Based on the cash flows, what is project Alpha’s net present value (NPV)? (Note: Do not round your intermediate calculations. )$828,024$228,024$993,629$1,278,024Making the accept or reject decisionBlue Hamster Manufacturing Inc. ’s decision to accept or reject project Alpha is independent of its decisions on other projects. If the firm follows the NPV method, it should____ project Alpha. Suppose your boss has asked you to analyze two mutually exclusive projects—project A and project B. Both projects require the same investment amount, and the sum of cash inflows of Project A is larger than the sum of cash inflows of project B. A coworker told you that you don’t need to do an NPV analysis of the projects because you already know that project A will have a larger NPV than project B. Do you agree with your coworker’s statement?No, the NPV calculation is based on percentage returns, so the size of a project’s cash flows does not affect a project’s NPV. Yes, project A will always have the largest NPV, because its cash inflows are greater than project B’s cash inflows. No, the NPV calculation will take into account not only the projects’ cash inflows but also the timing of cash inflows and outflows. Consequently, project B could have a larger NPV than project A, even though project A has larger cash inflows

Answers

Answer 1

It is necessary to perform an NPV analysis of both projects to determine which one has the higher NPV.

The first step in a capital budgeting project analysis involves estimating the cash flows of the project.

Based on the given information for Blue Hamster Manufacturing Inc., the net present value (NPV) of project Alpha can be calculated using the NPV formula:

NPV = -Initial investment + ( all Cash flow year with power 2)

NPV = [tex]-$600,000 + ($350,000 / (1 + 0.07)^1) + ($425,000 / (1 + 0.07)^2) + ($450,000 / (1 + 0.07)^3) + ($475,000 / (1 + 0.07)^4)[/tex]

NPV = $993,629.03

Therefore, the NPV of project Alpha is $993,629.03.

Since the NPV is positive, Blue Hamster Manufacturing Inc. should accept project Alpha, according to the NPV method.

Regarding the coworker's statement, it is not necessarily true that project A will have a larger NPV than project B, even if its cash inflows are greater. The NPV calculation takes into account not only the projects' cash inflows but also the timing of cash inflows and outflows, as well as the required rate of return. Therefore, it is necessary to perform an NPV analysis of both projects to determine which one has the higher NPV.

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Related Questions

if the t-bill rate is 7%, what are the alphas of the two stocks? (negative values should be indicated by a minus sign. do not round intermediate calculations. round your answers to 2 decimal places.)

Answers

The alphas of the two stocks are:

Alpha A = 4.50%

Alpha D = -23.50%

To calculate the alphas of the two stocks, we need to use the following formula:

Alpha = (Actual return - Expected return) - Risk-free rate

Assuming equal probabilities of the market return being 7% or 20%, the expected market return would be:

Expected market return = (0.5 x 7%) + (0.5 x 20%) = 13.5%

Therefore, the alphas of the two stocks would be:

For Stock A:

Alpha A = (15% - 13.5%) - 8% = 4.5%

For Stock D:

Alpha D = (-2% - 13.5%) - 8% = -23.5%

Therefore, the alpha for Stock A is 4.5%, while the alpha for Stock D is -23.5%.

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Full Question: If the T-bill rate is 8%, and the market return is equally likely to be 7% or 20%, what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Alpha A %

Alpha D %

In this assignment, you are given scenarios for which you must determine the most ethical response. There are many ways and processes to make ethical decisions, and if you do an Internet search for Ethical Decision Making, you will find information from three steps to eight or more steps that can be used to make an ethical decision. Three steps for ethical decision making are to determine 1) what the problem is; 2) who it affects; and 3) what the consequences will be. If you can determine the nature of the problem and who is affected by it, then it is easier to determine consequences, from which you can decide the best course of action. There are often many options when it comes to ethical decision making, so be sure to read the scenarios thoroughly and brainstorm possible outcomes. Be able to defend your options and respond to critics. Respond to one of the scenarios.

Answers

To determine which decision-making will be more ethical, it is necessary to consider a series of factors, such as the analysis of the problem, those affected by the decision and the consequences, to effectively decide which decision will be more effective.

What is ethical decision making?

It corresponds to a course of action that an individual must take in different areas, such as in the social or professional environment. An effective ethical decision will be one that will benefit as many people as possible, and this can be the guide to making the right decision.

Therefore, you can argue in your report that decisions will be ethical when they produce more positive results for more people, and this concept can be used mainly when an individual is dealing with an ethical dilemma.

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valencia is an entrepreneur who is trying to decide to increase growth in her company. she has never made a decision like this before, does not know the outcome of whatever decision she might make , and does not have ready-made rules to follow to make the best decision possible. this is most likely an example of a

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Valencia is facing a situation that requires decision-making under uncertainty, which is a common scenario for entrepreneurs.

In this case, Valencia has limited experience in making such decisions, and there is no clear set of rules or best practices that she can follow to make the best decision.

This type of decision-making is called non-programmed decision-making. Non-programmed decisions are unique, complex, and require careful consideration of all available information to make the best choice possible.

Entrepreneurs frequently face non-programmed decision-making situations, such as deciding to enter a new market, launching a new product, or seeking funding.

In such scenarios, entrepreneurs must rely on their intuition, experience, and judgment to evaluate the available information and make the best decision possible.

