Finance Questions

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Need answers to the below questions and problems. Prepare the answers in a word documents

11.  . A proposed nuclear power plant will cost $2.2 billion to build and then will produce cash flows of $300 million a year for 15 years. After that period (in year 15), it must be decommis-sioned at a cost of $900 million.(LO8-1and LO8-2)

a.  What is project NPV if the discount rate is 5%?

b.  What if the discount rate is 18%?12.  NPV/IRR. A new computer system will require an initial outlay of $20,000, but it will increase the firm’s cash flows by $4,000 a year for each of the next 8 years. (LO8-1)
a.  Is the system worth installing if the required rate of return is 9%?
b.  What if the required return is 14%?
c.  How high can the discount rate be before you would reject the project?

1.  Cash Flows. Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to introduce a new chip, and it forecasts annual sales of 12 million of these improved chips at a price of $25 each. However, demand for the old chip will decrease, and sales of the old chip are expected to fall to 3 million per year. The old chips cost $6 each to manufacture, and the new ones will cost $8 each. What is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (LO9-1)

2.  Incremental Cash Flows. A corporation donates a valuable painting from its private collection to an art museum. Which of the following are incremental cash flows associated with the dona-tion? (LO9-1)

a.  The price the firm paid for the painting

b.  The current market value of the painting

c.  The deduction from income that it declares for its charitable gift

d.  The reduction in taxes due to its declared tax deduction

3.  Cash Flows. Conference Services Inc. has leased a large office building for $4 million per year. The building is larger than the company needs; two of the building’s eight stories are almost empty. A manager wants to expand one of her projects, but this will require using one of the empty floors. In calculating the net present value of the proposed expansion, senior manage-ment allocates one-eighth of $4 million of building rental costs (i.e., $.5 million) to the project expansion, reasoning that the project will use one-eighth of the building’s capacity. (LO9-1)

a.  Is this a reasonable procedure for purposes of calculating NPV?

b.  Can you suggest a better way to assess a cost of the office space used by the project?

5.  Cash Flows. Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating costs of $4 million, and a depreciation expense of $1 million. If the tax rate is 25%, what is the firm’s operating cash flow?(LO9-2)

6.  Cash Flows.True or false?(LO9-2)

a.  A project’s depreciation tax shields depend on the actual future rate of inflation.

b.  Project cash flows should take account of interest paid on borrowings undertaken to finance the project.

c.  Accelerated depreciation reduces near-term cash flows and, therefore, reduces project

7.  Calculating Cash Flows. The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Deprecia-tion on the repair tools will be $10,000. (LO9-2)

a.  Prepare an income statement for the shop based on these estimates. The tax rate is 20%.

b.  Now calculate the operating cash flow for the repair shop using all three methods suggested in the chapter. All three approaches should result in the same value for cash flow.

i.  Dollars in minus dollars out.

ii.  Adjusted accounting profits.

iii.  Add back depreciation tax shield.

 
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Element Assessment Assignments-Format: Static Imagery

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lease see attached.

Please use the image attached to describe everything

Videos:

articles

Static vs. Dynamic: The Psychology Behind Cinemagraphs

Seeing Is Believing: 5 Studies About Visual Information Processing

creative briefs and talking like a human

 
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BUS 687 Assignment And Exam

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BUS687 Week 4 – Assignment

 

Decisions for Quarter Three and Third Quarter Quarterly Business Review (QBR)

[WLOs: 4] [CLOs: 1, 3, 4]

Part I: Decisions for Quarter Three. Prior to beginning work on the Decisions for Quarter Three, carefully review the content found in the “Suggestions for Quarter 3” pop-up screen and read any Quarter Three Internal Emails and/or Memos available through your Growing Your Business simulation. The pop-up will be available at the lower left (Blue Guidelines) of the Executive Summary Decisions Tab and the video, emails, and memos can be re-accessed through the Help section.

In your Growing Your Business simulation,

· Evaluate quantitative and qualitative techniques for business analysis and decision-making.

