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# Cost-Benefit Analysis

### The Hard Decision to Sell a Bar After Investing in It

A local restaurant owner who was running a profitable business more many years recently purchased a 3-way liquor license. This gives him the right to sell beer, wine and spirits. The cost was about \$75000, since only 30 such licenses are issued by the state. The license is transferable, but only \$65000 is refundable if the ow

### What percentage of the CEO's total earnings is tied to profits of the firm Suppose compensation is given by W = 450,000 + 220p + 15S, where W = total compensation of the CEO, p = company profits (in millions) = \$300, and S = Sales (in millions) = \$500. What percentage of the CEO's total earnings is tied to profits of the firm? A. 6.0% B. 7.9% C. 12.6% D. 43.4%

Suppose compensation is given by W = 450,000 + 220p + 15S, where W = total compensation of the CEO, p = company profits (in millions) = \$300, and S = Sales (in millions) = \$500. What percentage of the CEO's total earnings is tied to profits of the firm? A. 6.0% B. 7.9% C. 12.6% D. 43.4% Please show calculations.

### Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges.

Need assistance with the attached case on compute overhead rates. See attached file for full problem description. Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of \$89,500 we

### You have been hired as the marketing manager for It's Popcorn Time (IPT), a purveyor of flavored popcorns and other gourmet treats.

Scenerio: You have been hired as the marketing manager for It's Popcorn Time (IPT), a purveyor of flavored popcorns and other gourmet treats. Growth has been rapid, and the owners feel it's time to expand their markets and seek new opportunities. IPT currently has the following products: 1. flavored popcorn- in addition to

### Economic cost of international trade

What's wrong with the following statement? The economic costs of international trade usually exceed the economic benefits in both the short-term and long-term. I am looking at this statement in the terms of: the opportunity or economic cost of international trade in the short term would be more expensive (thus NOT exceed the

### Solve: Price Discrimination

Question: What is the practice by a monopolist of charging each buyer the highest price he/she is willing to pay is called?

### Economics for the Global Manager

1. I select ALLTEL Wireless Corporate, briefly explain how this company uses dynamic pricing. Discuss the benefits and drawbacks of dynamic pricing for this particular company. Conclude with a summary of your findings. Cite your Reference. 2. In a committee of the United Nations you are considering the following questions: (

### Cost Measurement Systems

Quote from a senior manager of a major company: "Our firm has always had a design to cost philosophy. Our engineers have to achieve very tight cost standards when designing new products. Target costing is just the new fashionable term for something we have done all along." Do you agree with this statement? Has the firm b

### Classical Utilitarianism compared to Cost Effectiveness Analysis

Contrast CEA with utilitarianism. Do its differences, as you characterize them, make it a better or worse account of what policies we should follow in resource allocation for health?

### Cost and Qualitative Factors in Capital Investment decisions

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 your

### Airline Industry Research

I am researching the airline industry. I need to know what affects the airline industry in the following areas: Principles of economics Supply and demand Government policy and international trade Public goods and common resources Competitive markets and the labor market Wages and income Consumer choice Federal Reserve

### Use sensitivity analysis in planning capital budgeting.

Division leaders in JMI's airplane manufacturing plants have asked for your analysis for replacing old manufacturing equipment for standard planes with faster, more costly new equipment next year. This year, though JMI's innovative S2S-900 has experienced moderate initial success, the total aircraft sales have not been as great

### What performance recommendations would you make for each aspect of the value chain? What accounting tools and reports would you use?

The usage of accounting reports and performance measures in key decisions about the firm's value chain also applies to major high level areas such as usage of the firm's core competencies, outsourcing production vs. in-house, decentralization vs. centralization, management style and performance measures, and downsizing staff vs.

### Managerial Economics

Question 2 A doctor spent two weeks doing charity medical work in Mexico. In calculating her taxable income for the year, her accountant deducted as business expenses her round-trip airline ticket, meals, and hotel bill for the two-week stay. She was surprised to learn that the accountant, following IRS rules, could no deduct a

### GDP on housing and employment

Summation of the main points with explanation to get a better grasp of what it is trying to say. Real gross domestic product (GDP) After rising at an 8.2 percent annual rate in the third quarter of 2003, the fastest in almost 20 years, real gross domestic product (GDP) continued to increase in the fourth quarter, up at a

### Global Business Strategy/Regional Paper/Kenya, Africa

Analyse the role of regional integration in promoting global business of Kenya, Africa. Can you please discuss in detail the advantages and disadvantages of the regional integration (NAFTA, EU, APEC, ASEAN, CAFTA, etc.). Compare and contrast the economic development stages of countries within Kenya, Africa and the ramification