Valencia will need to carefully consider all available options, assess the risks and benefits associated with each option, and weigh the potential outcomes before making her decision.

Ultimately, the success of her decision will depend on her ability to make informed judgments in the face of uncertainty.

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superware, incorporated produces multiple products out of a common input. geratin is one such product, which has a sales value of $15,000 at the split-off point. joint costs allocated to geratin are $12,000. sales value of geratin increases to $25,000 after further processing, and this processing will cost $7,000. what is the net profit or loss if superware processes the product further? multiple choice ($3,000) loss $3,000 profit $20,000 profit $18,000 profit

Answers

To determine whether Superware should process Geratin further, we need to compare the incremental revenue from processing further to the incremental cost of processing.

The incremental revenue from processing further is the additional sales value after further processing minus the cost of further processing:

$25,000 - $7,000 = $18,000. The incremental cost of processing is the cost of further processing minus the joint costs allocated to Geratin: $7,000 - $12,000 = ($5,000)

Since the incremental revenue exceeds the incremental cost, processing Geratin further will result in a profit of $18,000. Therefore, the correct answer is $18,000 profit.

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10.explain why the short-run aggregate supply curve might be fairly flat in the keynesian zone of the as curve. how might we tell if we are in the keynesian zone of the as?

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The short-run aggregate supply curve is fairly flat in the Keynesian zone of the AS curve because prices and wages do not respond quickly to changes in aggregate demand. One way to tell if we are in the Keynesian zone of the AS curve is to look at the level of aggregate demand (AD) in the economy.

Because prices and wages take time to adjust to changes in aggregate demand, the short-run aggregate supply curve in the Keynesian region of the AS curve is comparatively flat. This is due to the existence of nominal rigidities, such as sticky wages and prices, in the short-run.

We can tell if we are in the Keynesian zone of the AS curve by looking at the inflation rate. If the inflation rate is low, then it is likely that the economy is in the Keynesian zone. If the inflation rate is high, then it is likely that the economy is in either the Classical or the Intermediate Zone.

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Herjavec Enterprises is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that the company can sell 20 units per year at $235,000 net cash flow per unit for the next five years. The engineering department has come up with the estimate that developing the machine will take a $17. 6 million initial investment. The finance department has estimated that a discount rate of 11 percent should be used.

a. What is the base-case NPV? (A negative answer should be indicated by a minus sign. 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. If unsuccessful, after the first year, the project can be dismantled and will have an aftertax salvage value of $10. 4 million. Also, after the first year expected cash flows will be revised up to 30 units per year or down to 0 units with equal probability. What is the revised NPV? (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. )

Answers

a. To calculate the base-case NPV, we first need to find the present value of the cash flows from selling the units for the next five years.

Present Value = CF / (1 + r)^t

Where CF is the cash flow, r is the discount rate, and t is the time period.

We have 20 units per year, $235,000 net cash flow per unit, and a discount rate of 11% (0.11).

We will calculate the present value of cash flows for each year and sum them up:

PV1 = (20 * $235,000) / (1 + 0.11)^1
PV2 = (20 * $235,000) / (1 + 0.11)^2
PV3 = (20 * $235,000) / (1 + 0.11)^3
PV4 = (20 * $235,000) / (1 + 0.11)^4
PV5 = (20 * $235,000) / (1 + 0.11)^5

Total PV = PV1 + PV2 + PV3 + PV4 + PV5

Now, we can calculate the base-case NPV:

Base-case NPV = Total PV - Initial Investment

b. To calculate the revised NPV, we need to consider the expected cash flows after the first year. The expected cash flow after the first year is:

E(CF) = 0.5 * (30 units * $235,000) + 0.5 * (0 units * $235,000) = 15 units * $235,000

Now, we will calculate the present value of cash flows for years 2 to 5 using the expected cash flow:

PV2' = (15 * $235,000) / (1 + 0.11)^1
PV3' = (15 * $235,000) / (1 + 0.11)^2
PV4' = (15 * $235,000) / (1 + 0.11)^3
PV5' = (15 * $235,000) / (1 + 0.11)^4

Total PV' = PV1 + PV2' + PV3' + PV4' + PV5'

We also need to consider the after-tax salvage value of $10.4 million after the first year:

PV_salvage = $10,400,000 / (1

the mill wheel is considering a project with a life of 3 years that will require $289,400 for fixed assets, $36,700 for inventory and $27,800 for accounts receivable. short-term debt is expected to increase by $16,500. the fixed assets will be depreciated straight-line to a zero book value over 5 years. ignore bonus depreciation. at the end of the project, the fixed assets can be sold for 20 percent of their original cost and the net working capital will return to its original level. the project is expected to generate annual sales of $275,000 and costs of $198,000. the tax rate is 21 percent and the required rate of return is 16 percent. what is the amount of the cash flow in the project's final year?

Answers

The amount of cash flow in the project's final year is $185,744.80.

To calculate the cash flow in the project's final year, we need to consider the following components:

1- Operating Income: Operating income is calculated as the difference between annual sales and costs before depreciation and taxes.

