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# Cost-Benefit Analysis

### Net Present Value Analysis

NPV Analysis. Dallas Legal Services, Inc., is contemplating the purchase of additional computer hardware equipment and software programming. Financial analysis resulted in the following projections for a three-year planning horizon: Hard

### Economics for Decision-Making

Task Name: Phase 3 Individual Project Deliverable Length: 6-8 slides with notes Details: The Board liked the analysis you did on valuation and agreed to proceed with the expansion plan. Your CFO, investment bankers, and consultants have all been working on the cost and benefits of various expansion options. They have agreed

### Economics and Cost-Benefit Analysis

The following matrix shows the payoffs for an advertising game between Coke and Pepsi. The firms can choose to advertise or to not advertise. Numbers in the matrix represent profits; the first number in each cell is the payoff to Coke. (Numbers in millions.) Coke (rows)/Pepsi (columns) Advertise Don't Advertise Advertise

### Net Present Value

The following is a list of four projects that Capital Corporation must choose from for the coming year: Project Project Price Annual Net Inflows A 700,000 118,861 B 670,000 109,039 C 184,000 32,549 D 273,000 48,305 1. Given a uniform rate of interest of 9% and a uniform life of the projects of 10 years each, calculat

### Demand curve - Suppose a firm's demand curve is given by P=120-0.5Q. Find the (value of) price elasticity of demand (point elasticity) for the demand curve when the price is \$100. Is demand elastic or inelastic? ...

Suppose a firm's demand curve is given by P=120-0.5Q. Find the (value of) price elasticity of demand (point elasticity) for the demand curve when the price is \$100. Is demand elastic or inelastic? Once it's determined to be elastic or inelastic, how do you come to that conclusion?

### 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

### Accounting vs. economic costs

Tara is considering leaving her current job, which pays \$56000 per year, to start a new company that makes special pens. She thinks she can sell 160000 pens during year 1 at \$20@. With overhead costs and operating expenses coming to \$3160000, she expects a profit margin of 25%. This margin is 6% larger than that of her bigges

### Economics - Consumer Surplus

Suppose that telephone co. has hired you as a consultant to determine what price it should set for calling services. Suppose that an individuals' inverse demand for wireless services in the greater Atlanta area is estimated to be P = 100 - 33Q and the marginal cost of providing wireless services to the area is \$1 per minute. Com

### Two part pricing strategy

need assistance A store estimates their average customer's demand per year is Q = 20 - 4P, and knows the marginal cost of each rental is \$1.00. How much should the store charge for an annual membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy? A. \$20 B. \$32 C. \$40 D. \$64

### 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.

### Demand, Revenue, Cost and Profit

Q = 25 - 0.05P TC = 700 + 200Q Develop demand and cost schedules. What is the quantity to sell to maximize profits? What price is needed to maximize revenue? What price is needed to maximize revenue but keep profits at a minimum of \$300?

### Firm has capacity limitations and charges \$30 for their service

A firm has capacity limitations and charges \$30 for their service during daily peak times. If the market demand elasticity drops from -3 during peak times to -5 at off peak times, how much should the firm charge to earn the maximum profit during off peak times? A. \$20 B. \$21 C. \$24 D. Not enough information to determine

### Equation for MR curve

The kinked demand curve in an oligopolistic market is defined by the equations: P = 140 - 0.5Q, and P = 200 - 2Q. a) Derive equations for the marginal revenue curves. b) Determine the price and quantity at the "kink" of the demand curve.

### 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

### Article Analysis Summary

See attached file for full description. Article Analysis Summary Use the internet or other credible resources to find an article relevant to activity-based costing (ABC), job costing, or process costing. Prepare a summary of the article. Briefly summarize the major topics of the article, and explain what can you learned a

### 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

### Discuss the small-country case of tariffs, using partial equilibrium analysis.

Please see the attached file. 1. Discuss the small-country case of tariffs, using partial equilibrium analysis. 2. Suppose the free trade market price of a car is \$10,000. It contains \$5000 worth of steel. The importing country imposes 25% tariff on car imports. a. Calculate the effective rate of protection if there

Find two sources to help you answer the following questions about the industry of your choice. ? Research any negative or positive externalities the industry produces. Does the transaction of a buyer and seller directly affect a third party? Is the effect a negative or positive externality? How does the externality impact th

### 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

### NPV, IRR, PI and Payback Period

2. There are two mutually exclusive projects under consideration by the BUILDERS-R-US Company: Year Project A Project B 0 -30,000 -50,000 1 10,000 15,000 2 10,000 15,000 3 10,000 15,000 4 10,000 15,000 The cost of capital is 10%. Calculate the following values for each project using the time value tables and Micro

### Perform an economic analysis of the airline industry.

Provide an economic profile of the airline industry including: o How does the economy affects the success of the airline industry? o What economic influences can affect the airline industry in a negative way?

### 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.