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Education is an example of a positive externality: acquiring more education benefits the individual student and having a more highly educated work force is good for the economy as a whole
Education is an example of a positive externality: acquiring more education benefits the individual student and having a more highly educated work force is good for the economy as a whole. The accompanying table illustrates the marginal benefit to Sian per year of education and the marginal cost per year of education. Each year
You are advising the government on how to pay for national defense. There are two proposals for a tax system to fund national defense.
You are advising the government on how to pay for national defense. There are two proposals for a tax system to fund national defense. Under both proposals, the tax base is an individual's income. Under proposal A, all citizens pay exactly the same lump-sum tax, regardless of income. Under proposal B, individuals with higher inc
Listed below are the results of XYZ Inc operations for 2005 and 2006. (Assume 4,000 shares of outstanding stock for both years.) 2005 2006 Sales . . . . . . . . . . . . . . . . . .$300,000 $350,000 Utilities expenses . . . . . . . . .
The following summary data for the payroll period ended on November 14, 2003, are available for Brac Construction, Ltd.
Accrued liabilities-payroll. The following summary data for the payroll period ended on November 14, 2003, are available for Brac Construction, Ltd.: Gross pay ?????? FICA tax with holdings ?????? Income tax withholdings 13,760 Medical insurance contributions
Capital budgeting projects include all of the following with the exception of the purchase of a six-month treasury bill. the expansion of a plant. the development of a new product. the replacement of a piece of equipment.
You are faced with the last days of a computer conversion and you are receiving calls that people have paid their bills, yet were not being credited for their payments. You later find no copies of receipts, yet patients set you copies of theirs. You know there was theft. How do you address it? How do you prove it? There were
Honda and GM are competing to sell a fleet of 25 cars to Hertz. Hertz fully depreciates all of its rental cars over five years using the straight-line method. The firm expects the fleet of 25 cars to generate $100,000 per year in earnings before taxes and depreciation for five years. Hertz is an all-equity firm in the 34-perc
2) Your firm has an opportunity to make an investment of $50,000. Its cost of capital (interest rate) is 12 percent. It expects after-tax cash flows (including the tax shield from depreciation) for the next 5 years to be as follows: Year 1 10,000 Year 2 2
The term "capital budgeting" refers to decisions a. which are made in the short run. b. which concern the spreading of expenditures over a period lasting less than one year. c. where expenditures and receipts for a particular undertaking will continue over a relatively long period of time. d. where a
Eisenhower Communications is trying to estimate the first-year operating cash flow (at T=1) for a proposed project. The financial staff has collected the following information: Sales revenues $10 million Operating costs (excluding depreciation) 7 million Depreciation 2 million Interest expense 2 million
Depreciation Methods - Kristin is evaluating a capital budgeting project that should last for 4 years.
Kristin is evaluating a capital budgeting project that should last for 4 years. The project requires $800,000 of equipment. She is unsure what depreciation method to use in her analysis, straight-line or the 3-year MACRS accelerated method. Under that straight-line depreciation, the cost of the equipment would be depreciated ove
Comment on the Unfunded Mandates document found at this address - http://www.gfoa.org/flc/documents/unfundedmandates.pdf
A mining company is considering a new project. It has received a permit, so the mine would be legal, but it would cause significant harm to a nearby river, The firm could spend an additional $10 million at year 0 to mitigate the environmental problem, but it would not be required to do so. Developing the mine (without mitigation
Comment on this document from the Commonwealth of Massachusettes - http://www.mass.gov/Eeoaf/docs/FY08_debt_affordability_analysis.pdf
Choose a real world industry and determine which of the four market structures this industry is most closely related to.