Operating Income = Annual Sales - Costs

Operating Income = $275,000 - $198,000

Operating Income = $77,000

2- Depreciation: The fixed assets will be depreciated straight-line to zero book value over 5 years, so the annual depreciation expense will be:

Depreciation Expense = Fixed Assets Cost / Useful Life

Depreciation Expense = $289,400 / 5

Depreciation Expense = $57,880

3- Taxes: Taxes are calculated based on the taxable income, which is the operating income minus depreciation.

Taxable Income = Operating Income - Depreciation Expense

Taxable Income = $77,000 - $57,880

Taxable Income = $19,120

Taxes = Taxable Income x Tax Rate

Taxes = $19,120 x 21%

Taxes = $4,015.20

4- Salvage Value: At the end of the project, the fixed assets can be sold for 20 percent of their original cost.

Salvage Value = 20% of Fixed Assets Cost

Salvage Value = 20% x $289,400

Salvage Value = $57,880

5- Change in Net Working Capital: The change in net working capital is the difference between the ending and beginning net working capital. In this case, since the net working capital is expected to return to its original level, there will be no change in net working capital.

Change in Net Working Capital = $0

Now, we can calculate the cash flow in the project's final year:

Cash Flow = Operating Income - Taxes + Depreciation + Salvage Value + Change in Net Working Capital

Cash Flow = $77,000 - $4,015.20 + $57,880 + $57,880 + $0

Cash Flow = $185,744.80

So, the amount of cash flow in the project's final year is $185,744.80.To calculate the cash flow in the project's final year, we need to consider the following components:

6- Operating Income: Operating income is calculated as the difference between annual sales and costs before depreciation and taxes.

Operating Income = Annual Sales - Costs

Operating Income = $275,000 - $198,000

Operating Income = $77,000

7- Depreciation: The fixed assets will be depreciated straight-line to zero book value over 5 years, so the annual depreciation expense will be:

Depreciation Expense = Fixed Assets Cost / Useful Life

Depreciation Expense = $289,400 / 5

Depreciation Expense = $57,880

8- Taxes: Taxes are calculated based on the taxable income, which is the operating income minus depreciation.

Taxable Income = Operating Income - Depreciation Expense

Taxable Income = $77,000 - $57,880

Taxable Income = $19,120

Taxes = Taxable Income x Tax Rate

Taxes = $19,120 x 21%

Taxes = $4,015.20

9- Salvage Value: At the end of the project, the fixed assets can be sold for 20 percent of their original cost.

Salvage Value = 20% of Fixed Assets Cost

Salvage Value = 20% x $289,400

Salvage Value = $57,880

10- Change in Net Working Capital: The change in net working capital is the difference between the ending and beginning net working capital. In this case, since the net working capital is expected to return to its original level, there will be no change in net working capital.

Change in Net Working Capital = $0

Now, we can calculate the cash flow in the project's final year:

Cash Flow = Operating Income - Taxes + Depreciation + Salvage Value + Change in Net Working Capital

Cash Flow = $77,000 - $4,015.20 + $57,880 + $57,880 + $0

Cash Flow = $185,744.80

So, the amount of cash flow in the project's final year is $185,744.80.

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the following table shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. what is your portfolio percentage return?

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Start by calculating the total value of your stocks at the beginning of the year, which is the sum of all the stock values listed in the table

Add up the total amount of dividends received throughout the year, which is also listed in the table. To determine the total value of your stocks at the end of the year, multiply the number of shares you own by the stock price at the end of the year for each stock listed in the table. Once you have the total value of your stocks at the end of the year, add this amount to the total dividends received throughout the year, subtract the total value of your stocks at the beginning of the year from the total value of your stocks at the end of the year plus dividends received throughout the year.This will give you the overall return on your portfolio. To calculate the percentage return on your portfolio, divide the overall return by the total value of your stocks at the beginning of the year and multiply by 100. The result will be your portfolio percentage return. It's important to note that this calculation does not take into account any fees or taxes that may have been incurred throughout the year. However, it provides a general idea of how your portfolio performed during the year.

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the police power includes all of the following regulations except: select one: a. zoning and building codes b. condominium covenants, rules, and regulations c. government land-use regulations d. real estate licensing laws

Answers

Option b is correct. The police power includes all of the following regulations except condominium covenants, rules, and regulations.

In order to safeguard the public's health, safety, and welfare, the government has the ability known as "police power" to impose restrictions on and manage private activity. Government land-use laws, condominium covenants are examples of police authority.

On the other hand, regulations governing real estate licensing have little direct bearing on the control of private activity for the benefit of public health, safety, and welfare.

Because they do not directly relate to the control of private activities for public health, safety, and welfare, real estate licensing regulations are not seen as an element of the police authority, although being necessary for maintaining professional standards in the real estate business.

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A specific product has demand during lead time of 350 units, with a standard deviation during lead time of 80 units. Management wants a 99% service level. a) What value of Z should be applied? b) How many units should be carried as safety stock? c) What is the appropriate reorder point?

Answers

The appropriate reorder point is 419.91 units and the units should be carried as safety stock is 233.74 units.

Explanation: A 99% service level is required by the management. Hence the Z value that corresponds to this level of service is to be determined. Therefore, the Z value is given as 2.33.a) The value of Z that is to be applied is 2.33.b) The number of units that should be carried as safety stock can be calculated as follows: Safety Stock = Z × Standard Deviation Safety Stock = 2.33 × 80Safety Stock = 186.4 units.