### Equity Beta

North Pole Fishing Equipment Corporation and South Pole Fishing Equipment Corporation would have identical equity betas of 1.2 if both of them were all-equity financed. The capital structures of the two firms are as follows: North Pole South Pole Debt \$1,000,000 \$1,500,000 Equity \$1,500,000 \$1,000,000 Th

### Economics Engineering

1) Consider the following estimates, and use an interest rate of 10% per year. The equivalent annual worth of alternative A is closest to: A) \$-25,130 B) \$-37,100 C) \$-41,500 D) \$-42,900 2) Consider the following estimates, and use an interest rate of 10% per year. The equivalent annual worth of alternative B is closest

### Predicted Profits

Predicted Profits Details: Con Agra's 2000 income statement showed the following, (in millions) Net Sales - \$25,386 Costs of goods sold - 21,206 Selling, administrative & general purpose expenses - 2,888 Interest expense - 303 Income before income tax and non-recurring charges - 989 Suppose the cost of goods

### Evaluate two competing product proposals, and prepare a 6-10 slide Powerpoint presentation

Some notes/clarifications to assist in doing the evaluation/analysis portion of the assignment: You may do the analysis using paper and pencil, but use of Excel would prove beneficial. You may want to set up a schedule in which column A is the Description of the specific cash flow being considered, column B is year 0 (prop

### Culture, risk analysis, and strategy formulation in global business

What is the study of culture and why is so important to global business? Please give examples of important areas of cultural study, which organizations must focus upon when deciding to go global. Why is a risk analysis so important? In your opinion, which factors of the risk analysis carry more weight than others?

### Financial Statement Analysis/Accounting

Exhibit I below contains the pension plan disclosures of Norfolk Southern Railroad. Use the information contained in this exhibit to answer the following questions: Calculate each of the following a) Recurring pension cost b) Gross pension cost c) Non-smoothed pension cost. d) Funded Status of the Plan

### Summary of cost benefit analysis

Subject: patents (cost/benefits) Details: If patents permit firms to set P>MC (P might be ten times MC or in extreme cases even 100xMC), this implies very large ?gross margins?- in accounting terms the spread between sales revenues and the cost of goods sold, before allowances for contributions to fixed costs and other costs n

### Depreciation (straight line , sum of years digits and MACRS) ; Investment Appraisal (Present Worth Analysis, Annual Cash Flow Analysism Rate of Retun Analyis, Future Worth Analyis, Benefit-Cost ratio analyis)

This two problems MUST be done in excel format. Please include explanation 1. Office equipment whose initial cost is \$100,000 has an estimate actual life of 6 years , with an estimated salvage value of \$10,000. Prepare tables listing the annual cost of depreciation and the book value at the end of each 6 years , based on

### Finding the efficient level of abatement

Given a table of info with level of abatement in percent, total cost in dollars, and total benefit in dollars how do you identitfy what the most efficient level of abatement is by general economic criteria? with this data how do you perform the cost benefit test to tell if at a given percentage level abatement is effiecient?

### Conventional & Modified Benefit Cost Ratio (BCR)

LA Transportation is considering investing in new buses. The first cost of these new buses is \$20 million. This cost will be spread equally over a 4-year period and paid at the beginning of the first year. These new buses will bring in initial revenue of \$2.5 million, and revenue will increase by \$0.75 million each year till the

### Bonus plan/benefits vs. costs

Your company currently has a bonus plan for its sales managers. If annual sales for a manager's unit exceed \$1 million, the manager receives a \$10,000 bonus. In a typical year, about 5 of the 10 managers in the firm meet the target and receive the bonus. However, the number receiving the bonus varies from year to year due to

### Based on the increase in annual income and additional investment required, select the most economical machine to purchase.

Please solve the attached problem showing your work so that I may learn from it.

### Cost Benefit Analysis of Purchasing Life Insurance

AN ENGINEER RECEIVED BY MAIL THE PROMOTION SHOWN BELOW FROM A LIFE INSURANCE COMPANY.HE HAS A NEW BORN CHILD AND WOULD LIKE TO INSURE THE CHILD,BUT DOES NOT KNOW THE OPTIMUM CHILD AGE AND THE BEST COVERAGE AMOUNT HE SHOULD SIGN UP FOR. HE NOTICES THAT THE MONTHLY PREMIUM STAYS THE SAME FOR EACH AGE GROUP SO THAT IT COULD BE LES

### Use a AA-DD diagrammatic analysis? And other questions..

Use the AA-DD diagrammatic analysis to perform the following. Assume a flexible exchange rate regime. Label your graphs and your changes clearly. a)Compare the short-run impacts if a permanent increase in money supply versus a permanent tax cut. Keep in mind that a permanent policy alters people's expectations, which in tu