1. The different capacities of Mudarib are as follows:- Trustee: Mudarib acts as a trustee for the capital invested by the Rab ul Mal (the silent partner) and is responsible for managing the investment on their behalf.
- Partner: Mudarib is considered a partner in the Mudarabah contract and shares in the profits based on the agreed profit-sharing ratio.- Liable: Mudarib is liable for any losses incurred during the investment, except in cases of negligence or misconduct.
- Employee: Mudarib can also be considered an employee if they receive a fixed salary or a predetermined share of profits.
As a trustee, Mudarib holds the responsibility to manage the invested capital.
Mudarib is entitled to a share of profits. Mudarib is liable for losses except in cases of negligence. In certain cases, Mudarib can also be treated as an employee.
2. A. In the given scenario, Partner A is the Mudarib, as they are the active manager of the investment. Partner B is the Rab ul Mal, as they provided the capital investment.
B. This transaction is Sharia compliant as it follows the principles of Mudarabah, a form of partnership in Islamic finance. The profit and loss sharing ratio of 70:30 is agreed upon by both parties.
C. Partner A cannot terminate the contract on their own, as Mudarabah contracts require mutual consent for termination unless there is a specific provision in the contract allowing unilateral termination.
D. Profit and Loss Sharing (PLS) between the two partners will be as follows:
- Profit: BD 15,000 - BD 1,000 (admin expenses) = BD 14,000- Partner A's share: 70% of BD 14,000 = BD 9,800
- Partner B's share: 30% of BD 14,000 = BD 4,200
Partner A is the Mudarib and receives 70% of the profits. Partner B (Rab ul Mal) receives 30% of the profits. After deducting the admin expenses, the total profit is calculated, and the distribution is based on the agreed profit-sharing ratio.
Note: The provided length exceeds the initial 30-word limit.
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Both Bond A and Bond B have 8 percent coupons and are priced at par value. Bond A has 5 years to maturity, while Bond B has 18 years to maturity.
a. If interest rates suddenly rise by 2.4 percent, what is the percentage change in price of Bond A and Bond B? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
b. If interest rates suddenly fall by 2.4 percent instead, what would be the percentage change in price of Bond A and Bond B? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
There is a 10.30% fall in the price of Bond A.
For Bond A:
Percentage change in price
The formula for the percentage change in bond price for Bond A is as follows:
Percentage change in the price of Bond A= Bond A's modified duration × Change in yield for Bond A = -4.283 × 0.024 = -0.103 (rounded to 3 decimal places)
For Bond A:
Percentage change in price
The formula for percentage change in bond price for Bond A is as follows:
Percentage change in price of Bond A= Bond A's modified duration × Change in yield for Bond A = 4.283 × 0.024 = 0.103 (rounded to 3 decimal places)
Therefore, there is a 10.30% increase in price of Bond A.
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One of the goals of the Control phase is to: a. Maintain the gains you have made by standardising work processes b. Identify root causes and confirm them with data c. Define the project’s purpose and scope d. Gather information about the current situation
a. Maintain the gains you have made by standardizing work processes.
The Control phase in project management aims to sustain the improvements achieved during the project by establishing control mechanisms and standardizing work processes.
involves monitoring the project's performance, tracking key metrics, and implementing ive actions to ensure that the desired outcomes are maintained over time. By maintaining the gains, the project's benefits can be sustained and the organization can continue to operate efficiently and effectively.
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Sarah borrows $22,397 from the bank at 3.87 percent per year, compounded annually, to purchase new car. This loan is to be repaid in equal annual installments at the end of each year over the next 10 years. How much will each annual payment be?
The each annual payment will be $2,738.63. The given problem can be solved by using the formula for the present value of an annuity.
An annuity is a financial product that provides a fixed sum of money paid regularly over a specified period. Annuities are classified as fixed or variable, depending on their payment frequency and structure. The sum may be paid annually, semi-annually, quarterly, or monthly. They are a form of investment and are primarily used for retirement purposes. The formula for the present value of an annuity is given by:
PVA = A * [(1 - (1 + r)-n) / r]
Where:
PVA = Present value of an annuity
A = The amount of each payment
r = The interest rate per period
n = The number of periods
The given details are as follows:
P = $22,397r
= 3.87%
= 0.0387n
= 10 years
Using the formula for the present value of an annuity, we can find the amount of each payment:
A = (P * r) / [1 - (1 + r)-n]
Substituting the values of the given data we get,
A = (22397 × 0.0387) / [1 - (1 + 0.0387)-10]
= $2,738.63
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than the private equilibrium price, and the social When there are negative externalities, the social equilibrium price is than the private equilibrium quantity. [8.1.2 Social Equilibrium: When Marginal Social Costs Equal equilibrium quantity is Marginal Social Benefits] more; less (B) less; less more; more less; more Question 16 Peter lives in a city of about 50,000 people. Many negative externalities affect him. Which of the following is NOT an example of a negative externality? [8.1.1 Externalities] a person using deodorant a factory dumping chemical pollutants into the river enduring the sound of music you can't stand from a venue down the road a person smoking a cigarette
The answer to the question "than the private equilibrium price, and the social equilibrium quantity is (B) less; less" is: less; less.
When there are negative externalities, the social equilibrium price is lower than the private equilibrium price, and the social equilibrium quantity is also lower than the private equilibrium quantity.
Negative externalities refer to the costs imposed on society that are not accounted for by the market participants. These costs are external to the transaction and affect individuals or the environment without compensation.
In the case of negative externalities, such as pollution from a factory or enduring unpleasant noise from a nearby venue, the private equilibrium price and quantity do not fully reflect the social costs imposed on society. The market fails to consider these costs, leading to an inefficient allocation of resources.
The social equilibrium price is lower than the private equilibrium price because it accounts for the external costs. By reducing the price, the aim is to discourage excessive consumption and incentivize individuals and firms to internalize the negative effects they impose on society.
Similarly, the social equilibrium quantity is lower than the private equilibrium quantity. This reduction in quantity helps mitigate the negative externalities by limiting the overall level of activity that generates the external costs.
It promotes a more socially optimal allocation of resources and a reduction in the negative impacts on individuals and the environment.
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discuss about sourcing and procurement startegy on material
management and supplier relations of ford automobile
Ford Motor Company utilizes sourcing and procurement strategies to manage materials and supplier relations effectively. These strategies involve optimizing the supply chain, developing strategic supplier partnerships, implementing cost-saving initiatives, and ensuring quality and sustainability in the procurement process.
Ford's material management and supplier relations strategy encompasses various aspects. Firstly, Ford focuses on optimizing its supply chain by strategically sourcing materials to meet production demands efficiently. This involves identifying reliable suppliers, negotiating favorable contracts, and implementing supply chain management techniques to streamline the flow of materials.
Secondly, Ford emphasizes the development of strategic supplier partnerships. By cultivating long-term relationships with key suppliers, Ford can collaborate closely on product development, cost reduction, and innovation. These partnerships enable Ford to gain a competitive edge by leveraging the expertise and capabilities of its suppliers.
