Capital Budgeting Case Virginia Sacco University of Phoenix Quantitative Reasoning for Business QRB 501 Li Guohong March 10, 2014 Capital Budgeting Case My company is contemplating to acquire another corporation, “Corporation A” or “Corporation B” on a $250,000 budget. Corporation A: Revenues = $100,000 in year one, increasing by 10% each year. Expenses = $20,000 in year one, increasing by 15% each year/ Depreciation expense = $5,000 each year. Tax rate = 25%. Discount rate = 10%.
Home-based day care: y = 20x Center-based day care: y = 400 + 10x In these scenarios y represents the total cost of the day care. X represents the number of hours of day care needed. The equation for the home-based day care is multiplying the twenty dollars an hour by the amount of hours which will represent the total cost for any given amount of hours. The second equation for the center-based day care adds the set fee of four hundred dollars plus an additional ten dollars an hour. 3.)
NBICO Case Study NBICO Case Study With a 110 years of operation NIBCO is a leading manufacturer of valves, fittings, and flow control products for commercial, industrial, and institutional constructions as well as residential and irrigations markets (NIBCO Company, 2014). Currently, the NIBCO Company operates ten plants through the United States, Mexico, and Poland with the corporate office located in Indiana (NIBCO Company, 2014). In 1997, NIBCO Company took a “Big Bang” approach to convert to SAP R/3 systems in all of the plants at once (Brown, Dehayes, Hoffer, Martin, & Perkins, 2012, p. 468). During this transformation, the company had to overcome different challenges to achieve this goal and have success for the company. The NIBCO Company went live with the implementation of the new SAP R/3 or Enterprise Resource Planning (EPR) system in December of 1997.
Abstract Regional trucking company has the opportunity to increase their business with a new customer if they have the capacity to run 120 trailers. Currently they have only 100 trailers and would need to purchase or lease an additional 20 trailers. To satisfy this requirement of the additional 20 trailers and how to structure the acquisition, a search of the FASB Codification has been done on direct financing, sales type, and operating leases. Lease Structure Issues According to FASB Codification 840-10-25-1 (Federal Accounting Standard Board, 2013), a lease is classified upon the inception of the lease as either a capital lease or an operating lease. Capital leases must meet one of the following four criteria: • Transfer of ownership must occur • A bargain price is set for the purchase of the asset at or near the end of the lease term • The terms of the lease must be for a period of time that covers 75% of the useful life of the asset •
Date: February 13, 2011 Re: Information concerning Navistar International Corporation This memo will discuss Navistar.com address, history, current shares’ price, market cap, short interest, short interest ratio, shares you can buy for $1000, and competitors. Where is Navistar International (NAV) address and web page? Navistar is located at 4201 Winfield Rd Warrenville, IL, 60555-4025 United States. You can find the web page is located at www.navistar.com. History: Navistar is one of the largest companies which produce commercial trucks and diesel engines in North America.
$9,213. c. $9,234. d. $9,324. Use the following information for questions 100 and 101. Niles Co. has the following data related to an item of inventory: Inventory, March 1 100 units @ $2.10 Purchase, March 7 350 units @ $2.20 Purchase, March 16 70 units @ $2.25 Inventory, March 31 130 units 100.
Chiffon project is designed to increase a company bottom line. And since the Chiffon project itself is a project designed to provide facilities to manufacture and distribute a new product or line; then, the minimum criteria (hurdle rate) for this project is ten year average ROFE must be greater or equal than 40%. General Foods currently employs an incremental basis method to analyze its projects. Under incremental basis, the capital spending for this project is $20 million, and it can yield ROFE around 63%. This high ROFE exceeds the hurdle rate that the company establishes to accept a project.
2. (TCO A) Garrett Manufacturing owns 10% of the common stock of Timberline Corporation and used the fair-value method to account for this investment. Timberline reported a net income of $110,000 for 20X2 and paid dividends of $50,000 on October 1, 20X2. How much income should Garrett recognize on this investment in 20X2? (Points : 5) | $50,000 $16,500 $25,500 $7,500 $5,000 | Question 3.
Yuchen Zhou Part I. Preliminary Decile Analysis (classify customers into 10 equal groups) 1. What percent of customers bought anything from the last catalog? 2.5% Bought from last catalog | | Frequency | Percent | Valid Percent | Cumulative Percent | Valid | no | 94180 | 97.5 | 97.5 | 97.5 | | yes | 2371 | 2.5 | 2.5 | 100.0 | | Total | 96551 | 100.0 | 100.0 | | 2. What was the average $ order size bought from the last catalog across all 96,551 customers?
August 2, 2011 Unit 2 – Assignment Index of Economic Freedom Kaplan University Graduate School of Business and Management GB540 Economics for Global Decision Makers Index of Economic Freedom The Index of Economic Freedom has analyzed and confirmed a strong relationship between economic freedom and prosperity in countries around the world for the past seventeen years. The index is comprised of ten specific components of economic freedom each of which is graded on a scale from 0 to 100. Each component score is equally weighted and averaged to get an overall economic freedom score for each economy (Heritage Foundation, 2011). The ten component scores consist of business freedom, trade freedom, fiscal freedom, fiscal freedom, government spending, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labor freedom. These scores are the quantitative measure of the ability to start, operate, and close a business, the absence of tariff and non-tariff barriers that affect imports and exports of goods and services, the tax burden imposed by government, the level of government expenditures as a percentage of GDP, the price stability with an assessment of price controls the amount, the freedom to invest, the banking efficiency and its independence from government control and interference in the financial sector, the assessment of the ability of individuals to accumulate private property, the various aspects of the legal and regulatory framework of a country’s labor market, and the freedom from corruption (Heritage Foundation, 2011).