After reading the supplement article on Business Analytics linked to the week 1 schedule, write an essay on how business analytics impacts you today, or its potential role in your chosen career path. Do research for your paper, or interview someone who works in your area. The goals of this paper are two-fold: (1) focus on high quality writing, using the COBE Writing Styles Guide for writing help and citations. (2) consider the importance of BI from a personal/work/career perspective.

After reading the supplement article on Business Analytics linked to the week 1 schedule, write an essay on how business analytics impacts you today, or its potential role in your chosen career path. Do research for your paper, or interview someone who works in your area. The goals of this paper are two-fold: (1) focus on high quality writing, using the COBE Writing Styles Guide for writing help and citations. (2) consider the importance of BI from a personal/work/career perspective.

  Business analytics importance and its potential     Introduction … Read More...
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...