In terms of procurement, Ford implements cost-saving initiatives such as global sourcing and supply base consolidation. By sourcing materials globally, Ford can access a wider range of suppliers and potentially lower costs. Additionally, consolidating the supply base helps in achieving economies of scale, improving efficiency, and reducing supplier complexity.
Quality and sustainability are also essential factors in Ford's material management and procurement strategy. Ford ensures that its suppliers meet strict quality standards and comply with regulations. Moreover, Ford promotes sustainable practices throughout the supply chain, such as responsible sourcing of raw materials and implementing environmental initiatives.
Overall, Ford's sourcing and procurement strategy on material management and supplier relations focuses on optimizing the supply chain, developing strategic supplier partnerships, implementing cost-saving measures, and ensuring quality and sustainability. These efforts contribute to enhancing Ford's competitiveness, efficiency, and overall performance in the automobile industry.
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Discuss one component needed to make an effective mission
statement
One essential component needed to make an effective mission statement is clarity.
A clear mission statement clearly communicates the purpose, direction, and primary objectives of the organization. It should provide a concise and straightforward description of what the organization does, who it serves, and how it creates value.
Clarity in a mission statement ensures that all stakeholders, including employees, customers, investors, and the public, can easily understand and relate to the organization's purpose. It helps align everyone's efforts and provides a clear sense of direction, guiding decision-making and actions.
To achieve clarity in a mission statement, it is important to use simple and concise language, avoiding jargon or complex terminology. The statement should be specific, avoiding vague or ambiguous phrases that can lead to different interpretations. It should focus on the unique aspects of the organization, highlighting its core competencies and what sets it apart from competitors.
Additionally, a clear mission statement should be measurable, providing a basis for evaluating the organization's progress and success in achieving its stated objectives. This allows for accountability and helps in defining strategies and actions that align with the mission.
Overall, a clear mission statement serves as a guiding compass for the organization, providing a sense of purpose and direction for all stakeholders. It helps create a shared understanding and commitment, facilitating unity and focus towards achieving the organization's goals.
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If an entity has commercial investment property income, is it
necessary to obtain an ABN and register for GST? Give reasons for
your answer.
Yes, if an entity has commercial investment property income, it is considered as taxable income.
Commercial investment property income refers to the income earned from renting out commercial properties, such as office buildings, retail spaces, or warehouses. This income is subject to taxation, and the entity that owns the property is required to report it on their tax return.
The entity will need to calculate the net income from the rental property, which is the total income received from tenants minus any deductible expenses, such as property taxes, maintenance costs, and mortgage interest. The net income is then taxed at the applicable tax rate. It is important for entities to accurately report their commercial investment property income to ensure compliance with tax laws and avoid any penalties or audits.
An investment in a for-profit business that buys or sells goods and services with the intention of earning money is known as a commercial investment. This kind of investment can be taken on by an individual, group, or organization.
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Identify the sentences that are punctuated correctly. Check all that apply. Dudley is, in fact sitting in the wrong seat. Your vacuum cleaner, it would seem, is broken. To tell the truth I can’t, tell the difference between Rafe and his brother. Video games, it seems to me, are a waste of time.
The sentences that are punctuated ly are: 1. Dudley is, in fact, sitting in the wrong seat.,n 4. Video seems to me, are a waste of time.
here some more information:
1. "Dudley is, in fact, sitting in the wrong seat." - This sentence uses a pair of commas to set off the phrase "in fact" as additional information. The commas ly separate this non-essential phrase from the rest of the sentence.
4. "Video games, it seems to me, are a waste of time." - This sentence uses a pair of commas to set off the phrase "it seems to me" as an interrupter. The commas indicate a pause in the sentence and separate the interrupter from the main clause.
The other two sentences have punctuation errors:
2. "Your vacuum cleaner, it would seem, is broken." - This sentence inly uses a comma after "cleaner" and before "it would seem." The phrase "it would seem" should not be set off by commas as it is an integral part of the sentence.
3. "To tell the truth, I can’t, tell the difference between Rafe and his brother." - This sentence has in comma usage. The comma after "truth" is unnecessary, and the comma after "can't" is inly placed. The sentence should read: "To tell the truth, I can't tell the difference between Rafe and his brother."
Correct punctuation helps convey the intended meaning of a sentence and ensures clarity in communication.
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Consider the following regression on 110 college students: Estimated(Studenth) = 19.6 + 0.73(Midparh) , R2 = 0.45, SER = 2.0 Standard errors are as hereunder: SE(intercept) = (7.2) SE(Midparh) = (0.10) (Values in parentheses are heteroskedasticity-robust standard errors). where "Studenth" is the height of students in inches, and "Midparh" is the average of the parental heights.
(a) Using a t-test approach and 5% level of significance, test if slope coefficient can be positive. Make sure you write both hypothesis claims properly.
(b) If children, on average, were expected to be of the same height as their parents, then this would imply that the coefficient of intercept becomes zero and the coefficient of slope will be 1:
(i) Test if the coefficient of intercept is zero at 1% level of significance.
(ii) Test if the slope coefficient is 1 at 5% level of significance. (Note: the statistical table is attached hereto)
(c) Repeat part (B)-(i) using the p-value approach.
(d) Repeat part (B)-(ii) using the p-value approach.
a) Let's conduct the t-test for slope coefficient using the given data.The null hypothesis is H0: β1 = 0. This implies that the slope coefficient is equal to zero against the alternative hypothesis that Ha: β1 ≠ 0. This implies that the slope coefficient is not equal to zero.
Let's calculate the t-statistic given by:t = β1 / SE(β1)So, t = 0.73 / 0.10 = 7.30.At 5% level of significance, the critical value of t with 108 degrees of freedom is 1.66.Therefore, the test statistic value 7.30 is greater than 1.66. Hence, we reject the null hypothesis and conclude that the slope coefficient can be positive. Therefore, the regression slope is not zero.b) We are given the regression equation as:Estimated(Studenth) = 19.6 + 0.73(Midparh)Let's conduct hypothesis tests to test the claim that if children, on average, were expected to be of the same height as their parents, then this would imply that the coefficient of intercept becomes zero and the coefficient of slope will be 1.i) Test if the coefficient of intercept is zero at 1% level of significance.The null hypothesis is H0: β0 = 0 against the alternative hypothesis that Ha: β0 ≠ 0.Let's calculate the t-statistic given by:t = β0 / SE(β0)So, t = 19.6 / 7.2 = 2.72.At 1% level of significance, the critical value of t with 108 degrees of freedom is 2.64.Therefore, the test statistic value 2.72 is greater than 2.64. Hence, we reject the null hypothesis and conclude that the intercept is not zero.
ii) Test if the slope coefficient is 1 at 5% level of significance.The null hypothesis is H0: β1 = 1 against the alternative hypothesis that Ha: β1 ≠ 1.Let's calculate the t-statistic given by:t = (β1 - 1) / SE(β1)So, t = (0.73 - 1) / 0.10 = -2.7.At 5% level of significance, the critical value of t with 108 degrees of freedom is 1.66.Therefore, the test statistic value -2.7 is less than -1.66. Hence, we reject the null hypothesis and conclude that the slope coefficient is not equal to 1.c) We can also solve part (B)-(i) using the p-value approach. The p-value for the given test is less than 0.01. Since the p-value is less than the significance level, we reject the null hypothesis and conclude that the intercept is not zero.d) We can also solve part (B)-(ii) using the p-value approach. The p-value for the given test is less than 0.05. Since the p-value is less than the significance level, we reject the null hypothesis and conclude that the slope coefficient is not equal to 1.
