10.2 California Imaging Center, a not-for-profit business, is evaluating the purchase of new diagnostic equipment. The equipment, which costs $600,000 has an expected life of five years and an estimated salvage value of $200,000 at that time. The equipment is expected to be used 15 times a day for 250 days a year for each year of the project’s life. On average, each procedure is expected to generate $80 in cash collections during the first year of use. Thus, net revenues for Year 1 are estimated at 15 X 250 X $80 =$300,000. Labor and maintenance costs are expected to be $100,000 during the first year of operation, while utilities will cost another $10,000 and cash overhead will increase by $5,000 in Year 1. The cost for expendable supplies is expected to average $5 per procedure during the first year. All costs and revenues are expected to increase at 5 percent inflation rate after the first year. The center’s corporate cost of capital is 10 percent. a. Estimate the project’s net cash flows over its five-year estimated life. (hint: use the following format as a guide.) Year 0 1 2 3 4 5 Equipment Cost Net revenues Less: labor/maintenance costs Utilities cost Supplies Incremental overhead Operating income Equipment salvage value Net cash flow b. What are the project’s NPV and IRR? (Assume for now that the project has average risk.) c. Assume the project is assessed to have high risk and California Imaging Center adds or subtracts 3 percentage points to adjust for project risk. Now, what is the project’s NPV? Does the risk assessment change how the project’s IRR is interpreted?

10.2 California Imaging Center, a not-for-profit business, is evaluating the purchase of new diagnostic equipment. The equipment, which costs $600,000 has an expected life of five years and an estimated salvage value of $200,000 at that time. The equipment is expected to be used 15 times a day for 250 days a year for each year of the project’s life. On average, each procedure is expected to generate $80 in cash collections during the first year of use. Thus, net revenues for Year 1 are estimated at 15 X 250 X $80 =$300,000. Labor and maintenance costs are expected to be $100,000 during the first year of operation, while utilities will cost another $10,000 and cash overhead will increase by $5,000 in Year 1. The cost for expendable supplies is expected to average $5 per procedure during the first year. All costs and revenues are expected to increase at 5 percent inflation rate after the first year. The center’s corporate cost of capital is 10 percent. a. Estimate the project’s net cash flows over its five-year estimated life. (hint: use the following format as a guide.) Year 0 1 2 3 4 5 Equipment Cost Net revenues Less: labor/maintenance costs Utilities cost Supplies Incremental overhead Operating income Equipment salvage value Net cash flow b. What are the project’s NPV and IRR? (Assume for now that the project has average risk.) c. Assume the project is assessed to have high risk and California Imaging Center adds or subtracts 3 percentage points to adjust for project risk. Now, what is the project’s NPV? Does the risk assessment change how the project’s IRR is interpreted?

info@checkyourstudy.cominfo@checkyourstudy.com 10.2 California Imaging Center, a not-for-profit business, is evaluating … Read More...
5. Which of the following statements is CORRECT? a. If Firms X and Y have the same P/E ratios, then their market-to-book ratios must also be equal. b. If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their P/E ratios must also be the same. c. If Firms X and Y have the same earnings per share and market-to-book ratio, they must have the same price/earnings ratio. d. If Firm X’s P/E ratio exceeds that of Firm Y, then Y is likely to be less risky and/or be expected to grow at a faster rate. e. If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their market-to-book ratios must also be the same.

5. Which of the following statements is CORRECT? a. If Firms X and Y have the same P/E ratios, then their market-to-book ratios must also be equal. b. If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their P/E ratios must also be the same. c. If Firms X and Y have the same earnings per share and market-to-book ratio, they must have the same price/earnings ratio. d. If Firm X’s P/E ratio exceeds that of Firm Y, then Y is likely to be less risky and/or be expected to grow at a faster rate. e. If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their market-to-book ratios must also be the same.

