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%.
C) The answers are different because if the interest is left untouched, it makes the principal amount higher each year, giving more money after 10 years. Compounded interest allows for more money that simple interest would. 2. A) If the individual retires at the age of 65, having started the program at age 40, there would be $219,318 in the account. $3,000 x (8% in 25 years) 3000 x 73.106 = $219,318 B) If
New contribution margin = $70 Break-even point in passengers = fixed costs/contribution margin Passengers = 45,000 Train cars = 715 e) Springfield Express has experienced an increase in variable cost per passenger to $ 85 and an increase in total fixed cost to $ 3,600,000. The company has decided to raise the average fare to $ 205. If the tax rate is 30 percent, how many passengers per month are needed to generate an after-tax profit of $ 750,000? Before Tax Needed Profit = $1,071,428.57 Before Tax Needed Contribution Margin = $4,671,428.57 Contribution Margin per Customer = $120 Number of Customers Needed = 38,928.57 Whole Number of Customers Needed = 38,929
How much will it cost to build a 90-foot tower? Here you can see that there is a different price for every ten feet of tower that is built. After that the cost of the labor for each succeeding 10 feet is $25 more than the preceding 10 feet. There for, the next 10 feet will cost $125, the next 10 feet will cost $150, etc. so it is asking us how much would it cost to build a 90-foot tower?
Reflection on Liebeck and Skemp Reflecting on my readings of Skemp, R. (1989) Mathematics in the Primary School, and Liebeck, P. (1990) How Children Learn Mathematics. I have reflected on the importance of Mathematics in the world around us as human beings and how it is taught within our schools. Skemp asks the question ‘Why is Mathematics still a problem subject for so many?’ One of the theories put forward is that the teaching of Maths is seen as satisfying teachers and adults by children achieving ticks for their mathematical work passing exams without fully understanding the subject. However children are achieving this through rote, a form of habitual learning. Intelligent learning is adaptable achieving the answer by way of different procedures or routes (building up knowledge) in understanding how to figure out the problem by a variety of schemas.
Here is how we think about it: It is $100 for the first 10 feet. After that it is $25 for each additional 10 feet. This tells us that it is arithmetic sequence because we are multiplying. N= the number of terms altogether N= 8 D= the common difference D=25 A1= the first term A1= 100 An= the second term An= a8 Next, we need to compute what a8 is. An= a8+ (n-1) d A8= 100+ (8-1)25 A8=100+7(25) A8=100+200 A8=300 Now that we know what A8 is, we need to know what the sum of the sequence is from A1 to A8.
Changes in the teaching of the new math curricula versus the basic teachings are getting better for some student coming up learning math especially in the K-3 school. Another Phi Delta Kappan article called “Parrot Math (Criticism of Why do teachers want to use their strategies instead of learning new ideas their student come up with? The subject of the matter comes up as teachers can also learn from student as well. While a teacher teaches one way which might be long-term for a student, the student might find a different short-term way to solve their problem or equation. This is the kind of mathematics that most parents and government officials recognize as the curricula that they attempted to learn when they were in school.
FI 515 Course Project a) The net cost of the spectrometer would include the original cost of the equipment, the modification costs and the increase in working capital due to having the equipment. Therefore, the net cost would be the $70,000 base costs, plus the $15,000 in modification costs and the $4,000 in capital, which equals $89,000. b) To find the operating cash flows for the three years, we have to find the cost savings after taxes and add the tax of depreciation. To find the cost savings, we have to take the $25,000 that is expected to be saved and reduce it based on a tax of 40%, or $25,000(1-.4), which equals $15,000. The tax on depreciation requires several steps to calculate.
In order to achieve her marketing objective, she has to allocate communication budget in such a way that it would result in 10% increase in profit over 2007 estimates. Marketing Mix Strategies: RBS had high distribution penetration. Maximum distribution was of 1 lb box. There was a 150 person sales team to manage retail and wholesale accounts. Sales-force was incentivized by a quota system with quarterly volume quotas.
These changes will add $1.00 per bottle to the variable cost of sales. Calculate the new break even given the increase in variable costs. After charging $1.00 more per bottle, the company would have to sell 1,600 bottles per day which would be 20% sales loss. 3. To reposition its water as a premium product, Healthy Spring will require an increase in its advertising and promotion budget of $900 daily.