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The current spot exchange rate is $1.65 €1.00 and the three-month forward rate is $1.50 €1.00. Consider a three-month American put option on €62,500 with a strike price of $1.65 €1.00. If you pay an option premium of $5,000 to buy this put, at what exchange rate will you break-even?
$1.57 €1.00
$1.47 €1.00
$51.65 €1.00 w
$1.42 €1.00
The solution to the problem is as follows:An American put option gives the holder the right to sell the currency at the strike price.
American put optionPrice of the option = $5,000Strike price = $1.65 €1.00Maturity of option = 3 months = 0.25 yearsSpot exchange rate = $1.65 €1.00Forward rate = $1.50 €1.00
Size of the option contract = €62,500 i.e. $1,03,125Put premium cost = Price of the option/ Size of the option contract= $5,000/$1,03,125= 0.0484 per euroShare of dollar investment = 1.65/ (1+0.06/4)= $1.5748/€
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What is the most we should pay for a bond with a par value of $1000, coupon rate of 8.7% paid annually, and a remaining life of 9 years? The yield to maturity is 7.4%. Assume annual discounting.
The most that should be paid for the bond is $1,101.80 found using the PV of Bond.
To calculate the most that should be paid for a bond with a par value of $1000, a coupon rate of 8.7% paid annually and a remaining life of 9 years at a yield to maturity of 7.4%, the formula used is as follows:
PV of Bond = Coupon Payment * (1 - 1/(1 + r)^n)/r + Par Value/(1 + r)^n
Where, r = Yield to maturity
n = Number of years
Coupon Payment = (Coupon rate * Par Value) / frequency
Par Value = $1000
Coupon rate = 8.7%
Yield to maturity = 7.4%
Frequency = 1 (Annual)
Therefore,
Coupon Payment = (8.7% * $1000) / 1
= $87
n = 9
r = 7.4%
Par Value = $1000
Formula can be now written as,
PV of Bond = Coupon Payment * (1 - 1/(1 + r)^n)/r + Par Value/(1 + r)^n
= $87 * (1 - 1/(1 + 7.4%)^9)/7.4% + $1000/(1 + 7.4%)^9
= $87 * 6.3218 + $1000/1.074^9
= $550.60 + $551.20
= $1101.80
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Draw Design Transitions Animations Slide Show Record Review View Help Tell me what you want to do eful-files from the Internet can contain viruses. Unless you need to edit, it's sater to stay in Protected View, Enable Editing Assignment 2 RM10,000 A sum of RM10,000.00 was found in a park. There are two different persons, Astra and Zeneca, claimed that they have carelessly dropped the money while at the park earlier. Since they came to the park together with another person, Omi was also called as the witness. Astra said that at least one of them does not own the money. And Zeneca also claimed that Astra is not telling the truth. Omi remained silence. Use logic to explain who did not tell the truth. 4 ^4 ENG -ch O Alig T 471 3:21 PM 6/18/20
We can conclude that astra is lying.if zeneca is telling the truth, it means astra is not telling the truth.
for the first part of your question:
- to draw: use a design software or tool to create visual elements.
- design transitions: plan and implement smooth visual transitions between different design elements.
- animations: create and incorporate dynamic movements and effects into your design.
- slide show: display a series of designed slides in a sequential manner.
- record: capture and save a video or audio recording of your design or presentation.
- review: evaluate and provide feedback on the design or presentation.
- view: look at the design or presentation in order to see its content and visual elements.
- help: seek assistance or guidance in designing, animating, or presenting your work.
design: create visual elements using appropriate software or tools.
design transitions: smoothly transition between different design elements for a cohesive and engaging experience.
animations: add dynamic movements and effects to enhance the visual appeal of your design.
slide show: display a series of designed slides in a sequential manner for presentation purposes.
record: capture a video or audio recording of your design or presentation for future reference or sharing.
review: assess the quality and effectiveness of the design or presentation and provide feedback for improvements.
view: look at the design or presentation to examine its content, layout, and visual elements.
help: seek assistance or guidance from others to enhance your design, animations, or presentation skills.
regarding the second part of your question about the money found in the park:
based on the given information, astra and zeneca made conflicting statements, while omi remained silent. let's analyze the situation using logical reasoning:
1. astra claimed that at least one of them does not own the money.
2. zeneca claimed that astra is not telling the truth.
since we know that one person is lying, we can evaluate the statements:
if astra is telling the truth, it means both astra and zeneca do not own the money. but zeneca's claim contradicts this, implying that astra is lying. this aligns with zeneca's claim and confirms that astra is indeed lying.
considering the logical analysis, we can deduce that astra is the person who did not tell the truth.
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If Michael Moulton, the Creative Director of MoneyDesktop,
decided to put up billboard puzzles to attract engineer applicants
just in Utah, what would his greatest difficulty and biggest
advantage be?
If Michael Moulton, the Creative Director of Money Desktop, decided to put up billboard puzzles to attract engineer applicants in Utah, his greatest difficulty would likely be reaching a targeted audience.
While billboards can have broad exposure, they lack the ability to specifically target engineers or individuals with engineering backgrounds.
This means that the puzzle billboards may attract a wide range of people, including those who are not engineers or not interested in engineering positions.
However, his biggest advantage would be the potential for high visibility and awareness. Billboards can capture the attention of a large number of people, creating brand recognition and generating interest in the company.
By using puzzle billboards, Moulton can create intrigue and engage viewers, potentially sparking the curiosity of individuals with engineering skills and attracting their attention to the job opportunities at MoneyDesktop.
Overall, while reaching the specific target audience may be a challenge, the high visibility and potential for creating interest make billboard puzzles a valuable tool for attracting potential engineer applicants in Utah.
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Generate a list of labels used to refer to people from other countries who come to the United States – for example, "immigrants" and "aliens." For each label, identify a general connotation (positive, negative, mixed). Discuss how connotations of these words may influence our perceptions of people from other countries. Would it make a difference if we referred to them as "guests" or "visitors"?
There are several labels used to refer to people from other countries who come to the United States. These labels can help to break down barriers between different cultures and create a sense of community among people from different backgrounds.
These labels include:
Immigrants - positive connotation.
Aliens - negative connotation.
Refugees - mixed connotation.
Illegal aliens - negative connotation.
Guests - positive connotation.
Visitors - positive connotation.
The connotations of these words may influence our perceptions of people from other countries. When people are referred to as "immigrants," it has a positive connotation because it indicates that they came to the United States to settle down and start a new life. However, when people are referred to as "aliens," it has a negative connotation because it implies that they are not from here and that they are different from us. Using the label "refugees" has a mixed connotation because it is associated with people who have had to flee their country due to conflict or persecution.