Answer: b No reason for a to be true. b … Read More...
Berkeley College International Economics Quiz 1 Student name: Class & Session (Type all your answers in the parenthesis) Multiple Choice Questions (75 points) 1. The person credited with the first systematic expression of the principle of comparative advantage was ( ) A. Alan Greenspan. B. John Maynard Keynes. C. David Ricardo. D. Adam Smith. 2. A regulation that sets the highest price at which it is legal to trade a good is a ( ) A. Production quota B. Price floor C. Price ceiling D. Tax ceiling 3. In Country J, it takes one hour to knit a pair of socks, and five hours to brew a gallon of cider. In Country K, it takes three hours to knit a pair of socks, and six hours to brew a gallon of cider. If trade were to open between the two countries, Ricardo would predict that ( ) A. Country J will export cider and Country K will export socks. B. Country J will export socks and Country K will export cider. C. Country J will export both socks and cider. D. Country K will export both socks and cider. 4. If Nation A can produce either 3x or 3y with one hour of labor, while nation B can produce either 1x or 1y with one hour of labor, and if labor is the only input, then ( ) A. Nation A has an absolute advantage in both goods. B. Nation B has an absolute advantage in both goods. C. Nation A has a comparative disadvantage in both goods. D. Nation A has a comparative advantage in both goods. 5. Mutually beneficial trade A. Allows both countries to consume a larger bundle of goods than before trade occurred.( ) B. Allows only the more productive country to consume a larger bundle of goods than before trade occurred. C. Allows only the less productive country to consume a larger bundle of goods than before trade occurred. D. Causes changes only in production, not consumption. 6. In the absence of trade, the consumption points available to a nation ( ) A. Are above the production possibility curve. B. Are on or inside the production possibility curve. C. Lie on the production possibility curve. D. Cannot be identified. 7. For Heckscher-Ohlin, the most important cause of the differences in relative commodity prices is the difference between countries in ( ) A. Factor endowments. B. National income. C. Technology. D. Tastes. 8. Country J has 1 million machines and 1 million workers, while country K has 2 million machines and 3 million workers. If computers are produced mostly by capital and beer is produced mostly by labor, the H-O model predicts that ( ) A. Country K will export computers in exchange for beer. B. Country J will export computers in exchange for beer. C. Country J is too small to be of economic interest to Country K. D. Computers and beer don’t mix, so trade cannot increase either country’s well-being. 9. Mexico is an unskilled labor abundant country, while the United States is a skilled labor abundant country. With the opening of trade, you would expect that, in the long run, wages for unskilled workers ( ) A. Decline in both countries. B. Decline in the United States and rise in Mexico. C. Rise in the United States and decline in Mexico. D. Rise in both countries 10. According to trade theory, if a nation has a comparative advantage in a capital-intensively produced good, and the rate of growth of capital is greater than the rate of growth of other inputs (e.g., labor), the pattern of growth which results will be ( ) A. Import replacing. B. Neutral as between capital intensive and other products. C. Export expanding. D. None of the above. 11. Arguments in favor of having developing countries focus on exporting manufactured goods include ( ) A. Strong support in industrialized countries for free trade in manufactured goods. B. Very low tariffs on manufactured textiles, apparel, and footwear in industrialized countries. C. Political preference for VERs among importing countries. D. A downward trend in the prices of primary products. 12. Which group definitely loses from international migration of labor? ( ) A. The migrants. B. The migrants’ new employers in the receiving country. C. The migrants’ old employers in the sending country. D. The migrants’ fellow workers who did not emigrate. 13. As technology advances, ( ) A. All opportunity cost decreases B. The PPF shift outward C. A country moves toward the midpoint along its PPF D. The PPF shift inward because unemployment occurs 14. If a country is operating at a point of production efficiency ( ) A. It enjoys growth when increasing production B. It produces on its production possibility frontier curve C. It must specialize in the production of a good D. It operates on its trade line 15. A cartel is ( ) A. Another name for a firm in an oligopoly B. A collusive agreement among a number of firms C. A government body that regulates an industry D. An antitrust law (Type and show your work) Practicum Question (25 points) Two countries, Haiti and the Dominican Republic, produce fruits and timber. Each island has a labor force of 1200 and the monthly productivity of each worker is as follow Basket of fruit Board feet of timber Haiti 10 5 Dominican Republic 30 10 a. Which county has an absolute advantage in the production of fruit? Timber? b. Which country has a comparative advantage in the production of fruit? Timber? c. Sketch the production possibility frontier (PPF) of both countries d. Both countries want to produce an equal amount of baskets of fruit and feet of timber. How should they allocate their workers to the two sectors? e. How can free trade move both countries beyond their respective PPF Extra credits (10 points) The demand and supply curves of the market for DVD at the local (US) market are as follow: P = 30 – Qd/2 and P= -1.5 + Qs/4 a. Find the equilibrium price and the equilibrium quantity when there is no international trade ( hint: solve for Qd and Qs And then make Qd=Qs to solve for Price and quantities) b. What are the equilibrium quantities when the nations trade freely at price of $15? Explain your rationale. c. How many units are exported? d. What is the resulting national gain? e. Do consumers and producers gain or lose from the free trade?