Therefore, the number of units to be carried as safety stock is 186.4 units) The reorder point that is appropriate for this situation can be calculated as follows: Reorder Point = Lead Time Demand + Safety Stock Reorder Point = 350 + 186.4Reorder Point = 536.4 units Therefore, the appropriate reorder point is 536.4 units.

The following formulae have been used to calculate the values: Safety Stock = Z × Standard Deviation Reorder Point = Lead Time Demand + Safety Stock

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lue Bunny bought print advertisements in two food magazines. One ad placement cost $26,215 and produced 56,405 impressions. The second placement cost $54,731 and accounted for 67,704 impressions. Calculate COST PER THOUSAND (CPM) for the two ads together. (Rounding: penny.)Blue Bunny has a website where consumers can download a discount coupon for Blue Bunny vegetable wash. Last month, the site attracted 8,895 visitors. The discount coupon was downloaded 1,050 times. Compute CONVERSION RATE for the website

Answers

The cost per thousand (CPM) is a metric used to calculate the cost of reaching one thousand people or impressions with an advertisement.

The conversion rate is a metric used to measure the percentage of website visitors who take a desired action, such as making a purchase or downloading a coupon. To calculate the conversion rate for Blue Bunny's website, we need to divide the number of coupon downloads by the total number of website visitors and then multiply by 100. To calculate the CPM for the two ads together, we need to divide the total cost of the two ad placements by the total number of impressions and then multiply by 1000.

Given:

The cost of the first ad placement is $26,215 and it produced 56,405 impressions.

The cost of the second ad placement is $54,731 and it produced 67,704 impressions.

Total cost = $26,215 + $54,731 = $80,946

Total impressions = 56,405 + 67,704 = 124,109

CPM = (Total cost / Total impressions) x 1000

CPM = ($80,946 / 124,109) x 1000

CPM = $652.79 (rounded to the nearest penny)

Therefore, the cost per thousand for the two ads together is $652.79.

Given:

The website attracted 8,895 visitors last month.

The discount coupon was downloaded 1,050 times.

Conversion rate = (Number of conversions / Number of visitors) x 100

Conversion rate = (1,050 / 8,895) x 100

Conversion rate = 11.81%

Therefore, the conversion rate for Blue Bunny's website is 11.81%. This means that out of the total website visitors, 11.81% downloaded the discount coupon.

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Melanie is the sole stockholder of Machine Inc. , an S corporation. Her basis in the stock as of the end of year 4 is $43,400. During year 5, Machine reported a loss of $19,000. During year 5, Melanie received a distribution of $38,000 from Machine and loaned $11,000 directly to Machine. Assuming that this is not a passive activity, what is Melanie's deductible loss for year 5?

Answers

Melanie's deductible loss for year 5 is $16,400.

As Melanie is the sole stockholder of Machine Inc., her basis in the stock is a crucial factor in calculating her deductible loss for year 5. We are given that her basis in the stock at the end of year 4 was $43,400.

During year 5, Machine reported a loss of $19,000, which would normally reduce Melanie's basis in the stock. However, we are not provided with information about any other transactions or events that may have affected her basis during the year.

Melanie received a distribution of $38,000 from Machine during year 5, which reduces her basis in the stock. Her basis is reduced by the distribution amount ($38,000) minus any portion of the distribution that is a tax-free return of capital, which we are not given.

Additionally, Melanie loaned $11,000 directly to Machine during year 5, which increases her basis in the stock.

To calculate Melanie's deductible loss for year 5, we need to determine her adjusted basis in the stock at the end of the year. This is calculated as her basis at the end of year 4 plus any additional contributions (such as the loan) and minus any distributions.

Adjusted Basis = Beginning Basis + Additional Contributions - Distributions

Adjusted Basis = $43,400 + $11,000 - $38,000 = $16,400

Since Machine reported a loss of $19,000 during year 5, and Melanie's adjusted basis is less than the distribution she received, her deductible loss is limited to her adjusted basis in the stock. Therefore, her deductible loss for year 5 is $16,400.

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Now create a sample business model to describe how you expect to make a profit from this business.


Include these topics in your answer:


pricing


marketing


• location


• costs


profit

Answers

Business model: Online Personal Shopping and Styling Service

Pricing:

The service offers different packages for different needs, ranging from a one-time styling session to a full wardrobe overhaul. The pricing structure is based on the level of service provided and the time required to complete the job.

Marketing:

The business will be marketed through social media platforms, targeted advertising, and partnerships with fashion influencers and bloggers. The company will also use referral and loyalty programs to incentivize customers to spread the word about the service.

Location:

As an online business, the location is not as important. However, it would be advantageous to have a physical office or showroom in a trendy area or a location close to high-end retailers and fashion boutiques.

Costs:

The primary costs include salaries for stylists, marketing expenses, website hosting, and operational expenses. There may also be costs associated with travel, client consultations, and styling materials.

Profit:

The company aims to achieve a healthy profit margin by targeting high-end clients and charging premium prices for its services. By providing personalized styling services, the company can differentiate itself from other online retailers and fashion sites.

The focus on quality and exceptional customer service will drive repeat business and referrals, ultimately leading to increased revenue and profitability.