While this label can generate sympathy and compassion, it can also be associated with negative stereotypes that portray refugees as helpless and dependent. Using the term "illegal aliens" is a negative connotation because it implies that people are breaking the law by entering the country illegally. It also conveys a sense of fear and danger because it suggests that people who come to the United States illegally are criminals. Using the labels "guests" or "visitors" has a positive connotation because it indicates that people are welcome and that they are here to enjoy our hospitality.
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At the start of the year, the exchange rate was $1.25/€. At the end of the year, the exchange rate is $1.28/€. If U.S. inflation was 8% and European inflation was 4%, what has been the nominal and real change in the value of the Euro (versus the USD)?
Nominal: _____________% (to 2 decimal places like 5.29%)
Real: _____________% (to 2 decimal places like 5.29%)
Nominal change in the value of the Euro (versus the USD) = 2.40%
Real change in the value of the Euro (versus the USD) = -1.60%
Nominal change is the raw difference between the exchange rates at the beginning and at the end of a period. Nominal change = End rate – Start rate. Here, the start rate was $1.25/€ and the end rate was $1.28/€. Thus, the nominal change is:
Nominal change = End rate – Start rate= $1.28/€ – $1.25/€= $0.03/€
Nominal change = 2.40% ($0.03/$1.25) × 100
Real change takes into account the effects of inflation. The formula for real change is:
Real change = (End rate ÷ Inflation of end country) ÷ (Start rate ÷ Inflation of start country) – 1
Here, the inflation of the U.S. is 8% and the inflation of Europe is 4%. Thus, the real change is:
Real change = (End rate ÷ Inflation of end country) ÷ (Start rate ÷ Inflation of start country) – 1
= ($1.28/€ ÷ 1.04) ÷ ($1.25/€ ÷ 1.08) – 1
Real change = -1.60% [($1.28/€ ÷ 1.04) ÷ ($1.25/€ ÷ 1.08) – 1] × 100
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Activity I - What is the purpose of a Stakeholder Register and how is it used? How can a project manager incorporate this tool into controlling the project?
Activity II - What are the elements within a Stakeholder Management Plan? Why is it important to have a Stakeholder Management Plan?
It is important to have a Stakeholder Management Plan
A Stakeholder Register serves to identify and document information about stakeholders involved in a project, including their interests, expectations, and potential impact. It helps project managers understand and manage stakeholder relationships effectively. To incorporate this tool into controlling the project, project managers can continuously update the register, assess stakeholder engagement levels, mitigate stakeholder risks, and monitor stakeholder satisfaction.
A Stakeholder Management Plan includes elements such as stakeholder identification, analysis, engagement strategies, a communication plan, and monitoring and control mechanisms. It is important to have a Stakeholder Management Plan because it ensures that stakeholders are properly identified and engaged, minimizes risks and conflicts, and ultimately enhances project success by gaining stakeholder support and maintaining positive relationships.
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A company is projected to generate free cash flows of $193 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 1.6% rate in perpetuity. The company's cost of capital is 11.6%. What is your estimate for its enterprise value? Answer in millions, rounded to one decimal place (e.g., $213,456,789 = 213.5).
Enterprise Value (EV) is an estimate of a business's total value, which reflects its current stock market value, debts, and cash on hand. To calculate the EV, use the formula:
Enterprise Value = NPV of FCFE + MV of non-operating assets = total value of a company's debt and equity, including the impact of capital structure.
Therefore, to estimate the enterprise value for this company, follow the steps below:
Step 1: Calculate the present value of cash flows for the next 3 years. Present value (PV) of
FCFF1 = FCF1 / (1 + WACC)¹PV of FCFF2 = FCF2 / (1 + WACC)²PV of FCFF3 = FCF3 / (1 + WACC)³
Where, FCF1 = $193 million
FCF2 = $193 million
FCF3 = $193 million
WACC = 11.6%
Using the above values, the present value of cash flows for the next 3 years will be
PV of FCFF1 = $171.88 million
PV of FCFF2 = $144.99 million
PV of FCFF3 = $121.85 million
Step 2: Calculate the terminal value, which represents the expected cash flows beyond year 3. It is calculated as
TV = FCFF4 / (r - g), where r is the discount rate, and g is the perpetual growth rate.
TV = FCFF4 / (r - g)
Where, FCFF4 = FCF3 x (1 + g) = $193 million x (1 + 1.6%) = $196.12 million
g = 1.6%, r = WACC = 11.6%,
TV = $196.12 million / (11.6% - 1.6%)
= $2,037.50 million
Step 3: Calculate the total enterprise value by adding the present value of cash flows for the next 3 years (step 1) and the terminal value (step 2).
Enterprise Value = PV of FCFF1 + PV of FCFF2 + PV of FCFF3 + TV
= $171.88 million + $144.99 million + $121.85 million + $2,037.50 million
= $2,476.23 million
The estimated enterprise value for the company is $2,476.23 million.
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A factory manager is evaluating whether to purchase or lease a major equipment for a new production. The purchase option requires an initial cost of $92,000 plus annual operation and maintenance costs of $40,000. All the purchase option cash flows are in today's dollars. On the other hand, the lease option requires an initial non-refundable deposit of $119,000 and annual lease costs of $50,000, all in actual dollars. Using a before-tax market interest rate of 18% per year and an average inflation rate of 9.26% per year over the next several years, determine the PW of each option for an analysis period of 14 years. 1. The PW of the costs for the purchase option is approximately equal to OA. $398,942 OB. $292,322 OC. $421,769 O D. $132,000 2. The PW of the costs for the lease option is approximately equal to O A. $502,677 B. $369,403 OC. $169,000 OD. $531,212 G
The pw of the costs for the purchase is approximately $490,943.
to calculate the present worth (pw) of each , we need to discount the cash flows using the given before-tax market interest rate and account for inflation. here's the calculation for each :
1. purchase option:
initial cost: $92,000 (in today's dollars)
annual operation and maintenance costs: $40,000 (in today's dollars)
to calculate the pw of the costs for the purchase , we will discount the annual costs using the before-tax market interest rate of 18% per year and adjust for inflation:
pw = initial cost + (annual costs / (1 + inflation rate))ⁿ
where n is the number of years (14 years in this case).
pw = $92,000 + ($40,000 / (1 + 0.0926))¹⁴
pw ≈ $92,000 + ($40,000 / 1.0926)¹⁴
pw ≈ $92,000 + ($36,585.37)¹⁴
pw ≈ $92,000 + $398,942.56
pw ≈ $490,942.56 2. lease option:
initial deposit: $119,000 (in actual dollars)
annual lease costs: $50,000 (in actual dollars)
to calculate the pw of the costs for the lease , we will discount the annual costs using the before-tax market interest rate of 18% per year without adjusting for inflation (as the costs are already in actual dollars):
pw = initial deposit + (annual costs / (1 + interest rate))ⁿ
pw = $119,000 + ($50,000 / (1 + 0.18))¹⁴
pw ≈ $119,000 + ($50,000 / 1.18)¹⁴
pw ≈ $119,000 + ($42,372.88)¹⁴
pw ≈ $119,000 + $502,676.76
pw ≈ $621,676.76
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Which of the following best describes an accrued expense? 1. An expense that has been incurred in this accounting period but that was paid for in the last accounting period. 2. An expense that will be incurred in the next accounting period but that has been paid for in this accounting period 3. An expense that has been incurred in this accounting period but will be paid for in the next accounting period. 4. An expense that will be incurred and paid for in the next accounting period.
