1. (40 points) You are evaluating two potential public projects to implement in your local jurisdiction. Both projects have a 10 year time horizon. For Project Alpha, the cost at the end of the first year is $1,000,000 and $100,000 each year thereafter. There are no benefits in the first two years but are constant at $300,000 per year thereafter. For Project Beta, the cost at the end of the first year is $1,000,000 and $90,000 each year thereafter. Benefits are constant at $200,000 per year for all years.
Use Excel to answer the following questions in 2-5 sentences each. You have to provide your answers here even if you are attaching a separate Excel file.
1) What is the NPV for Project Alpha? In your answer explain what NPV is, why it’s useful as well as its shortcomings.
2) Does Project Alpha pass the economic efficiency test based on your answer in part 1)? Why? Explain?
3) What is the BCR for Pro Project Alpha? In your answer explain what BCR is, why it’s useful as well as its shortcomings.
4) Does Project Alpha pass the economic efficiency test based on your answer in part 3)? Why? Explain?
5) What is the IRR for Project Alpha? In your answer explain what IRR is, why it’s useful as well as its shortcomings.
6) Does Project Alpha pass the economic efficiency test based on your answer in part 5)? Why? Explain?
7) Are your conclusions about economic efficiency consistent in parts 2), 4), and 6)? Why or why not? Did you expect this?
8) What is the NPV for Project Beta?
9) Does Project Beta pass the economic efficiency test based on your answer in part 8)? Why? Explain?
10)What is the BCR for Project Beta?
11) Does Project Beta pass the economic efficiency test based on your answer in part 10)? Why? Explain?
12)What is the IRR for Project Beta?
13)Does Project Beta pass the economic efficiency test based on your answer in part 12)? Why? Explain?
14)Are your conclusions about economic efficiency consistent in parts 9), 11), and 13)? Why or why not?
15)Which project would you recommend? Why?
16)What if I told you that Project Alpha is a football stadium and Project Beta is a hospital and your jurisdiction currently does not have either? Would your answer change? Why or why not?
17)Instead of implementing either project, if you invested your $1,000,000 today at a 5% interest rate which compounds quarterly, how much money would you have in 10 years?
2. (28 points) It’s that time of the year and you have to calculate your federal taxes. (Lucky for you, there are no state or local income taxes where you live.) You have gathered these data about your finances:
i. Wage income = $45,000
ii. Corporate bond interest income = $800
iii. US Treasury bond interest income = $1000
iv. Tax-exempt Interest income from the bond issued by the State of Georgia = $600
v. Total itemized deductions = $12,000
Use the personal exemptions, standard deductions and rate schedule in this link:https://taxfoundation.org/2017-tax-brackets/
First, suppose you are single:
1) What is your marginal tax rate?
2) What is your tax liability?
3) What is your effective tax rate?
4) How would a $1,000 tax credit change your tax liability and effective tax rate?
Now, suppose you are married and your spouse has no wage or interest income and your joint itemized deductions are still $12,000:
5) What is your joint marginal tax rate?
6) What is your joint tax liability?
7) What is your joint effective tax rate?
8) How would a $1,000 tax credit change your tax liability and effective tax rate?
Now, suppose you are married and your spouse has the exact same income profile as you and your joint itemized deductions are still $12,000:
9) What is your joint marginal tax rate?
10)What is your joint tax liability?
11) What is your joint effective tax rate?
12)How would a $1,000 tax credit change your tax liability and effective tax rate?
13)Do you think this is fair? Does this make you want to get married or stay single?
14)Is this tax system progressive, regressive, or proportional? Why?
3. (14 points) A small town has a property tax base with an appraised value of $400,000 of taxable real property, $80,000 of taxable personal property, and $50,000 of non-taxable property. The assessment ratio is 40% for this local government. The homestead exemption is relatively small but reduces the assessed value by $50,000. The town estimates that the budgetary needs at $120,000.
1) What statutory tax rate would allow the town to meet its budgetary obligations?
2) Given the statutory tax rate you found in part 1), what is the effective property tax rate for this town?
3) You are contemplating about moving to this town. The property you are interested in buying has a market value of $150,000. How much would you pay in property taxes to this school district?
4) How would your answer in part 3) change if you discovered that you could get a $5,000 exemption against the assessed value of your new home?
5) Would your property tax bill affect your decision to move to this town? Why or why not? What other information might be helpful in making your decision?
6) Suppose that the property tax rate you found in part 1) increases by 3%. What is the new rate and your new tax bill?
7) Suppose that the property tax rate you found in part 1) increases by $1 per $100 of assessed value. What is the new rate and your new tax bill?
4. (12 points) Suppose you are in the 25% federal income tax bracket and want to invest $100,000 in an interest-earning asset.
1) Which asset would you invest in and why:
i. AAA rated (highest rating) municipal bond with a 4% yield or
ii. AAA rated (highest rating) corporate bond with a 5.4% yield
iii. U.S. treasuries with a 5.5% yield? Explain.