· Utilize tools from finance, marketing, information technology and human resources management to manage the profitability of overall business operations specific to Quarter 3.

· Create specific business tactics to achieve organizational survival and growth.]

The Decisions for Quarter Three Assignment

· Must be completed through the Growing Your Business simulation.

· Consider the following questions as you prepare your annual budget/plan (if the answer is “No” to any of the questions you may be at a Competitive Disadvantage and lack critical information to draw inference from):

· Did you

· Request/purchase the Marketing Report and Business Intelligence Dashboard (BID)?

· Utilize the 3 available role plays for Qtr.3?

· Consider in the R&D Projects?

· Must use the Role Play

· It is critical you read the details of the role play very carefully and any questions should immediately be referred to the Help Desk.

· You can gain differentiated competitive advantage through effective use of the role play.

· Some role players only provide qualitative information, while others provide the ability to negotiate with quantitatively.

· The role play is a scarce resource because of the limited number of calls per quarter.

· Must submit your Quarter Three Budget Plan.

· Must not have a short-range outlook over the credit limit.

· Periodically, as you modify inputs, use the “Model My Plan” at the lower right to see the impact of your decisions on the Financial Metrics.

· Input your financial decision and then click on the blue Submit My SRO button on the bottom right of the Quarterly Decisions screen.

· You must submit your Quarter Three Decisions prior to moving on this week’s Quarterly Business Review assignment.

 

Part II: Third Quarter Quarterly Business Review (QBR). Due by Day 7. You must submit your Quarter Three Decisions prior to moving on this week’s Quarterly Business Review assignment. Prior to beginning work on the Third Quarter Quarterly Business Review, review the following content from the Growing Your Business Simulation, the Suggestions for Quarter Three Decisions pop-up and your Business Intelligence Dashboard. The graphics in the dashboard should provide you with the trends (that is the time series data is growing) in data to critically analyze your competitors for the first two quarters their positions for the longer term.

With the completion of Quarter Three, you are responsible for completing your third Quarterly Business Review (QBR).  This is a qualitative and quantitative summary of your competitive performance for Quarter Three. Business reviews (or Operational Reviews) are a routine part of annual corporate activities and are very cross-functional in nature.  A major component of a QBR is around meeting commitments that are embedded in your budgetary planning process. Meeting commitments are seen explicitly in your Variances. These learnings are designed to enhance your performance in future Quarters.

In your Growing Your Business simulation,

· Evaluate quantitative and qualitative techniques for business analysis and decision-making.

· Assess the strengths, weaknesses, opportunities, and threats associated with the corporate strategy & policy process.

· Utilize tools from finance, marketing, information technology and human resources management to manage the profitability of overall business operations.

· Create specific business tactics to achieve organizational survival and growth.

The Third Quarter Quarterly Business Review Assignment

· Must be completed through the Growing Your Business simulation.

· After logging in, go to the Quarterly Decisions tab on the top right of the simulation site and then click on the Executive Summary tab to access the Quarterly Business Review section.

· Must be completed and submitted using all of the data provided including

· Quarterly Pre-Tax Net Income relative to Plan for the Quarter

· Review the Pre-Tax Net Income Chart Explanation Preview the document document

· Cash Flow walk

· Pre-tax Net Income in Plan

· Must show that Hisco is on track to Meet/Exceed its Annual Net Income Commitment through an evaluation of both quantitative and qualitative techniques for business analysis and decision making.

· Must create specific business tactics to achieve organizational survival and growth.

· After completing, check the box and submit in the lower right.

· After completing the simulation, students must save the provided pdf from the pdf found within the Executive Summary tab of the Quarterly Decisions page and submit it through Waypoint. Verify your submission was successful.

· To access the PDF for submission, click on the QTRLY Decisions tab from the simulation home page and then go to the Executive Summary tab. Within the Executive Summary page, you will find a Download link associated with each quarterly decision you completed.

