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Q: led to a ser re forced +
A: 1) Reorganization is the process where a business which is in trouble to meet its financial…
Q: Why are CMOs overcollateralized?
A: CMO is the abbreviation used for collateralized mortgage obligation. It uses collaterals which are…
Q: How is ARR calculated?
A: ARR: Accounting Rate of Return (ARR) is the rate of return earned on the investment made in a…
Q: Explain the call-put parity relation and how it is justified?
A: call-put parity relation 1. It shows the prices of calls and puts , consistency of underlying…
Q: Define direct write-off method
A: Accounts receivable: Accounts receivable refers to the amount to be received within a short period…
Q: A) What is VAT? what is the difference between input and output VAT?
A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: In words, what is put-call parity?
A: Put-Call Parity It is a fundamental that shows the relation of option price i.e the European call…
Q: nmunicatio ortant with
A: As per rule, allowed to answer one question at a time and post the remaining in the next submission.
Q: Explain Anti-dilutive Security
A: Explanation to Securities Securities are referred to as the tradeable financial instruments which…
Q: What is LIFO?
A: Definition: Inventory cost flow methods: These are the methods used by the companies to compute the…
Q: What islockbox system?
A: Banks provide various services to the organizations such as lock box facility, overdraft facility,…
Q: Define terminal value
A: Terminal value is the value of the project or the security at the end of a specified future date.…
Q: Explain PV
A: Time value of money is one of the most fundamental and basic concepts of investing. The phrase “Time…
Q: Could a CMO exist without a Z class
A: Introduction: A CMO is a form of mortgage-backed securities in which many different types of…
Q: and maint system?
A: Given information : Initial expenditure = $20 million Time period = 180 years Periodic expenses =…
Q: Define First-In, First-Out (FIFO) method.
A:
Q: What is nonoperating assets?
A: Non-operating assets are the assets that are not required or in use for normal business activity.…
Q: this e gilhiPment
A: Step 1 Depreciation is the written down in the value of the assets.
Q: what is an example of data flow diagram, fixed asses system?
A: A data flow diagram (DFD) refers to a graphical representation of a flow of any information or…
Q: Parallel
A: ISTISNA AND PARALLEL ISTINA :
Q: Formula for put call parity?
A: Put call parity Put-Call parity defines the value of same class European put and call options. Put…
Q: What is a constraint?
A: Internal Control: It refers to a set of rules, policies adopted by a business to ensure accuracy…
Q: -. Using the sa , determine t oncontrolling
A: As per the given information in the above question we must determine the carrying amount of the…
Q: Explain an example of faithful representation.
A:
Q: Explain what is meant by the term “system”. How do subsystems, systems and systems of systems…
A: Accounting Information system is a set of components used for gathering, making, storing, preparing,…
Q: stimat- r this
A: Under % the age completion method the revenue is recognized on the basis of the cost…
Q: nformation technology has ha
A: IT is the development and management of an organization's processes, strategies, and functions based…
Q: What is the LIFO conformity rule?
A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…
Q: How do CDOs differ from CMBSs?
A: Difference between CDO and CMBS is that CMBS is a subset of CDO. In CMBS the underlying assets are…
Q: the PW of machine A is:
A: The correct option is : A
Q: nost outspok of managen m.
A: The answer is Milton Friedman
Q: Explain proxy fight
A: A proxy fight situation arises when a group of shareholders are not satisfied with the senior…
Q: Define Indirect method
A: Hey there ! Since particular concept is not given, indirect method is assumed under cash flow…
Q: What is task-data dependency?
A: The lack of ability of a user to get additional data when their requirements fluctuate is known as…
Q: How can we compute the true IRR, or RIC, as a function of the MARR?
A: Minimum Acceptable rate of return is the minimum rate which the management wishes to have from any…
Q: What is canonical cover in DBMS?
A: DBMS programming essentially works as an interface between the end-client and the data set, all the…
Q: What is MIRR - Modified Internal Rtae of Return? Please provide example.
A: One of the pitfall method of conventional IRR is the fact that it assumes cash flows are reinvested…
Q: What is put–call parity?
A: Conditions where two or more things are equal are known as parity. It refers to two securities…
Q: An allocation base:
A: An allocation base is the basis on which Cost accounting allocates overhead costs. An allocation…
Q: What assertions are tests for transaction classes?