1. Choose a real world industry and determine which of the four market structures (perfect competition, monopolistic competition, oligopoly, or monopoly) this industry is most closely related to. Be sure to support your answer by referring to the characteristics that define each market structure. 2. Choose an occupation tha
Please see the attachment. Explain your answer briefly and clearly, showing any necessary calculations. Your answer should be in an Excel file. 2. Broomfield Company budgeted $6,000,000 of manufacturing overhead for the current year, and 50,000 hours of direct labor (cost of $60/hour). Production of Product X (100,
1.) Two supermarket chains plan to merge. An adviser has argued that the merger will bring no cost reduction because the marginal costs of both firms are similar. Is this reasoning correct? 2.) 90% of a firm's energy costs of £1m are fixed but not sunk. The variable cost of energy is £2 per unit and it is currently using 10
I need help with the following problems using the cash flow information for Project A and B. File also attached. Use the following project cash flow information for questions 23 through 27. Project A Project B Initial Investment 100,000 100,000 Year 1 40,000 10,000 Year 2 40,000 10,000 Year 3 40,000 75,000 Year 4
Two firms are ordered by the federal government to reduce their pollution levels. Firm A's marginal costs associated with pollution reduction is MC=20+4Q and firm B's MC=10+8Q. The marginal benefit of pollution reduction is MB=400-4Q. Compare the social efficiency of three possible outcomes: require all firms to reduce pollut
I NEED HELP CALCULATING A FEW FINANCIAL SCENARIOS BASED ON THE DETAILS LISTED BELOW: CAPITAL OUTLAY = $9 MILLION CAPITAL EXPENDITURE DEPRECIATES (STRAIGHT LINE) OVER A 3 YEAR LIFE 20% MARGINAL TAX RATE NET OPERATING PROFIT BEFORE TAXES & DEPRECIATION: YEAR 1 = $4,500,000 YEAR 2 = $4,500,000 YEAR 3
Medical Supplies, Inc., purchases first-aid items from large wholesalers. Medical Supplies then assembles and sells first-aid kits to businesses and contracts to maintain the first-aid kits. You have been asked to prepare a cash budget for January. The following information is provided: a. Cash in the bank on January 1 is $3
1. Define the term microeconomics. 2. Define the term macroeconomics. 3. Define the abbreviation SEC and define what it does. 4. Define the abbreviation FDIC and define what it does. 5. Define the term laissez-faire in terms of economics. 6. Define GDP and explain what it is. 7.
I need help with the reasons that healthcare costs in the U.S. is increasing and its link with litigation and medical practitioners. The statement listed below needs to be expanded on. "A big issue that divides the Democrats from the Republicans is whether it is a Gov't program vs. an Insurance program. It has to do with cos
The Menendez Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 75 percent of sales, and depreciation is expected to be $1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Menendez's federal-plus-state t
1. Buying equipment. Oriental Airlines is considering a capital expansion in which it will purchase new aircraft for its Pacific runs. Oriental is looking at the purchase of Boeing B797s, Airbus A450s and Lockheed L120s. The budget for new purchases is $750 million. Boeing B797s cost $42 million, Airbus A450s cost $30 mill
1. Selecting Projects. The Texas Electronic Company (TEC) is contemplating a research and development program encompassing eight major projects. The company is constrained from embarking on all projects by the number of available scientists (40) and the budget available for projects ($3000,000). Following are the resources
1. How much will you have in 10 years if you invest $100 a month starting today for 10 years at a rate of 7%? 2. What is the present value of $200,000 received at the end of every 6 months for the next 8 years at a discount rate of 7%? 3. How are the processes of discounting and compounding related? Explain.
The lemon juice would be produced in an unused building adjacent to Allied's Fort Myers plant; Allied owns the building, which is fully depreciated. The required equipment would cost $200,000, plus an additional $40,000 for shipping and installation. In addition, inventories would rise by $25,000, while accounts payable would go
1) Calculate the project's expected NPV, standard deviation, and coefficient of variation. 2) Breakeven analysis
1) Scenario analysis - XYZ Industries is considering a proposed project whose estimated NPV is $12 million. This estimate assumes that economic conditions will be "average." However, the CFO realizes that conditions could be better or worse, so she performed a scenario analysis and obtained these results: Economic Scenario