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
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?
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
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
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?
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
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
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.
In a 2001 New York Times article discussing the costs and benefits of mandatory recycling in New York, the author listed as the first benefit the creation of approximately 1000 private sector jobs. Discuss the logic of this statement.
How could government make a choice between two health effects? For instance, eliminating mosquitoes may end a nuisance and help prevent some diseases. To eliminate mosquitoes may require spraying a city with a toxic chemical, or using a chemical in lakes and streams that could have a biological effect. Is there such a thing as
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
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
Colin beleives that the number of job offers he will get depends on the number of courses in which his grade is B+ or better. He concludes from observation that the following figures are typical: Number of grades of B+ or better 0 1 2 3 4 Number of job offers 1 3 4 5 6 Put these numbers into a gra
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
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
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 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
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
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?
You are the Chief Economist of the FCC. The Chairman has called you in to discuss a thorny issue. Two wireless broadcasters operate on adjacent frequencies. Operator A, complying with FCC rules, installs a new low-powered cellular architecture for its radio service at a cost of $1 billion to replace its old single high powere
Attached are two problems that I can't figure out. They are not for homework but my instructor said that it would be helpful to understand them in preparation for the final. If you have time, please work 12.7 and 12.8 and show me how you did them. The text is fundamentals of engineering economics (Chan S. Park). Thank you.
Please verify that I did the problem correctly. If I didn't, please show me how to do it. Image a is the expected after-tax cash flow for a project and the expected annual general inflaction rate during the project period. Thank you.
Attached are two images of two problems and my two solutions. I feel fairly comfortable with 7-11 but would like you to double check it. 7-13 does not have a good example in the book. I did a present worth calculation and solved for i - it was a quadratic equation. However, I get 0% and 50% as my answer. This is counter-int
Solve for i* (rate of return) Net Cash Flow Project A: -18000, +10000, +20000, +30000 Project B: -20000, 32000, 32000, -22000 Project C: +34578, -18000, -18000, -18000 Project D: -56500, -2500, -6495, -78345 Project Z: -100, 60, 900 (assuming 1st # is n=0, then n=1... n=3)
What Information do you need to perform a marginal analysis to identify the profit-maximizing output, and how do you go about estimating it?
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
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
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
1. Compare the economics of the two following service producing alternatives. Use present worth analysis and incremental analysis. Use NPV at i* = 15% and confirm your answer by calculating the ROR. All numbers are in 1000 of dollars. Alternative A C=200 OC=220 OC=220 OC=220 OC=220 L=50 Year 0 Year 1 Year 2 Year 3 Ye
(2) A company can manufacture a product with two different machines. Machine "A" has a $4.00 manufacturing cost per unit and a fixed cost of $3,000 for tools. Machine B costs $45,000 to purchase and has a $0.50 manufacturing cost per unit. With an annual anticipated volume of 7,000 units. The break-even point, in years, is most