Business

Exercise 1 (NPV): Rapid Parcel Service has been offered an eight-year contract to deliver mail and small parcels between army installations. To accept the contract, the company would have to purchase several new delivery trucks at a total cost of $450,000. Other data relating to the contract follow: If the contract were accepted, several old, fully depreciated trucks would be sold at a total price of $30,000. These funds would be used to help purchase the new trucks. For tax purposes, the company computes depreciation deductions assuming zero salvage value and uses straight-line depreciation. The trucks would be depreciated over eight years. The company requires a 12% after-tax return on all equipment purchases. Required: Compute the net present value of this investment opportunity. Round all dollar amounts to the nearest whole dollar. Would you recommend that the contract be accepted? Exercise 2 (IRR): Jefferson Countys Board of Representatives is considering the purchase of a site for a new sanitary landfill. The purchase price for the site is $234,000 and preparatory work will cost $88,080. The landfill would be usable for 10 years. The board hired a consultant, who estimated that the new landfill would cost the county $48,000 per year less to operate than the countys current landfill. The current landfill also will last 10 more years. For a landfill project, Jefferson County can borrow money from the federal government at a subsidized rate. The countys hurdle rate is only 6 percent for this project. Required: Calculate the landfill projects internal rate of return. Should the board approve the project? Exercise 3 (Discounted Payback Period): The management of Iroquois National Bank is considering an investment in automatic teller machines. The machines would cost $124,200 and have a useful life of seven years. The banks controller has estimated that the automatic teller machines will save the bank $27,000 after taxes during each year of their life (including the depreciation tax shiel
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jeff and ricardo agree to work together in a painting business they call 207e painting. they follow no formal procedures and have no written agreement. what business organization is 207e painting?
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What type of decision-support system analysis attempts to predict the impact of changes in the assumptions, that is, the input data, on the proposed solution?.
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in a small town of 200 people there are 30 children under 16, 24 retired people, 90 people with full-time jobs, 14 people with part-time jobs, 7 full-time students over 16, and 8 full-time homemakers. the remaining people did not have jobs, but wanted them. all but one of these had actively looked for a job in the previous 4 weeks. what is the unemployment rate in this town? (answer in decimal form)
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consider the demand function p equals 100 (1.5 to the power of negative q end exponent ). space spaceat a price of $71.00, what will be the quantity demanded?
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if an objective of public policy is to allocate pollution to those factories that face the highest cost of reducing it, then that objective could be achieved by
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gamma inc. has a reputation for paying higher than the prevailing wages in its industry. they do this in order to attract and keep the best talent. gamma inc. is a(n) . a. labor leaders b. incentive leader c. wage leader d. labor relations specialist
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a government-created monopoly arises when a.government spending in a certain industry gives rise to monopoly power. b.the government gives a firm the exclusive right to sell some good or service. c.the government exercises its market control by encouraging competition among sellers. d.the government collects taxes in a particular industry.
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2. inventory cost is least likely to include: a) production-related storage costs b) costs incurred as a result of normal waste of materials c) transportation costs of shipping inventory to customers
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suppose a country's labor force is 154.9 million (of whom 139.4 million are employed). what is the country's unemployment rate? round your answer to the nearest tenth.
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if the demand curve for good x shifts from da to d b, then a. firms would be willing to supply less of good x than before at each possible price. b. peoples incomes must have decreased. c. the price of good x has decreased. d. people are willing to buy more of good x than before at each possible price.
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In the ________ activity of scm, organizations choose suppliers to provide the goods, services, and raw materials the company needs to create their product or service.
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It is important to record documents conveying a real property interest because recording.
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on february 1, paid $12,000 cash for insurance coverage for a 5 month period starting february 1. the amount of the monthly adjusting journal entry is:
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suppose a company charges an annual premium of $100 for an insurance policy for minor injuries. actuarial studies show that in case of an injury claim, the company will pay out an average of $800 for outpatient care and an average of $4000 for an overnight stay in the hospital. they also determine that, on average, each year there are five claims made that result in outpatient care for every 1000 policies and three claims made that result in an overnight stay out of every 1000 policies. what is the expected annual profit of an insurance policy for the company?
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What are the values of the mean and the standard deviation for the standard normal model?.
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Politically speaking, which party is more apt to engage in regulatory practices over the business?
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What decision support strategy uses a technique based on identifing a similar problem with a known effective solution, and apply the approach to this problem?.
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which statement is true of the commercial service of the u.s. department of commerce? multiple choice it focuses on large businesses. it offers u.s. firms a unique global network. it offers u.s. firms practical knowledge of national markets and industries. it doesn't use information technology. it is a local business solutions unit.
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in 1880 five aboriginal trackers were each promised the equivalent of 100 australian dollars for helping to capture the notorious outlaw ned kelley. in 2000 the granddaughters of two of the trackers claimed that this reward had not been paid. the victorian prime minister stated that if this was true, the government would be happy to pay the $100. however, the granddaughters also claimed that they were entitled to compound interest. a. how much was each granddaughter entitled to if the interest rate was 3%? (do not round intermediate calculations. round your answer to 2 decimal places.) b. how much was each entitled to if the interest rate was 6%? (do not round intermediate calculations. round your answer to 2 decimal places.)
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g an exchange-traded fund (etf) is best described as: select one: a. a type of open-end fund that trades as a listed security on one of the stock exchanges. b. a professionally managed fund that requires accredited investors. c. a type of closed-end fund that trades as a listed security on one of the stock exchanges. d. a fund that operates with a fixed number of outstanding shares. e. a fund that allows you to trade funds informally online with other investors.
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suppose you buy a bond for $940 and it will pay you back $1,000 one year from now. what interest rate are you receiving? suppose you buy a bond for $940 and it will pay you back $1,000 one year from now. what interest rate are you receiving? 6.0% $60 6.2% 6.4%
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suppose haiti has a comparative advantage over other countries in producing sugar, but other countries have an absolute advantage over haiti in producing sugar. if trade in sugar is allowed, haiti
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eric potato chips each day, and does not purchase any name-brand chips. blake's hourly wage increases from $8 to $15 , and he decides to eat one name-brand bag and one generic-brand bag each day. calculate blake's income elasticity of demand for generic potato chips. quizlet
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