Berkeley College International Economics Quiz 1 Student name: Class & Session (Type all your answers in the parenthesis) Multiple Choice Questions (75 points) 1. The person credited with the first systematic expression of the principle of comparative advantage was ( ) A. Alan Greenspan. B. John Maynard Keynes. C. David Ricardo. D. Adam Smith. 2. A regulation that sets the highest price at which it is legal to trade a good is a ( ) A. Production quota B. Price floor C. Price ceiling D. Tax ceiling 3. In Country J, it takes one hour to knit a pair of socks, and five hours to brew a gallon of cider. In Country K, it takes three hours to knit a pair of socks, and six hours to brew a gallon of cider. If trade were to open between the two countries, Ricardo would predict that ( ) A. Country J will export cider and Country K will export socks. B. Country J will export socks and Country K will export cider. C. Country J will export both socks and cider. D. Country K will export both socks and cider. 4. If Nation A can produce either 3x or 3y with one hour of labor, while nation B can produce either 1x or 1y with one hour of labor, and if labor is the only input, then ( ) A. Nation A has an absolute advantage in both goods. B. Nation B has an absolute advantage in both goods. C. Nation A has a comparative disadvantage in both goods. D. Nation A has a comparative advantage in both goods. 5. Mutually beneficial trade A. Allows both countries to consume a larger bundle of goods than before trade occurred.( ) B. Allows only the more productive country to consume a larger bundle of goods than before trade occurred. C. Allows only the less productive country to consume a larger bundle of goods than before trade occurred. D. Causes changes only in production, not consumption. 6. In the absence of trade, the consumption points available to a nation ( ) A. Are above the production possibility curve. B. Are on or inside the production possibility curve. C. Lie on the production possibility curve. D. Cannot be identified. 7. For Heckscher-Ohlin, the most important cause of the differences in relative commodity prices is the difference between countries in ( ) A. Factor endowments. B. National income. C. Technology. D. Tastes. 8. Country J has 1 million machines and 1 million workers, while country K has 2 million machines and 3 million workers. If computers are produced mostly by capital and beer is produced mostly by labor, the H-O model predicts that ( ) A. Country K will export computers in exchange for beer. B. Country J will export computers in exchange for beer. C. Country J is too small to be of economic interest to Country K. D. Computers and beer don’t mix, so trade cannot increase either country’s well-being. 9. Mexico is an unskilled labor abundant country, while the United States is a skilled labor abundant country. With the opening of trade, you would expect that, in the long run, wages for unskilled workers ( ) A. Decline in both countries. B. Decline in the United States and rise in Mexico. C. Rise in the United States and decline in Mexico. D. Rise in both countries 10. According to trade theory, if a nation has a comparative advantage in a capital-intensively produced good, and the rate of growth of capital is greater than the rate of growth of other inputs (e.g., labor), the pattern of growth which results will be ( ) A. Import replacing. B. Neutral as between capital intensive and other products. C. Export expanding. D. None of the above. 11. Arguments in favor of having developing countries focus on exporting manufactured goods include ( ) A. Strong support in industrialized countries for free trade in manufactured goods. B. Very low tariffs on manufactured textiles, apparel, and footwear in industrialized countries. C. Political preference for VERs among importing countries. D. A downward trend in the prices of primary products. 12. Which group definitely loses from international migration of labor? ( ) A. The migrants. B. The migrants’ new employers in the receiving country. C. The migrants’ old employers in the sending country. D. The migrants’ fellow workers who did not emigrate. 13. As technology advances, ( ) A. All opportunity cost decreases B. The PPF shift outward C. A country moves toward the midpoint along its PPF D. The PPF shift inward because unemployment occurs 14. If a country is operating at a point of production efficiency ( ) A. It enjoys growth when increasing production B. It produces on its production possibility frontier curve C. It must specialize in the production of a good D. It operates on its trade line 15. A cartel is ( ) A. Another name for a firm in an oligopoly B. A collusive agreement among a number of firms C. A government body that regulates an industry D. An antitrust law (Type and show your work) Practicum Question (25 points) Two countries, Haiti and the Dominican Republic, produce fruits and timber. Each island has a labor force of 1200 and the monthly productivity of each worker is as follow Basket of fruit Board feet of timber Haiti 10 5 Dominican Republic 30 10 a. Which county has an absolute advantage in the production of fruit? Timber? b. Which country has a comparative advantage in the production of fruit? Timber? c. Sketch the production possibility frontier (PPF) of both countries d. Both countries want to produce an equal amount of baskets of fruit and feet of timber. How should they allocate their workers to the two sectors? e. How can free trade move both countries beyond their respective PPF Extra credits (10 points) The demand and supply curves of the market for DVD at the local (US) market are as follow: P = 30 – Qd/2 and P= -1.5 + Qs/4 a. Find the equilibrium price and the equilibrium quantity when there is no international trade ( hint: solve for Qd and Qs And then make Qd=Qs to solve for Price and quantities) b. What are the equilibrium quantities when the nations trade freely at price of $15? Explain your rationale. c. How many units are exported? d. What is the resulting national gain? e. Do consumers and producers gain or lose from the free trade?