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nilson company gathered the following reconciling information in preparing its august bank reconciliation: the adjusted cash balance per books on august 31 is question 16 options: $33,280. $32,080. $18,400. $19,680.

Answers

The adjusted cash balance per books on August 31 is option C: $18,400.

To find the adjusted cash balance per books on August 31, we need to make adjustments to the cash balance per books based on the reconciling information.

Starting with the cash balance per books of $28,000, we add the deposits in transit of $1,200 and notes receivable and interest collected by bank of $6,800, giving us a total of $36,000.

Next, we subtract the bank charge for check printing of $160, outstanding checks of $16,000, and the NSF check of $1,360. This gives us a total of $18,480.

Therefore, the adjusted cash balance per books on August 31 is option C: $18,400.

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Full Question: Nilson Company gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per books, 8/31 $28,000 Deposits in transit 1,200 Notes receivable and interest collected by bank 6,800 Bank charge for check printing 160 Outstanding checks 16,000 NSF check 1,360 The adjusted cash balance per books on August 31 is

a. $33,280.

b. $32,080.

c. $18,400.

d. $19,680.

On december 31, 2010, exxon bought an oil rig in texas for $100 million. At purchase, the rig had a life span of 10 years with no residual value. On december 31, 2015, the rig will have a book rate of return of 60%. How much profit will the rig generate by the end of 2015?.

Answers

The rig will generate a profit of $10 million by the end of 2015.

To calculate the profit generated by the rig, we need to calculate its accumulated depreciation by the end of 2015, which can be calculated as follows:

Annual depreciation = Cost of the rig / Life span of the rig

Annual depreciation = $100 million / 10 years

Annual depreciation = $10 million

Accumulated depreciation by the end of 2015 = Annual depreciation x Number of years

Accumulated depreciation by the end of 2015 = $10 million x 5 years

Accumulated depreciation by the end of 2015 = $50 million

The book value of the rig by the end of 2015 can be calculated as follows:

Book value of the rig = Cost of the rig - Accumulated depreciation

Book value of the rig = $100 million - $50 million

Book value of the rig = $50 million

Since the rig will have a book rate of return of 60% by the end of 2015, its market value will be 60% of its original cost, which is:

Market value of the rig = 60% x $100 million

Market value of the rig = $60 million

The profit generated by the rig by the end of 2015 can be calculated as follows:

Profit = Market value of the rig - Book value of the rig

Profit = $60 million - $50 million

Profit = $10 million

Therefore, the rig will generate a profit of $10 million by the end of 2015.

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ebook show me how question content area break-even sales under present and proposed conditions portmann company, operating at full capacity, sold 1,000,000 units at a price of $190 per unit during the current year. its income statement is as follows: sales $190,000,000 cost of goods sold (102,000,000) gross profit $88,000,000 expenses: selling expenses$15,000,000 administrative expenses14,700,000 total expenses (29,700,000) operating income $58,300,000 the division of costs between variable and fixed is as follows: variablefixed cost of goods sold70% 30% selling expenses75% 25% administrative expenses50% 50% management is considering a plant expansion program for the following year that will permit an increase of $11,400,000 in yearly sales. the expansion will increase fixed costs by $4,000,000 but will not affect the relationship between sales and variable costs. required: 1. determine the total variable costs and the total fixed costs for the current year. total variable costs$fill in the blank 1 total fixed costs$fill in the blank 2 2. determine (a) the unit variable cost and (b) the unit contribution margin for the current year. unit variable cost$fill in the blank 3 unit contribution margin$fill in the blank 4 3. compute the break-even sales (units) for the current year. fill in the blank 5 units 4. compute the break-even sales (units) under the proposed program for the following year. fill in the blank 6 units 5. determine the amount of sales (units) that would be necessary under the proposed program to realize the $58,300,000 of operating income that was earned in the current year. fill in the blank 7 units 6. determine the maximum operating income possible with the expanded plant. $fill in the blank 8 7. if the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year? $fill in the blank 9 8. based on the data given, would you recommend accepting the propos

Answers

Total variable costs = $71,400,000 and Total fixed costs = $17,300,000(a) Unit variable cost = $71.40 and (b) Unit contribution margin = $118.60Break-even sales (units) for the current year = 750,420 unitsBreak-even sales (units) under the proposed program for the following year = 824,868 unitsSales (units) necessary to realize the $58,300,000 of operating income = 1,242,587 unitsMaximum operating income possible with the expanded plant = $72,162,000Operating income or loss for the following year if the proposal is accepted and sales remain at the current level = $49,600,000It is important to consider other factors such as the feasibility and risks associated with the plant expansion program.

To determine the total variable costs and total fixed costs for the current year, the percentage of variable and fixed costs for each expense item is used to allocate the costs. The total variable costs are calculated by multiplying the percentage of variable costs by the total cost of goods sold, selling expenses, and administrative expenses, while the total fixed costs are calculated by subtracting the total variable costs from the total expenses.

The unit variable cost is calculated by dividing the total variable costs by the number of units sold, while the unit contribution margin is calculated by subtracting the unit variable cost from the selling price. The break-even sales (units) for the current year are calculated by dividing the total fixed costs by the unit contribution margin.