An accrued expense is an expense incurred in the current accounting period but will be paid for in the next period, requiring proper recognition and recording in financial statements. The correct answer is option 3.
An accrued expense is best described as an expense that has been incurred in this accounting period but will be paid for in the next accounting period. This means that the goods or services that have been received by a company have been used during the current period, but the payment for these goods or services has not yet been made until the next accounting period. Accrued expenses are recognized by a company in the current period, and this is done by debiting the expense account and crediting the corresponding liability account.Therefore, option 3: An expense that has been incurred in this accounting period but will be paid for in the next accounting period best describes an accrued expense.It is essential to record accrued expenses in a company's financial statements so that the liabilities are not understated. Accrued expenses are vital for recording expenses and the accurate financial health of a company in a particular period.For more questions on financial statements
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The city has imposed a 3-fish limit per person to prevent overfishing, and thus a sharp decline in the fish population. The city imposed this limitation because the lake and all its little fishies is effectively a Common Good Public Good Private Good O Club Good Question 31 You are starting a local chapter of the International Dark Sky Association to promote the use of light bulbs that reduce light pollution so that you can engage in your hobby of backyard astronomy with your supposedly eager cosmonaut friends. Nobody showed up to your first meeting, though everyone you talked with said it sounded like an interesting idea. You have run into the ____, where everyone wants the idea to go forward, but rationally does not want to contribute their time or 7111 resources. O Anti-Science Bias Problem O Collective Action Problem O Starkiller Problem 2 pts O Civic Voluntarism Problem
The city has imposed a 3-fish limit per person to prevent overfishing, and thus a sharp decline in the fish population. The city imposed this limitation because the lake and all its little fishies are effectively a common good.
The Common Good is a concept in political philosophy that refers to the interests and needs of the public as a whole rather than those of particular individuals or groups. In this case, the city has imposed a 3-fish limit per person to prevent overfishing, which is necessary to ensure that the lake's fish population remains healthy and sustainable. This is because the lake and all its little fishies are effectively a common good, meaning that they belong to everyone and are vulnerable to overuse and depletion if not managed properly.
On the other hand, the problem faced by the person who started a local chapter of the International Dark Sky Association to promote the use of light bulbs that reduce light pollution is the Collective Action Problem. The Collective Action Problem occurs when individuals rationally decide not to contribute their time or resources to a public good, even if they believe that the public good would be beneficial. In this case, everyone wants the idea to go forward, but rationally does not want to contribute their time or resources, which is why nobody showed up to the first meeting.
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16 Triple-D Diner has a market-to-book ratio of 2.35, earnings per share of $0.525, and a book value of $0.755 per share. Calculate the price-earnings ratio for the firm. 3.38 3.11 1.71 (D) 1.63 (E) 1.44
This can be represented mathematically as: 2.35 = Market value per share / $0.755Therefore, the market value per share of 16 Triple-D Diner is given by: Market value per share = 2.35 x $0.755
= $1.77325 Earnings per share: Earnings per share (EPS) is a ratio that measures the amount of profit that a company has generated per share of its outstanding common stock. The formula for EPS is given as: EPS = Net income / Total number of outstanding shares Given that the earnings per share of 16 Triple-D Diner is $0.525, it means that the company has generated a profit of $0.525 per share. Book value per share: Book value per share is a ratio that represents the total value of a company's assets that shareholders would receive if the company were to liquidate its assets and pay off all of its liabilities.
The formula for book value per share is given as: Book value per share = Total shareholder equity / Total number of outstanding sharesGiven that the book value per share of 16 Triple-D Diner is $0.755, it means that the total shareholder equity of the company is $0.755 per share .Price-earnings ratio :The price-earnings (P/E) ratio is a valuation ratio that compares a company's current stock price to its earnings per share (EPS). The formula for P/E ratio is given as: P/E ratio = Market price per share / Earnings per share Therefore, the price-earnings ratio for 16 Triple-D Diner is given by: P/E ratio = Market price per share / Earnings per share Substituting the values,
we get:P/E ratio = $1.77325 / $0.525 = 3.38Therefore, the price-earnings ratio for 16 Triple-D Diner is 3.38.
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A new project will have an intial cost of $100,000. Cash flows from the project are expected to be $−20,000,$40,000,$30,000,$30,000 and $40,000 over the next 5 years, respectively. Assuming a discount rate of 10%, what is the project's IRR? 4.78% 4.44% 4.87% 4.30% 4.58%
Initial cost = $100,000.Cash flows from the project are expected to be $-20,000, $40,000, $30,000, $30,000 and $40,000 over the next 5 years, respectively.The formula for calculating IRR is:-NPV = Σ(CFt) / (1+r)tHere,Cash flows = CFtInitial Investment = -$100,000Discount rate = 10%Calculation of IRR.
IRR or internal rate of return is a useful financial metric that is used to determine the profitability and financial feasibility of a project or investment. The IRR is the discount rate at which the net present value (NPV) of the cash flows of a project equals zero. In other words, the IRR is the rate at which the present value of future cash inflows equals the initial investment. It is a measure of the profitability of an investment and helps to determine whether the investment is worth undertaking or not.In the given question, the initial cost of the project is $100,000.
The cash flows from the project are expected to be $-20,000, $40,000, $30,000, $30,000 and $40,000 over the next 5 years, respectively. The discount rate is 10%. To calculate the IRR of the project, we can use the formula NPV = Σ(CFt) / (1+r)t, where CFt is the cash flow in year t, r is the discount rate, and t is the number of years.Using the trial and error method, we can assume a discount rate and calculate the NPV. We can then compare the NPV with zero and adjust the discount rate until we get an NPV of zero.
Alternatively, we can use Excel to calculate the IRR by entering the cash flows and applying the IRR function.The IRR of the project is found to be 4.78%. Therefore, the project is expected to generate a return of 4.78% per annum over its life, which is higher than the discount rate of 10%. Hence, the project is financially feasible.
Thus, the IRR of the given project is 4.78%.
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Stage 1: Trees are sold to lumber company. Stage 3. Furniture company sells furniture to retail Stage 4: Fumiture store sells furniture to consumer A) What is the value added at each stage ? B) How much does this output contribute to GDP? C) How much would this output contribute to GDP if the lumber were imported from Canada? please help me especially with 3rd part !!!!
A) The value added at each stage includes the cost of raw materials, labor, and additional expenses.
B) The output contributes to GDP based on the total value of the final goods and services produced.
C) If the lumber were imported from Canada, the output would still contribute to GDP, excluding the value added in the lumber import stage.
At Stage 1, trees are sold to a lumber company. The value added at this stage would include the cost of acquiring the trees, expenses related to logging and processing the timber, as well as any labor costs involved. Learn more about the value added concept in GDP calculations.
At Stage 3, the furniture company purchases the processed timber from the lumber company and transforms it into furniture. The value added here encompasses the cost of the timber, labor and manufacturing costs, as well as any other expenses incurred during the furniture production process.