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12. Which of the following statements is CORRECT? a. The income of certain small corporations that qualify under the Tax Code is completely exempt from corporate income taxes. Thus, the federal government receives no tax revenue from these businesses, even though they report high accounting profits. b. All businesses, regardless of their legal form of organization, are taxed under the Business Tax Provisions of the Internal Revenue Code. c. Small corporations that qualify under the Tax Code can elect not to pay corporate taxes, but then each stockholder must report his or her pro rata shares of the firm’s income as personal income and pay taxes on that income. d. Congress recently changed the tax laws to make dividend income received by individuals exempt from income taxes. Prior to the enactment of that law, corporate income was subject to double taxation, where the firm was first taxed on the corporation’s income and stockholders were taxed again on this income when it was paid to them as dividends. e. All corporations other than non-profits are subject to corporate income taxes, which are 15% for the lowest amounts of income and 38% for the highest amounts.

12. Which of the following statements is CORRECT? a. The income of certain small corporations that qualify under the Tax Code is completely exempt from corporate income taxes. Thus, the federal government receives no tax revenue from these businesses, even though they report high accounting profits. b. All businesses, regardless of their legal form of organization, are taxed under the Business Tax Provisions of the Internal Revenue Code. c. Small corporations that qualify under the Tax Code can elect not to pay corporate taxes, but then each stockholder must report his or her pro rata shares of the firm’s income as personal income and pay taxes on that income. d. Congress recently changed the tax laws to make dividend income received by individuals exempt from income taxes. Prior to the enactment of that law, corporate income was subject to double taxation, where the firm was first taxed on the corporation’s income and stockholders were taxed again on this income when it was paid to them as dividends. e. All corporations other than non-profits are subject to corporate income taxes, which are 15% for the lowest amounts of income and 38% for the highest amounts.

