What would be the correct policy change to reduce the federal government budget deficits and debt? Evaluate this position by using the budget deficits and debt principle.
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Conch Republic Electronics Spent $750.00 to develop a prototype (or Model) for a new PDA Spent an additional $200,000 for marketing study to determine the expected sales. Can manufacture the new PDA with variable cost for $86.00 each. Fixed Costs for the operation are estimated at $3 million per year. Unit Price
I am trying to write a paper on monetary policies and need some help understanding how expansionary and contractionary monetary policies impact the various components of U.S. economy. For example the effects of monetary policy on consumers, households, businesses, GDP, unemployment, budget, and trade deficits.
Patsy a call to Sun-quest Inc., the salesman, Mike, who answered the call was extremely helpful, courteous, and convincing. "Let's say I do start the tanning service at my salon, Mike, should I go in for the less expensive tanning bed or the more expensive tanning dome?" asked Patsy, eager to sort out her dilemma. "Well," respo
Project comparisons, chain of replacement, asset replacement/retirement decision or incremental cash flows.
This case study based on the concept of mutually exclusive projects evaluation - such as project comparisons, chain of replacement, asset replacement/ retirement decision or incremental cash flows. The following formula might be applied to the questions: CFAT = Cash flow after tax CFBT = Cash flow before tax Teff = Effect
When Patsy opened her full service salon and day spa three years ago, she knew that she would have to make some difficult choices regarding the hiring and firing of qualified professionals such as cosmetologists, estheticians, nail technicians and massage therapists. However, she was confident that her salon management training
Definition and clarification of dividend payment methods, capital and operating expenditures, and capital budgeting terms.
Identify and describe at least two methods that a company can use to provide a dividend to stockholders. Under what circumstances would each of these methods most likely be used? Explain the differences between the US and other countries with respect how firms are structured (capital structure)? Why do these differences ex
PLEASE SEE ATTACHED FILES FOR DETAILS Based on the Cumulative Case Study: Desert Coffee Roasters, Inc., devise the optimal capital structure for the organization. Revise the financial plans created in previous assignments as necessary to achieve the optimal capital structure. 1. Initial set of pro forma statements a
Role of the Financial Manager Evaluate the role of the financial manager in maximizing shareholder value within today's financial markets. Compare the financial manager's viewpoint with the viewpoint of an employee or stockholder with regard to maximizing share value.
The full detail of the question has been attached. 1. Given the unit sales information in Exhibit 1, develop an annual revenue forecast for 2004 through 2009. Forecast sales first assuming that the revised Bernoulli will be introduced one year from today, and then create a forecast which is based on sales of the current model
Calculate NPV and compare to IRR. The following data have been collected by a task force of capital budgeting analysts at Sam Adams Ltd. Concerning the drilling and production of known reserves at an off-shore location: Investment in rigging equipment and related personnel costs required to pump the oil $4,900,0
Many companies today offer 401k retirement plans for their employees. A 401k plan can be a great benefit to employees, and is a nice recruiting and retention tool for the company. At NL&C, this benefit should be discussed during New Employee Orientation, which occurs in a new employee's first week on the job. As part of your
BELOW ARE TWO PROBLEMS THAT I NEED SOLVED. I HAVE ALSO ATTACHED A WORD DOCUMENT WITH THE PROBLEMS IN FORMAT THAT IS EASIER TO UNDERSTAND. THEY ARE ALSO LOCATED IN PDF FORMAT ON PAGE 170 THANKS. 1. Two companies, A and B, have the following balance sheet accounts: A B Current assets $ 150 $ 800 Fixed assets 300 2200 Curr
Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or redu
Consider this project with an internal rate of return of 13.1 percent. Should you accept or reject the project if the discount rate is 12%? Year Cash Flow 0 +$100 1 -60 2 -60
If you insulate your office for $10,000, you will save $1,000 a year in heating expenses. These savings will last forever. a. What is the NPV of the investment when the cost of capital is 8%? 10%? b. What is the IRR of the investment? c. What is the payback period on this investment? Show your work.
You can buy property today for $3M and sell it in 5 years for $4M. (no rental income on the property) a. If the interest rate is 8%, what is the present value of the sales price? b. Is the property investment attractive to you? Why or why not? c. Would your answer to (b) change if you also could earn $200,000 per year re
Can you give me some recommendations for some changes in an organizations investment strategy in order to improve its investment performance?
Yoshika Landscaping is contemplating purchasing a new ditch-digging machine that promises savings of $5,600 per year for 10 years. The machine costs $21,970 and no salvage value is expected. The company's cost of capital is 12%. You have been asked to advise Yoshika relative to this capital investment decision. As part of yo
Sunshine Corporation is considering several long-term investments. Management wants to accept the two best projects, given the following data: Project A B C D E Present Value of net cash inflows $24,000 $44,000 $15,000 $30,000 $50,000 Investment Cost 20,000 40,000 16,000 24,000 41,000 Required: 1. Determin
Capital budgeting c. fields is considering installing solar panels on his house to decrease his electricity costs. Chester has a proposal that will cost $25,450.00 for a complete installation. Engineers have estimated that he will save an average of 26% from his electricity use from the grid.the engineers have projected that
Keller Paints, Inc. Capital Budgeting Decision The production department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the paint cans instead of purchasing them. The equipment needed would cost $125,000 with a disposal value of $20,000 and would be ab
Can you think of circumstances where an Action Plan and Work Break Down Structure would not be needed and why? Please discuss.budgeting, evaluation.
The State of Florida issued $2,000,000 of 12 percent coupon, 20-year semiannual payment, tax-exempt bonds 5 years ago. The bonds had 5 years of call protection, but now the state can call the bonds if it chooses to do so. The call premium would be 5 percent of the face amount. Today 15-year, 10 percent, semiannual payment bonds
Besides net present value and internal rate of return what other criteria can companies use to evaluate investments
A company wants to maximize the combined Net Present Value (NPV) of a maximum of 6 opportunities that require up to 6 yearly investments. In each year there is only a limited amount of money available. All amounts are give in millions of dollars. Interest rate is 5%.
A project has an initial investment of $10,000, with $3,500 annual inflows for each of the subsequent four (4) years. If the required return is 15%, what is the Net Present Value (NPV)?
Let's say I just won the lottery and I'm suppose to receive $2,000 five years from now. At an interest rate of 6%, what is that $2,000 worth today?
I am having trouble calculating the present value for Offer I. Any help would be appreciated. There should be three answers to this one offer. Dr. Harold Wolf of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that
Kim wants you to review a capital project the company is looking to undertake. The project is a new line of goods the company will produce. Kim has stated that the decision to move forward will be driven by the net present value of the project (it must be positive), and the modified internal rate of return must be at least 13%.