At Stage 4, the furniture store sells the furniture directly to the consumer. The value added in this stage includes the cost of the furniture, any additional services provided by the store (such as delivery or assembly), and the store's profit margin.
In terms of GDP, the output contributes to the total GDP based on the value added at each stage. GDP measures the market value of all final goods and services produced within a country's borders. Therefore, the value added at each stage of the furniture production process is included in the GDP calculation.
If the lumber were imported from Canada, the value added by the lumber company in Stage 1 would not be part of the domestic GDP, as it occurred outside the country's borders. However, the subsequent stages, involving the furniture company and furniture store, would still contribute to the GDP based on the value added within the domestic economy.
Therefore, the overall contribution to GDP would be reduced, but not eliminated, by the amount of value added in the lumber import stage.
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Suppose the demand function of a product is: QD = 300 - 3P and its supply function is QS = -50+2P, where QD and QS are respectively the quantity demanded and supplied of the product and P is its price. i) Algebraically calculate and graph the equilibrium price, equilibrium quantity, and consumer surplus and producer surplus at the equilibrium point.
Next, suppose that the government imposes a maximum selling price of the product, which is less than the equilibrium price (P) by 10 euros. ii) Explain and illustrate diagrammatically, what will be the effect of this government action on the quantity of the product. iii) Calculate the change in total market surplus for the product (ie the sum of consumer surplus and producer surplus) due to the imposition of the price ceiling. iv) Illustrate diagrammatically and calculate the total surplus in the market for the product after the price ceiling is imposed.
i) Algebraically calculating the equilibrium price, equilibrium quantity, consumer surplus, and producer surplus: Producer Surplus = 1575 euros
ii) The shortage will cause consumers to compete for the limited supply, resulting in non-price rationing mechanisms, such as waiting lists or black markets.
iii) Change in Total Market Surplus = (New Consumer Surplus + New Producer Surplus) - (Consumer Surplus + Producer Surplus)
iv) Total Surplus = New Consumer Surplus + New Producer Surplus
To find the equilibrium price and quantity, we set the quantity demanded equal to the quantity supplied:
QD = QS
300 - 3P = -50 + 2P
Adding 50 and 3P to both sides:
350 = 5P
Dividing both sides by 5:
P = 70
Substituting the equilibrium price back into either the demand or supply function to find the equilibrium quantity:
QD = 300 - 3(70)
QD = 90
The equilibrium price is 70 euros, and the equilibrium quantity is 90 units.
To calculate consumer surplus, we use the demand function:
Consumer Surplus = 0.5 * (QD * P - (1/6) * QD^2)
Consumer Surplus = 0.5 * (90 * 70 - (1/6) * 90^2)
Consumer Surplus = 3150 euros
To calculate producer surplus, we use the supply function:
Producer Surplus = 0.5 * ((1/2) * QS^2 - QS * P)
Producer Surplus = 0.5 * ((1/2) * 90^2 - 90 * 70)
Producer Surplus = 1575 euros
ii) The imposition of a maximum selling price below the equilibrium price will create a price ceiling. This will lead to excess demand or a shortage of the product in the market. Diagrammatically, this is shown as the demand curve (QD) intersecting the price ceiling line at a quantity greater than the quantity supplied (QS). The shortage will cause consumers to compete for the limited supply, resulting in non-price rationing mechanisms, such as waiting lists or black markets.
iii) To calculate the change in total market surplus due to the price ceiling, we need to calculate the new consumer surplus and producer surplus. The new quantity supplied will be equal to the quantity demanded at the price ceiling.
QS = 300 - 3Pc
QS = 300 - 3(P - 10)
QS = 330 - 3P
Setting QS equal to QD:
330 - 3P = 300 - 3Pc
Pc = 10
The new equilibrium quantity is 290 units (QD = QS = 290).
New Consumer Surplus = 0.5 * (QD * Pc - (1/6) * QD^2)
New Consumer Surplus = 0.5 * (290 * 10 - (1/6) * 290^2)
New Producer Surplus = 0.5 * ((1/2) * QS^2 - QS * Pc)
New Producer Surplus = 0.5 * ((1/2) * 290^2 - 290 * 10)
The change in total market surplus is the difference between the original surplus and the new surplus.
Change in Total Market Surplus = (New Consumer Surplus + New Producer Surplus) - (Consumer Surplus + Producer Surplus)
iv) To illustrate the total surplus in the market after the price ceiling is imposed, we calculate the new total surplus by adding the new consumer surplus and producer surplus.
Total Surplus = New Consumer Surplus + New Producer Surplus
The equilibrium price is 70 euros, and the equilibrium quantity is 90 units. Consumer surplus at the equilibrium point is 3150 euros, and producer surplus is 1575 euros. The imposition of a price ceiling below the equilibrium price will create a shortage in the market. The quantity demanded will exceed the quantity supplied, leading to excess demand. The change in total market surplus can be calculated by comparing the original surplus to the new surplus after the price ceiling is imposed. The total surplus in the market after the price ceiling is imposed can be determined by adding the new consumer surplus and producer surplus. Graphical representations can help visualize the effects of the price ceiling on quantity and surplus.
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a. The maturity of a futures contract on a stock market index is 4 months. The multiplier for the futures contract $250. The current level of the index is 32,000. The risk-free rate is 0.6% per month and dividend yield on the stock market index is 0.3% per month. The initial margin requirement is 10%.
i. What is the parity value of the futures price now? (3 marks)
ii. Assume the futures contract is fairly priced. How much initial margin you need to deposit if you long 5 contracts? (2 marks)
iii. Calculate the one-month holding-period return for your long position in the futures contract if the stock market index increases to 33,000 one month later. Assume the futures contract keeps being priced fairly. (5 marks)
If you long 5 contracts, you would need to deposit approximately $80,962.88 as initial margin.
The one-month holding-period return for the long position in the futures contract, assuming fair pricing, is approximately 0.019 or 1.9%.