Answer: c 12.    Which of the following statements is CORRECT?  … Read More...
21. Last year Jandik Corp. had $295,000 of assets, $18,750 of net income, and a debt-to-total-assets ratio of 37%. Now suppose the new CFO convinces the president to increase the debt ratio to 48%. Sales and total assets will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE? a. 2.13% b. 2.35% c. 2.58% d. 2.84% e. 3.12%

21. Last year Jandik Corp. had $295,000 of assets, $18,750 of net income, and a debt-to-total-assets ratio of 37%. Now suppose the new CFO convinces the president to increase the debt ratio to 48%. Sales and total assets will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE? a. 2.13% b. 2.35% c. 2.58% d. 2.84% e. 3.12%

Answer: a Assets                                                                                                                   $295,000 Old debt ratio                                                                                                               37% Old debt … Read More...
On 12/31/08, Hite Industries reported retained earnings of $525,000 on its balance sheet, and it reported that it had $135,000 of net income during the year. On its previous balance sheet, at 12/31/07, the company had reported $445,000 of retained earnings. No shares were repurchased during 2008. How much in dividends did the firm pay during 2008? $49,638 $52,250 $55,000 $57,750 $60,638

On 12/31/08, Hite Industries reported retained earnings of $525,000 on its balance sheet, and it reported that it had $135,000 of net income during the year. On its previous balance sheet, at 12/31/07, the company had reported $445,000 of retained earnings. No shares were repurchased during 2008. How much in dividends did the firm pay during 2008? $49,638 $52,250 $55,000 $57,750 $60,638

On 12/31/08, Hite Industries reported retained earnings of $525,000 on … Read More...
Individual case study Due date: 1:00pm AEST, Thursday, Week 11 All students are to submit electronically – max file size is 2Mb. ASSESSMENT Weighting: 35% Length: No set length 2 I…Assignment 2 SPECIFICATIONS CIS8011_Digital Innovation Assignment 2 (30%) (1500 words maximum) This assignment continues from the first assignment and your task is to write a report on the following a…1 CSE2DES/CSE5DES – Assignment 1 Due Date: 10 am Monday 22nd September 2014 Assessment: This assignment 1 is worth 15% of the final mark for CSE2DES/CSE5DES. This is an individual assignment. Copying,…All questions are from the textbook: Fatseas, Victor & Williams, John, Cost Management (2013) 3rd edition, McGraw HillMLC 703: PRINCIPLES OF INCOME TAX LAW INSTRUCTIONS Please note that the following will not form part of the word count: ? References, including statute and cases; ? Diagrams; ? Tables; ? Calculations….WRITTEN ESSAY Outline This assessment has been written to develop your understanding of Human Resource Management, assessing learning outcomes a, b, c, h and i: “The external environmental (e.g. econo…Subject: INTERNATIONAL MARKETING B01ITMK208 Assessment item 2: International Marketing Analysis Weighting: 30% Due: Week 10. A daily penalty of 5% will be applied to late assignments. Task: You are a …B01ITMK208 INTERNATIONAL MANAGEMENT ASSIGNMENT INSTRUCTIONS KEY INFORMATION Maximum Length: 2500 words Due: Week 8. Note that late submission will attract a penalty. Weighting: 30% Instructions: Read …Subject: Advertising Management BO1ADMG207 Assessment item 2: IMC Report Weighting: 30% Due: Week 8. A daily penalty of 5% will be applied to late assignments. Task: You are the Australian-based Marke…Attached are two Memos, please have a lookgetEconomics topic Assignment 2 Value: 40% Due date: 01-Sep-2014 Return date: 22-Sep-2014 Length: about 1500-2000 words each Submission method options Alternative submission method Task Analytical essays…Accounting for Business Decisions –HI5001 Trimester 2 2014 The assignment allows students to exhibit their knowledge and understanding of the subject matter of Accounting. The students will use the sk…HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6007 SPSS Assignment 02 Due Friday 4pm week 11 WORTH 30% The data set you need to do the assignment can be found on Blackboard in the folder “Assignments…Assignmnet of Economic Assignment (Written report): 25% 1. Organize yourselves into groups. Each group is to have Four or Five members. 2. Groups need to choose a topic from the list of topics provide…2. Rio Tinto Annual Report Financial Analysis [10 marks] Consider the sources below and answer the following questions. Source 1: Rio Tinto Annual Report 2012 (see report uploaded on the portal) Sourc…Quantitative Methods for Business Business Statistics Assignment – Semester, 2 2014 Total Marks: 60, Worth: 20% of final assessment This assignment requires a considerable amount of computer work and …BUACC 2613 Management Accounting 1 Semester 2, 2014 Assignment Contribution to overall assessment: 25% Due date: 26/09/2014 • This assignment has two parts: o Part 1