To calculate the break-even sales (units) under the proposed program, the increase in sales is added to the current sales, and the increase in fixed costs is added to the current fixed costs. The sales (units) necessary to realize the current operating income are calculated by adding the operating income to the total fixed costs and dividing the result by the unit contribution margin.

The maximum operating income possible with the expanded plant is calculated by subtracting the total variable costs and the increased fixed costs from the total sales. The operating income or loss for the following year if the proposal is accepted and sales remain at the current level is calculated by subtracting the total costs from the total sales.

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question a security consultant works for a manufacturing company and practices privilege management. in doing so, the consultant reviews control types and focuses on using clearance levels. which control type does the security consultant focus on?

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The security consultant is focusing on administrative controls, specifically privilege management using clearance levels.

Administrative controls are policies and procedures that are designed to provide security through the management of people, processes, and technology. Privilege management is a type of administrative control that involves managing user access and permissions to certain resources and systems within an organization.

Clearance levels are used to categorize the sensitivity of information or systems and determine the level of access that a user is granted based on their clearance level.

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the 30-year, 5.5 percent bonds issued by modern kitchens pay interest semiannually, mature in four years, and have a $1,000 face value. currently, the bonds sell for $1,020.66. what is the yield to maturity? 5.39% 2.68% 4.53% 4.92% 2.46%

Answers

The yield to maturity of the bond is 4.92%

To calculate the yield to maturity (YTM) of a bond, we need to find the interest rate that will make the present value of the bond's future cash flows (interest and principal payments) equal to its current market price. We can use the following formula to calculate YTM:

PV = C / (1 + r)^1 + C / (1 + r)^2 + ... + C / (1 + r)^n + F / (1 + r)^n

where PV = present value of the bond, C = periodic coupon payment, r = yield to maturity, n = number of periods until maturity, and F = face value of the bond.

In this case, the bond pays semiannual coupon payments, so there are 8 periods until maturity. The coupon payment can be calculated as follows:

Coupon Payment = Face Value x Annual Coupon Rate / 2

Coupon Payment = $1,000 x 5.5% / 2

Coupon Payment = $27.50

Using the given information, we can plug in the values into the YTM formula:

$1,020.66 = $27.50 / (1 + r)^1 + $27.50 / (1 + r)^2 + ... + $27.50 / (1 + r)^8 + $1,000 / (1 + r)^8

To solve for r, we can use an iterative process or a financial calculator. Using a financial calculator, we get:

YTM = 4.92%

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Identify the gap/s in existing academicliterature/research on celebrity endorsement advertisement inAustralia.

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To identify the gaps in existing academic literature on celebrity endorsement advertisement in Australia, a number of steps must be followed such as reviewing the academic literature, identifying key themes, analyzing the methodology, comparing global research, and recognizing areas for further research.

1. Review the academic literature: Start by conducting a thorough review of existing academic literature on celebrity endorsement advertisements in Australia. This may include articles from reputable journals, conference papers, and books on the subject.

2. Identify key themes: As you review the literature, identify the key themes and trends in the research. This will help you understand the current state of knowledge and recognize potential gaps.

3. Analyze the methodology: Examine the research methods used in the existing literature to identify any limitations or areas that could be explored further.

4. Compare to global research: Compare the research findings from Australia to those from other countries. This may reveal gaps in the Australian context or highlight unique aspects of celebrity endorsement advertisement in Australia.

5. Recognize areas for further research: Based on your analysis, identify specific gaps in the academic literature related to celebrity endorsement advertisement in Australia. These may include under-researched industries, the impact of social media, or the effectiveness of different types of celebrity endorsements.

In summary, to identify gaps in existing academic literature on celebrity endorsement advertisement in Australia, you should review the literature, identify key themes, analyze the methodology, compare to global research, and recognize areas for further research.

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2) With which of management's assertions with respect to implementing internal controls is the auditor primarily concerned?A) efficiency of operationsB) reliability of financial reportingC) effectiveness of operationsD) compliance with applicable laws and regulations

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The auditor is primarily concerned with management's assertion regarding the reliability of financial reporting with respect to implementing internal controls. Therefore, the correct answer is B)

The auditor's objective is to express an opinion on the financial statements, and in doing so, the auditor must obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error.

Management's assertion regarding the reliability of financial reporting implies that the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework, and that the financial information is complete, accurate, and reliable.  Therefore, the correct answer is B).

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hich of the following describes subscription pricing?multiple choiceall of the earrings in the accessory shop cost either $15, $20, $25, or $30.a customer can get a cheeseburger, french fries, and a soda for $1.50 cheaper than buying each of them individually.for $10.99 a month, customers can stream any movie in netflix's catalog.the price of the luxury car is purposely set high so as to suggest high quality and high status.the grocery store advertises special low prices on cereal to get customers into the store.

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Subscription pricing refers to a pricing model where customers pay a regular fee, usually on a monthly or yearly basis, to access a particular service or product.

This pricing model is becoming increasingly popular among businesses that offer services such as streaming media, online software, and subscription boxes.Out of the options given, the one that describes subscription pricing is "for $10.99 a month, customers can stream any movie in Netflix's catalog."