A: Management assertions are the claims made by the management about the items in the financial…
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- Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream of returns, the capital requirements, and the available capital funds over the next three years are summarized as follows: Develop and solve an integer programming model for maximizing the net present value. Assume that only one of the warehouse expansion projects can be implemented. Modify your model from part (a). Suppose that if test marketing of the new product is carried out, the advertising campaign also must be conducted. Modify your formulation from part (b) to reflect this new situation.Carizick Co manufactures gaming products. It has created a new games console called the QpBox which is about to be launched. Demand for the QpBox is anticipated to be high. The product life cycle of the QpBox is expected to be three years with 300,000 units forecast to be sold during its first year. Sales volumes are expected to decrease by 75,000 units in each subsequent year. Production volumes will be based on expected demand levels. The following costs for the QpBox have been determined: Design and development Pre-launch advertising Advertising in Year 2 Packaging Manufacturing cost $120m $0.5m $0.4m $3 per unit $80 per unit At a recent board meeting, the finance director said that Carizick Co should look to maximise the profitability of the QpBox over its life cycle. The marketing director made the comment that Carizick Co should focus on extending the maturity phase of the life cycle only as this stage is where the QpBox is most profitable. Contract with Zone Co Carizick Co has…A manager must decide how many machines of a certain type to buy. The machines will be used to manufacture a new gear for which there is increased demand. The manager has narrowed the decision to two alternatives: buy one machine or buy two. If only one machine is purchased and demand is more than it can handle, a second machine can be purchased at a later time. However, the cost per machine would be lower if the two machines were purchased at the same time. The estimated probability of low demand is .30, and the estimated probability of high demand is .70. The net present value associated with the purchase of two machines initially is $79,200 if demand is low and $130,600 if demand is high. The net present value for one machine and low demand is $99,000. If demand is high, there are three options. One option is to do nothing, which would have a net present value of $124,680. A second option is to subcontract; that would have a net present value of $115,650. The third option is to…
- Raider Corporation is planning to introduce a new product to its product line. 1. You are tasked with conducting a Cost - Volume - Profit (CVP) analysis for the new product. 2. Discuss the key components of CVP analysis, including the breakeven point, contribution margin, and margin of safety. 3. Additionally, explain how CVP analysis can assist Raider Corporation in making strategic decisions related to pricing, sales volume, and overall profitability for the new product. 4. Discuss any assumptions or limitations associated with CVP analysis that management should be aware of when using this tool for decision-making. 5. Finally, suggest potential strategies that Raider Corporation could employ to improve its CVP metrics and enhance the financial performance of the new product.The Miramar Company is going to introduce one of three new products: a widget, a hummer, or a nimnot. The market conditions (favorable, stable, or unfavorable) will determine the profit or loss the company realizes, as shown in the following payoff table: a. Compute the expected value for each decision and select the best one. b. Develop the opportunity loss table and compute the expected opportunity loss for each product. c. Determine how much the firm would be willing to pay to a market research firm to gain better information about future market conditions.Problem #2 Lebanon Metal Company (LMC), a manufacturer of various metal parts, must decide whether to enter the competition to become the supplier of transmission housings for Gulf Electric, a company that produces the housings in its own in-house manufacturing To compete, LMC must purchase a new forge that will cost $ 1 50,000. If LMC gets the order, it may be able to sell as many as 3,000 units per year to Gulf Electric for $60 each, and costs will be $15 per unit. The firm expects that the project will have about five-year product life. The firm also estimates that the amount ordered by Gulf Electric in the first year will be ordered in each of the subsequent four years. The initial investment can be depreciated on a MACRS-GDS basis over a 5-year period, and the tax-rate is expected to remain 40%. At the end of five years, the forge is expected to retain a market value of $50,000 at the end of year 5. LMC's before tax MARR is 15% per year.
- As a manager, you have to choose between two options for new production equipment. Machine A will increase fixed costs by a substantial margin but will produce greater sales volume at the current price. Machine B will only slightly increase fixed costs but will produce considerable savings on variable cost per unit. No additional sales are anticipated if Machine B is selected. What are the relative merits of both machines, and how could you go about analyzing which machine is the better investment for the company in terms of both net operating income and break-even?Southland Corporation’s decision to produce a new line of recreational products resulted in the need to construct either a small plant or a large plant. The best selection of plant size depends on how the marketplace reacts to the new product line. To conduct an analysis, marketing management has decided to view the possible long-run demand as low, medium, or high. The following payoff table shows the projected profit in millions of dollars: What is the decision to be made, and what is the chance event for Southland’s problem? Construct a decision tree. Recommend a decision based on the use of the optimistic, conservative, and minimax regret approaches.Suppose that you are the manager of a studio cafe, and you are planning to invest on a new camera and a coffee maker designed to increase the productivity of your employees and output (services) produced. Your analyst provided you the following information: A. Complete the table below. Should the new camera and coffee maker be purchased? Explain your answer based on the incremental analysis.
- 1. Compute the annual net cost savings promised by the automated welding machine. 2a. Using the data from (1) above and other data from the problem, compute the automated welding machine’s net present value. 2b. Would you recommend purchasing the automated welding machine? 3. Assume that management can identify several intangible benefits associated with the automated welding machine, including greater flexibility in shifting from one type of product to another, improved quality of output, and faster delivery as a result of reduced throughput time. What minimum dollar value per year would management have to attach to these intangible benefits in order to make the new welding machine an acceptable investment?As a start-up company, Blue Enterprises encourages its employees to think through the entire value chain to estimate whether it might be worthwhile to take a risk on new products. As part of that program, Laura is reviewing a product concept that her intern presented to her. The basic idea is to use a common process, which would result in two intermediate products. One product could be sold right away (X). The other product (Y) would have no immediate sales value but after further processing would yield a very high- value product. Laura is intrigued enough to dig further into her intern's quantitative analysis, as follows. Sales value of X immediately after the joint process Sales value of Y after further processing Product X's share of the joint process cost Proportion of joint cost allocated to Product Y (a) Your answer is correct. $53,750 $406,000 $20,000 87.5% Based on this information, determine which joint cost allocation method the intern must have used when allocating the joint…As a start-up company, Oriole Enterprises encourages its employees to think through the entire value chain to estimate whether it might be worthwhile to take a risk on new products. As part of that program, Sharon is reviewing a product concept that her intern presented to her. The basic idea is to use a common process, which would result in two intermediate products. One product could be sold right away (X). The other product (Y) would have no immediate sales value but after further processing would yield a very high- value product. Sharon is intrigued enough to dig further into her intern's quantitative analysis, as follows. Sales value of X immediately after the joint process Sales value of Y after further processing Product X's share of the joint process cost Proportion of joint cost allocated to Product Y (a) Your answer is correct. (b) Based on this information, determine which joint cost allocation method the intern must have used when allocating the joint costs to these…