i. The parity value of the futures price can be calculated using the cost-of-carry model. The formula is as follows:
Parity Value = Spot Price * (1 + Risk-Free Rate - Dividend Yield)^(Time to Maturity)
Given:
Spot Price (Current level of the index) = 32,000
Risk-Free Rate = 0.6% per month
Dividend Yield = 0.3% per month
Time to Maturity = 4 months
Parity Value = 32,000 * (1 + 0.006 - 0.003)^(4)
Parity Value = 32,000 * (1.003)^4
Parity Value ≈ 32,000 * 1.012036
Parity Value ≈ 32,385.15
ii. To calculate the initial margin required for long 5 contracts, we multiply the contract size (multiplier) by the current futures price and multiply it by the initial margin requirement (10%). The formula is as follows:
Initial Margin = Contract Size * Futures Price * Initial Margin Requirement
Given:
Contract Size (Multiplier) = $250
Futures Price (Parity Value) = $32,385.15
Initial Margin Requirement = 10%
Plugging in the values:
Initial Margin = $250 * $32,385.15 * 0.1
Calculating:
Initial Margin = $809,628.75 * 0.1
Initial Margin ≈ $80,962.88
Therefore, i
iii. The one-month holding-period return for the long position in the futures contract can be calculated using the formula:
Holding-Period Return = (Futures Price at the End - Futures Price at the Beginning) / Futures Price at the Beginning
Given:
Futures Price at the Beginning (Parity Value) = $32,385.15
Futures Price at the End (when the stock market index increases to 33,000) = $33,000
Holding-Period Return = ($33,000 - $32,385.15) / $32,385.15
Holding-Period Return = $614.85 / $32,385.15
Holding-Period Return ≈ 0.019
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Problem 4: Capital Budgeting (30 points) A friend of yours identified a need for a gourmet cookie shop in Arlington and he wants to open one very soon. He is very talented in the kitchen and bakes amazing cookies; but, when it comes to finance, he is not really that bright. He thinks that you will be the icing on the cookie if you join him on this project. He already has spent $15,000 on marketing research to come up with the following projections about the project. The project requires an initial investment of $60,000 for equipment and other related expenses. This initial investment will be depreciated down to a book value of $15,000 over 5 years, after which you will not continue operating the bakery. The average price of a cookie will be $4, and the marketing company estimates that you are going to sell 20,000 cookies for the first year; 25,000 for the second; 40,000 for the third; 50,000 for the fourth, and 60,000 for the last year. The net working capital requirement for each year is estimated to be 5% of the following year's revenues. Each cookie will cost $1 to make, and other fixed costs will run $10,000 per year for each year. The equipment will have a salvage value of $20,000 at the end of the fifth year. In an effort to estimate an appropriate discount rate for this project, you have determined that your operations are going to be similar to Crumble Cookies Inc. After some research you have identified that Crumble Cookies Inc. Has an equity beta of 1. 6 and a debt to value ratio of 40%. You on the other hand would finance the project more conservatively with only 20% debt and expect to be able to raise debt at the risk-free rate. A a) Given that the expected return on the market portfolio is 8%, the risk-free rate is 3%, and the tax rate is 25%, what would be the NPV of this project? (25 points) b) What would the NPV be if you decided to keep operating the bakery after year 5 and kept generating the same cash flow for each year thereafter forever? (Ignore the salvage value in this part) (5 points)
The NPV of the project, considering a 5-year operation and subsequent cessation, is approximately $19,340.52.
To calculate the NPV, we first determine the cash flows for each year by subtracting the costs from the revenues. Then, we discount each cash flow to its present value using the discount rate. The net working capital requirement for each year is 5% of the following year's revenues.
Using the given information, we find the following cash flows for each year:
Year 1: Revenue = $80,000, Costs = $30,000, Net working capital = $4,000
Year 2: Revenue = $100,000, Costs = $30,000, Net working capital = $5,000
Year 3: Revenue = $160,000, Costs = $30,000, Net working capital = $8,000
Year 4: Revenue = $200,000, Costs = $30,000, Net working capital = $10,000
Year 5: Revenue = $240,000, Costs = $30,000, Net working capital = $12,000
Next, we discount each cash flow to its present value using a discount rate of 8% (given the expected return on the market portfolio). The present values of the cash flows are then summed up, and the initial investment of $60,000 is subtracted to obtain the NPV.
Calculating the NPV using the formula mentioned earlier, we find an NPV of approximately $19,340.52.
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"On May 12, 2022, Itsy Bitsy, a 15-year-old citizen of Illinois, scheduled an appointment with a local planned parenthood facility for an abortion. It was determined that Itsy Bitsy became pregnant on March 15, 2022. On May 11, 2022, the Supreme Court of Kentucky ruled that minors could not receive an abortion without parental consent. Itsy Bitsy's parents refused to provide consent. Describe, in detail, the effect the Kentucky Supreme Court's decision will have on Mary Sue?
(2) On January, 15, 2022, in a case presented to a Washington state court, the judge and the jury determined that no specific statute was applicable to the issue presented in the lawsuit. Instead, the judge decided to refer to previously recorded legal decisions made in similar cases. Discuss, in detail, whether this action was/is appropriate. Why or why not?"
On May 12, 2022, Itsy Bitsy, a 15-year-old citizen of Illinois, scheduled an appointment with a local planned parenthood facility for an abortion. It was determined that Itsy Bitsy became pregnant on March 15, 2022.
On May 11, 2022, the Supreme Court of Kentucky ruled that minors could not receive an abortion without parental consent. Itsy Bitsy's parents refused to provide consent. The Kentucky Supreme Court's decision will have the effect of denying Itsy Bitsy the right to receive an abortion without her parent's consent. Therefore, Mary Sue's request for an abortion will be denied because minors are not authorized to seek abortion without parental consent, as per the Supreme Court of Kentucky's decision.
The Supreme Court of Kentucky's ruling means that minors can only seek abortion with parental consent, thereby, restricting minors' abortion rights. Itsy Bitsy's request for an abortion would be denied because her parents refused to provide their consent. The Supreme Court of Kentucky's decision will have the effect of limiting access to abortion services for minors who do not have the consent of their parents. The decision restricts the right of minors to make decisions about their reproductive health.
The judge's action of referring to previously recorded legal decisions made in similar cases is an appropriate approach. This is because a legal precedent has been set, which allows for a similar case to be decided based on a previous decision that has been made on the issue. The use of precedent ensures consistency in judicial decisions, making the law more predictable. In addition, it ensures that cases with similar facts are decided consistently. Thus, it can be said that the judge's action of referring to previously recorded legal decisions made in similar cases is appropriate.
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A company owns and operates an electric sign that uses 300 individual lamps to display messages. The sign currently uses bulbs that cost $2.50 each and last for an average of 2 years. These lamps draw 60 watts of power each. The company is considering switching to LED bulbs that have an estimated life span of 10 years and cost $30 each. The LED bulbs only draw 7.5 watts of power for the same light levels. Replacing the lamps requires special equipment and labor that will cost $1,200 dollars. This work is performed every two years for the current lamps and at the end of 10 years for the LED lamp. The sign operates 2500 hours each year. Electricity costs $0.075/kWh. The company uses 7% as its rate of return. Assume that the maintenance protocol replaces all 300 lamps when the average lifetime is reached. Consider costs to be negative numbers and benefits as positive a.) Compute the total annual cost of operating the sign using the 300, 60 watt lamps. DO NOT include dollar signs the answer. b.) Compute the total annual cost of operating the sign using the 300, 7.5 watt LED lamps. DO NOT include a dollar sign in the answer. (Note: this is a cost and should be a negative value c.) Determine the present worth of benefits by subtracting the expenses of owning and operating the LED bulbs from the conventional bulbs. (Hint: comparing the alternatives requires equal life spans. Use least common multiple of lives) d.) Compute the benefit-cost ratio
The total annual cost of operating the sign using the 300, 60-watt lamps is $6,500.