This is a classic example of a subscription pricing model. Netflix offers its customers access to its entire catalog of movies and TV shows for a monthly fee. Customers pay the fee, and in return, they get unlimited access to the content as long as they continue to pay the monthly fee.

The advantage of subscription pricing is that it creates a steady stream of revenue for the business, which can help with financial planning and forecasting. It also provides customers with a convenient and cost-effective way to access the products or services they need, without having to make a large upfront investment.

Overall, subscription pricing is an effective pricing strategy that offers benefits to both businesses and customers. It is a great way for businesses to generate revenue and provide customers with an affordable and convenient way to access their products or services.

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Roger Ginde is developing a program in supply chain management certification for managers. Ginde has listed a number of activities that must be completed before a training program of this nature could be conducted. The​ activities, immediate​ predecessors, and times appear in the accompanying table.


Activity

Immediate​ Predecessor(s)

Time​ (days)

A

B

C

D

B

E

​A, D

F

C

G

​E, F


This exercise contains only parts​ b, c, and d.

Part 2

​b) The critical activities for the leadership training program development project are

B - D - E - G.

Part 3

​c) The project length for the leadership training program development project

Answers

The project length for the leadership training program development project is 12 days.

A qualification programme for managers in supply chain management is being created by Roger Ginde. Before a training programme of this kind could be implemented, Ginde specified a number of tasks that needed to be accomplished. The accompanying table lists the events, their direct forerunners, and the times.

The project length for the leadership training program development project can be determined by adding the duration of all activities in the critical path.

In this case, the critical path is B - D - E - G, with a total duration of 12 days (3 days for activity B, 2 days for activity D, 4 days for activity E, and 3 days for activity G).

Therefore, the project length for the leadership training program development project is 12 days.

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Correct Question:

Roger Ginde is developing a program in supply chain management certification for managers. Ginde has listed a number of activities that must be completed before a training program of this nature could be conducted. The​ activities, immediate​ predecessors, and times appear in the accompanying table.

Gee company accumulates the following adjustment data at december 31. indicate the type of adjustment (prepaid expense, accrued revenue, and so on), and the status of accounts before adjustment (overstated or understated). (enter answers in alphabetical order.)
1. supplies of $150 are on hand. supplies account shows $1,600 balance.
2. services performed but unbilled total $900.
3. interest of $200 has accumulated (and not been paid) on a note payable.
4. rent collected in advance totaling $850 has been earned.

Answers

1. Adjustment: Prepaid expense (Supplies). Status: Supplies account is overstated.

2. Adjustment: Accrued revenue (Unbilled services). Status: Accounts Receivable is understated.

3. Adjustment: Accrued expense (Interest). Status: Note Payable is understated.

4. Adjustment: Unearned revenue (Rent collected in advance). Status: Rent collected in advance is overstated.

1. The adjustment recognizes that $150 worth of supplies are on hand, indicating a prepaid expense. The initial balance of $1,600 in the supplies account is higher than the actual supplies available, hence overstated.

2. The adjustment accounts for $900 worth of services performed but not yet billed. This indicates accrued revenue. The accounts receivable balance needs to be increased to reflect the revenue earned but not yet recorded, hence understated.

3. The adjustment recognizes $200 of accrued interest on a note payable. It represents an expense that has been incurred but not yet paid. The note payable account should be increased to account for the accrued interest, as it is currently understated.

4. The adjustment is made to recognize that $850 of the collected rent has been earned. Initially, the rent collected in advance was recorded as unearned revenue, but now it needs to be reduced to reflect the portion that has been earned, hence overstated.

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a stock has an expected return of 12.1 percent and a beta of 1.17, and the expected return on the market is 11.1 percent. what must the risk-free rate be? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

The Capital Asset Pricing Model (CAPM) is a financial model that seeks to explain the relationship between the risk of an investment and its expected return.

The formula for the Capital Asset Pricing Model (CAPM) is: Expected return on stock = Risk-free rate + Beta(stock) * [Expected return on market - Risk-free rate]

Plugging in the given values, we get: 12.1% = Risk-free rate + 1.17 * (11.1% - Risk-free rate). Solving for the risk-free rate, we get:

Risk-free rate = [12.1% - 1.17 * (11.1%)] / (1 + 1.17) = 0.0486 or 4.86%. Therefore, the risk-free rate is 4.86%.

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In 2010, a small country imported goods worth $700 billion and exported goods worth $413 billion. it exported services worth $248 billion and imported services worth $330 billion. payments on investments abroad totaled $199 billion, while returns paid on foreign investments were $125 billion. unilateral transfers from the country to other nations amounted to $94 billion. what was the country's merchandise trade deficit for 2010

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To calculate the merchandise trade deficit for the small country in 2010, we need to subtract the value of exported goods from the value of imported goods. The country imported goods worth $700 billion and exported goods worth $413 billion, giving a merchandise trade deficit of $287 billion.

It's important to note that this figure only takes into account the physical goods being traded between the country and other nations. It does not include the value of services being exported or imported, nor does it account for payments on investments or unilateral transfers.
To get a more complete picture of the country's trade balance, we can also look at these other factors. The country exported services worth $248 billion and imported services worth $330 billion, giving a services trade deficit of $82 billion. Payments on investments abroad totaled $199 billion, while returns paid on foreign investments were $125 billion, resulting in a net outflow of $74 billion. Finally, unilateral transfers from the country to other nations amounted to $94 billion, meaning that the country gave more money to other nations than it received in return.
Overall, when we take all of these factors into account, the small country had a trade deficit of $443 billion in 2010. This means that it was importing more goods and services, paying more on foreign investments, and giving more in unilateral transfers than it was exporting, receiving in investment returns, and receiving in unilateral transfers from other nations.