· Remember, you will be receiving feedback on your QBR each quarter. You should review the feedback prior to submitting next quarter’s decisions, as there may be some critical learning that can help your performance in the next quarter.

· Must use scholarly sources in addition to the course text.

· The Scholarly, Peer-Reviewed, and Other Credible Sources (Links to an external site.) table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.

· Must document any information used from sources in APA style as outlined in the Ashford Writing Center’s Citing Within Your Paper (Links to an external site.) guide.

· Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center. See the Formatting Your References List (Links to an external site.) resource in the Ashford Writing Center for specifications.

 
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Quantitative Decision Making – Lab1

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Micromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer provided by Micromedia, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is only $600 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $9600 for two days to be incurred by Micromedia. In addition, Micromedia rents computers for its seminars at a cost of $60 per computer per day. Each student uses one computer. So, the cost of renting a computer, incurred by Micromedia, will be $120 per student. You must find the breakeven point, the point when the cost is equal to revenue for Micromedia. In addition, you must resolve an additional situation of determining the number of students needed to be enrolled in order to make a profit of $9600.

When done, submit the report in Microsoft Word (no other format will be accepted) format using the Sample Report file (attached below in the attachements) as a template by the due date.

Please upload the Excel spreadsheet too.

Tasks to be completed:

1. Define the goal seeking problem to be solved in your own words in detail.

2. Develop a mathematical model for the total profit if x represents the number of students enrolled in the seminar.

3. Develop a Microsoft Excel spreadsheet to solve your problem.

4. Run the Excel’s Goal Seek tool to determine the breakeven point. Capture and include the part of the screen to explain your results.

5. Run the Excel’s Goal Seek tool to determine the number of students need to be enrolled in order to make a profit of $9600. Capture and include the part of the screen to explain your results.

6. Upload your Excel spreadsheet

4

 

DEPARTMENT OF TECHNOLOGY AND WORKFORCE LEARNING

ETECH 889-XX Quantitative Decision Making in Industry

 

 

 

 

 

 

 

 

 

Using Excel’s Goal Seek Tool

Report 1

 

 

By

Your Name

 

 

 

 

 

 

 

Date

 

(1) Problem Definition:

Lays Chips is in the business of making chips. The one-time setup cost of the required machinery is $3,000. The variable labor and material cost of producing a chip is $2. The selling price of each chip is $5. It is assumed that all the chips that produced will be solved. We have to determine the breakeven point, the number of chips to be produced that will generate the revenue equaling the total cost. Also, we have to determine the number of chips to be produced for a desired profit.

(2) Mathematical Model:

If the cost(cp) is a function of chips produced, then the cost-volume model for producing cp chips can be expressed by the equation:

cost(cp) = 3000 + 2*cp

If revenue(cp) represents a function of chips sold then the total revenue model can be represented by the equation:

revenue(cp) = 5*cp

Model for profit, if all the chips produced are sold, can be given by (cp stands for chips produced) the equation:

profit(cp) = revenue(cp) – cost(cp) = (5*cp) – (3000 + 2*cp) = –3000 + 3*cp

(3) Microsoft Excel Solution:

The Excel solution developed is given by the following screen captures:

 

(4) Excel’s Goal Seek:

Results from Excel’s Goal Seek Tool show that the breakeven point is achieved when 1000 chips are produced, as evident from the following screen captures:

  

(5) Excel’s Goal Seek:

Results from Excel’s Goal Seek Tool show that the profit of $1000 is achieved when 1333 chips are produced, as evident from the following screen captures:

  

Results from Excel’s Goal Seek Tool show that the profit of $5000 is achieved when 2667 chips are produced, as evident from the following screen captures:

  

Conclusion and Recommendations:

The breakeven point is met when 1000 chips are produced and sold.

A profit of $1000 is achieved when 1333 chips are produced and sold.

A profit of $5000 is achieved when 2667 chips are produced and sold.

(6) Please upload your spreadsheet file too.

 
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