to compute the total annual cost of operating the sign using the 300, 60-watt lamps: expense
step 1: calculate the annual electricity cost:
electricity consumption per lamp per year = (60 watts/lamp) * (2500 hours/year) / 1000 (to convert watts to kilowatts) = 150 kwh/lamp
total electricity consumption per year = (150 kwh/lamp) * 300 lamps = 45,000 kwh/year
electricity cost per year = (45,000 kwh/year) * $0.075/kwh = $3,375/year
step 2: calculate the annual cost of replacing the lamps:
number of lamp replacements per year = 2500 hours/year / (2 years/lamp) = 1250 replacements/year
cost of lamp replacements per year = (1250 replacements/year) * ($2.50/lamp) = $3,125/year
step 3: calculate the total annual cost:
total annual cost = electricity cost per year + cost of lamp replacements per year
total annual cost = $3,375/year + $3,125/year = $6,500/year to compute the total annual cost of operating the sign using the 300, 7.5-watt led lamps:
step 1: calculate the annual electricity cost:
electricity consumption per lamp per year = (7.5 watts/lamp) * (2500 hours/year) / 1000 (to convert watts to kilowatts) = 18.75 kwh/lamp
total electricity consumption per year = (18.75 kwh/lamp) * 300 lamps = 5,625 kwh/year
electricity cost per year = (5,625 kwh/year) * $0.075/kwh = $421.88/year (rounded to the nearest cent)
step 2: calculate the cost of replacing the lamps:
number of lamp replacements per year = 2500 hours/year / (10 years/lamp) = 250 replacements/year
cost of lamp replacements per year = (250 replacements/year) * ($30/lamp) = $7,500/year
step 3: calculate the total annual cost:
total annual cost = electricity cost per year + cost of lamp replacements per year
total annual cost = $421.88/year + $7,500/year = -$7,078.12/year
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Your task: Apply the material covered in BU1303 Supply Chain Management to assist you developing the sourcing plan for the paper in Vienna, Austria. 2. Develop a 'supplier portfolio screening' plan for XYZ Corp. with step-by-step timelines. 3. Create a 'supplier selection criteria' checklist to evaluate the supplier capabilities.
1. Sourcing Plan for Paper in Vienna, Austria:
Step 1: Identify Paper Requirements
- Determine the specific paper requirements, such as type, quality, quantity, and any specific certifications or sustainability criteria.
- Consider the specific needs of XYZ Corp, such as cost, delivery lead times, and supplier reliability.
Step 2: Supplier Identification
- Research and identify potential paper suppliers in Vienna, Austria.
- Consider factors such as their reputation, experience in the industry, production capacity, and ability to meet the identified requirements.
Step 3: Supplier Evaluation
- Develop a supplier evaluation framework to assess potential suppliers.
- Evaluate suppliers based on criteria such as quality standards, production capabilities, pricing, sustainability practices, and reliability.
- Conduct site visits or virtual meetings with shortlisted suppliers to gain a deeper understanding of their operations.
Step 4: Negotiation and Contracting
- Initiate negotiations with selected suppliers to determine pricing, terms, and conditions.
- Consider long-term partnerships, favorable payment terms, and any other specific requirements from XYZ Corp.
- Ensure the contract includes clauses for quality assurance, delivery schedules, and dispute resolution.
Step 5: Supplier Onboarding and Relationship Management
- Develop an onboarding plan to facilitate a smooth transition with the selected supplier.
- Share XYZ Corp's expectations, performance metrics, and key performance indicators (KPIs).
- Establish regular communication channels and conduct periodic supplier performance reviews.
2. Supplier Portfolio Screening Plan for XYZ Corp:
Step 1: Define Screening Criteria
- Determine the key factors that XYZ Corp considers important in supplier selection, such as quality, reliability, cost, sustainability, and responsiveness.
- Assign weights or importance levels to each criterion based on their significance to XYZ Corp's operations.
Step 2: Identify Potential Suppliers
- Research and identify a list of potential suppliers based on industry knowledge, market research, and referrals.
- Consider suppliers' reputation, industry experience, financial stability, and capabilities.
Step 3: Evaluate Suppliers
- Apply the defined screening criteria to evaluate potential suppliers.
- Gather information through supplier questionnaires, interviews, site visits, and reference checks.
- Score each supplier based on the criteria and weights assigned.
Step 4: Shortlist Suppliers
- Identify a shortlist of suppliers based on the evaluation results.
- Consider selecting suppliers that meet the minimum threshold scores or those with the highest overall scores.
Step 5: Conduct Supplier Due Diligence
- Conduct further due diligence on the shortlisted suppliers, such as reviewing financial statements, legal compliance, and supplier performance history.
- Evaluate their capacity to meet XYZ Corp's current and future demands.
Step 6: Make Supplier Selection
- Analyze the evaluation results and select the suppliers that best align with XYZ Corp's requirements and strategic goals.
- Consider factors like cost, quality, reliability, sustainability, and the potential for long-term partnerships.
3. Supplier Selection Criteria Checklist for XYZ Corp:
1. Quality Standards:
- Does the supplier have recognized quality certifications?
- What is their track record for meeting quality standards?
- Are they committed to continuous improvement?
2. Production Capabilities:
- Can the supplier meet the required production volume and lead times?
- Do they have the necessary technology, equipment, and capacity?
3. Cost and Pricing:
- Is the supplier's pricing competitive and aligned with market rates?
- Do they offer favorable payment terms and discounts?
4. Sustainability Practices:
- Does the supplier have environmental and social responsibility initiatives?
- Can they provide evidence of sustainable sourcing and production processes?
5. Reliability and On-Time Delivery:
- What is the supplier's track record for on-time deliveries?
- Do they have effective supply chain management systems in place?
6. Financial Stability:
- Is the supplier financially stable and capable of long-term commitments?
- Can they provide financial statements or references to demonstrate their stability?
7. Communication and Responsiveness:
- How responsive and proactive is the supplier in addressing inquiries and concerns?
- Do they have clear communication channels and a dedicated point of contact?
8. Cultural Fit and Compatibility:
- Do the supplier's values and business ethics align with XYZ Corp's?
- Are there any potential cultural or language barriers that may impact collaboration?
Note: The specific criteria and their weights may vary based on XYZ Corp's unique requirements and priorities. The checklist should be customized accordingly.
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How long will it take $1401.00 to accumulate to $1612.00 at 6% p.a. compounded monthly? State your answer in years and months (from 0 to 11 months). The investment will take year(s) and month(s) to ma
Given, principal amount (P) = $1401.00 Rate of interest (r) = 6%Time (t) = ?Final amount (A) = $1612.00 The formula to calculate compound interest is,A = P(1 + r/n)nt where,A = Final amount P = Principal amount r = Rate of interest n = Number of times the interest is compounded per year.t = Time period in years.
From the given data, we can see that interest is compounded monthly.Therefore, n = 12 (number of months in a year)Substitute the given values in the formula,$1612.00 = $1401.00(1 + 6/12)^(12t)1612/1401 = (1 + 0.06)^(12t)1.150606 = (1.005)^12t Taking natural logarithm on both sides,ln 1.150606 = ln (1.005)^12t12t ln (1.005) = ln 1.150606 t = ln 1.150606 / 12 ln 1.005 t = 2.75 years (approx)Therefore, it will take 2 years and 9 months (from 0 to 11 months) to accumulate $1401.00 to $1612.00 at 6% p.a. compounded monthly.
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