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The declaration, record, and payment dates in connection with a cash dividend of $97,000 on a corporation's common stock are october 1, november 7, and december 15.

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The important dates in connection with the cash dividend of $97,000 on a corporation's common stock are:

Declaration date: October 1

Record date: November 7

Payment date: December 15

The declaration date is the date on which the board of directors of a corporation announces its intention to pay a dividend to its shareholders. In this case, the declaration date is October 1.

The record date is the date on which a corporation reviews its records to determine which shareholders are entitled to receive the dividend. Only shareholders who own the stock on or before the record date will be eligible to receive the dividend. In this case, the record date is November 7.

The payment date is the date on which the dividend is actually paid to the shareholders. In this case, the payment date is December 15.

Therefore, the important dates in connection with the cash dividend of $97,000 on a corporation's common stock are:

Declaration date: October 1

Record date: November 7

Payment date: December 15

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Bob contracts to work for central construction corporation (ccc) during july for $4,500. on june 15, ccc cancels the contract. bob, on june 18, declines a similar job with design builders, inc., which would have paid $4,000. bob files a suit against ccc. as compensatory damages, bob can recover group of answer choices $500. nothing. $4,500. $4,000.

Answers

If Bob contracts to work for central construction corporation (ccc) declines a similar job with design builders, inc., which would have paid $4,000. bob files a suit against ccc. then as compensatory damages, bob can recover $4,500.

Bob can recover compensatory damages in the amount of $4,500. This is because CCC cancelled the contract, and Bob would have earned $4,500 from working for CCC during July.

Bob's rejection of a similar job with Design Builders, Inc. for $4,000 is not relevant to the damages he can recover from CCC. The compensatory damages aim to put the injured party (Bob) in the position they would have been in had the contract not been breached.

Therefore, Bob can recover the full amount he would have earned from CCC, which is $4,500.

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there was a widespread belief that commercial banks would never lend reserves to other banks at negative nominal interest rates because they have the alternative of instead. multiple choice question. holding cash buying corporate stocks and bonds being bailed out by the government lending reserves to the federal reserve

Answers

The correct answer is: holding cash. Commercial banks hold reserves with the central bank, which are typically in the form of deposits.

These reserves are used to settle transactions among banks and to meet regulatory requirements. In normal circumstances, banks may choose to lend their excess reserves to other banks in the interbank market to earn interest on those reserves. However, if the nominal interest rate on interbank lending is negative, it means that the lending bank would effectively be paying the borrowing bank to take its reserves, resulting in a loss for the lending bank.

As an alternative, commercial banks can choose to hold excess reserves as cash instead of lending them to other banks at negative nominal interest rates. Holding cash allows them to avoid the risk of incurring losses by lending at negative interest rates. While holding cash may not generate any interest income, it preserves the value of the reserves without incurring any additional risks.

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With the increasing use of internet, instead of advertising in newspapers, individuals
and firms use websites that offer free or inexpensive classified ads, social media
platforms and search engines. A. Using the supply and demand model, explain what will happen to the
equilibrium levels of newspaper advertising as the use of the Internet grows in
the long and short run. (8 marks)
b. Will the growth of the Internet affect the supply curve, the demand curve, or
both? Why

Answers

In the long run, as the use of the internet grows, the equilibrium level of newspaper advertising will decrease as the demand for newspaper advertising decreases due to the availability of free or inexpensive classified ads, social media platforms and search engines. The growth of the internet will affect both the supply and the demand curves.

A. Long-term, as internet usage increases, newspaper advertising demand will decline as a result of the availability of free or affordable classified ads, social media platforms, and search engines, which will lead to a decline in the equilibrium level of newspaper advertising.

In the short run, the equilibrium level of newspaper advertising may remain unchanged as newspaper advertising is a habit and people may continue to advertise in the newspaper out of habit.

B. The demand curve will shift to the left due to the availability of free or inexpensive alternatives to newspaper advertising, while the supply curve will shift to the right as newspaper companies may be forced to lower their prices in order to compete with the internet.

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The attempt to interfere with a person’s autonomy by preventing one from making a rational, fully informed and voluntary choice and acting instead on misleading information or emotional appeals" is the definition of

a.
price gouging.

b.
deceptive advertising.

c.
product liability.

d.
business ethics.

Answers

The attempt to interfere with a person’s autonomy by preventing one from making a rational, fully informed and voluntary choice and acting instead on misleading information or emotional appeals" is the definition of b. deceptive advertising.

This is because deceptive advertising involves presenting false or misleading information in order to persuade or manipulate someone into making a decision or taking an action they might not have otherwise taken. This can interfere with their autonomy and ability to make a rational, fully informed and voluntary choice.

It is important for businesses to practice ethical advertising and not engage in deceptive practices that could harm their customers or their reputation.

Therefore, the correct option is b. deceptive advertising.

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