Individual case study Due date: 1:00pm AEST, Thursday, Week 11 All students are to submit electronically – max file size is 2Mb. ASSESSMENT Weighting: 35% Length: No set length 2 I…Assignment 2 SPECIFICATIONS CIS8011_Digital Innovation Assignment 2 (30%) (1500 words maximum) This assignment continues from the first assignment and your task is to write a report on the following a…1 CSE2DES/CSE5DES – Assignment 1 Due Date: 10 am Monday 22nd September 2014 Assessment: This assignment 1 is worth 15% of the final mark for CSE2DES/CSE5DES. This is an individual assignment. Copying,…All questions are from the textbook: Fatseas, Victor & Williams, John, Cost Management (2013) 3rd edition, McGraw HillMLC 703: PRINCIPLES OF INCOME TAX LAW INSTRUCTIONS Please note that the following will not form part of the word count: ? References, including statute and cases; ? Diagrams; ? Tables; ? Calculations….WRITTEN ESSAY Outline This assessment has been written to develop your understanding of Human Resource Management, assessing learning outcomes a, b, c, h and i: “The external environmental (e.g. econo…Subject: INTERNATIONAL MARKETING B01ITMK208 Assessment item 2: International Marketing Analysis Weighting: 30% Due: Week 10. A daily penalty of 5% will be applied to late assignments. Task: You are a …B01ITMK208 INTERNATIONAL MANAGEMENT ASSIGNMENT INSTRUCTIONS KEY INFORMATION Maximum Length: 2500 words Due: Week 8. Note that late submission will attract a penalty. Weighting: 30% Instructions: Read …Subject: Advertising Management BO1ADMG207 Assessment item 2: IMC Report Weighting: 30% Due: Week 8. A daily penalty of 5% will be applied to late assignments. Task: You are the Australian-based Marke…Attached are two Memos, please have a lookgetEconomics topic Assignment 2 Value: 40% Due date: 01-Sep-2014 Return date: 22-Sep-2014 Length: about 1500-2000 words each Submission method options Alternative submission method Task Analytical essays…Accounting for Business Decisions –HI5001 Trimester 2 2014 The assignment allows students to exhibit their knowledge and understanding of the subject matter of Accounting. The students will use the sk…HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6007 SPSS Assignment 02 Due Friday 4pm week 11 WORTH 30% The data set you need to do the assignment can be found on Blackboard in the folder “Assignments…Assignmnet of Economic Assignment (Written report): 25% 1. Organize yourselves into groups. Each group is to have Four or Five members. 2. Groups need to choose a topic from the list of topics provide…2. Rio Tinto Annual Report Financial Analysis [10 marks] Consider the sources below and answer the following questions. Source 1: Rio Tinto Annual Report 2012 (see report uploaded on the portal) Sourc…Quantitative Methods for Business Business Statistics Assignment – Semester, 2 2014 Total Marks: 60, Worth: 20% of final assessment This assignment requires a considerable amount of computer work and …BUACC 2613 Management Accounting 1 Semester 2, 2014 Assignment Contribution to overall assessment: 25% Due date: 26/09/2014 • This assignment has two parts: o Part 1

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