2) Suppose you get a large pay raise and your marginal income tax rate is now 39.6%. How would your answer change in part 1)?
3) What do you conclude about the value of tax-exemption for different income groups?
4) Do you think this type of tax preference is fair?
5) Would you answer change if the corporate bond rating declined to below investment grade? Why?
6) Would your answer change if the municipal bond rating declined to below investment grade? Why?
5. (6 points) Explain the role of financial statement analysis, Balance Sheet and Income Statement, and financial ratios in evaluating financial health of a jurisdiction or an organization in 1-2 paragraphs.
Problem-Set-4….docx
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1 3 Proposed Strategies For Improvement In Costing And Pricing System Of The Organis 2958700
/in Uncategorized /by developer1.3 Proposed strategies for improvement in costing and pricing system of the organisation: ASDA can adopt the following techniques to reduce its costs: JIT system of inventory: The JIT approach suggests that an organization needs to procure input materials as and when required in the production process. This reduces the inventory level, which further reduces the carrying cost of inventories. Activity based management: Activity based costing technique is used to identify and eliminate non-value adding (NVAs) from the business operations, which further leads to a reduction in operating costs. Consistent monitoring and control: Monitoring and control helps in preventing the deviation of actual costs from the budgeted ones through observation, feedback sharing and corrective measures. Total Quality Management (TQM): TQM is focused on consistently improving business processes which makes production and other business processes more efficient. Increase in output reduces the per unit total cost of production. 2.1 Forecasting of cost and revenues: Accurate forecasting of cost and revenues are essential for the development of sound business strategies. An organization can make forecasts based on historic trends or future probabilities (Agrawal, 2009). However, a combination of both historic study and future probabilities can help in making more accurate predictions. The most common forecasting techniques are mentioned below: ?Delphi technique ?Scenario writing ?Subjective approach ?Time-series forecasting Document Preview:
Order NoEHUK5992Word3000Deadline2015-11-21Allocation Date2015-11-21 01:02:00Order TypeFinance AssignmentAcademic LevelMasterSubjectFinanceOrder DeliveryTopic Managing Financial (Hanan) Admin Remark Please follow the guidelines strictly Do make sure all the points have addressed and cross checked No basic errors such as – grammar, spelling , sentence formation and wrong references will be accepted Downloads
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1 3 If Real Gross Domestic Product Is R350 Billion And Planned Aggregate Expenditure 3298375
/in Uncategorized /by developer1.3 If real gross domestic product is R350 billion and planned aggregate expenditure is R275 billion, then inventories will: a) pile up and output will decrease. b) pile up and output will increase. c) be depleted and output will decrease. d) be depleted and output will increase. e) stay constant, as will output.
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1 3 Research Aims The Aim Of The Research Is To Evaluate The Effectiveness Of Market 2958517
/in Uncategorized /by developer1.3 Research aims: The aim of the research is to evaluate the effectiveness of marketing communications over social networks and its impact on organisational brand image while expanding business globally. The study focuses on the approached undertaken by Starbucks while incorporating the business actions. 1.4 Research objectives: • To identify the social networking factors adopted by the beverage industry to expand its business globally. • To determine the impact of marketing communications over social networks for building brand image and successful market penetration. • To evaluate the effectiveness of the marketing communications approaches of Starbucks for global business expansion. • To recommend suitable marketing communication approaches to Starbucks as its global business expansion. 1.5 Research Questions: • What are the social networking factors adopted by the beverage industry to expand its business globally? • How marketing communications impacts over social networks for enhancing the brand image and successful market penetration? • What are the marketing communication approaches adopted by Starbucks for global business expansion? • What would be the suitable marketing communication approaches to improve the global business expansion policies of Starbucks? Document Preview:
Order NoEHUK5877Word9500Deadline2015-09-03Allocation Date2015-09-02 23:42:34Order TypeDissertation (full)Academic LevelBachelorSubjectMarketingOrder DeliveryTopic MARKETING COMMUNICATIONS OVER SOCIAL NETWORKS AND ITS IMPACT ON ORGANISATIONAL BRAND IMAGE WHILE EXPANDING BUSINESS GLOBALLY: A CASE STUDY OF STARBUCKS Admin Remark lease follow the guidelines strictly Do make sure all the points have addressed and cross checked No basic errors such as – grammar, spelling , sentence formation and wrong references will be Downloads HYPERLINK “http://manage.eduhelpsydney.com/writer/order-download/155e4d741b9e0e” Main File Additional Requirement I need it very good quality and i need it chapter by chapter for feedback. thank you. Files(1) EHUK5774-FinalCopy.docx- Top of Form ×
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1 5 The Demand For Money Arises Out Of The Need To Hold Money As A Medium Of Exchang 3298376
/in Uncategorized /by developer1.5 The ________ demand for money arises out of the need to hold money as a medium of exchange. This demand for money is a function of ________. a) precautionary; interest rates b) transactions; national income c) speculative; interest rates d) speculative; national income e) transactions; interest rates
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1 40 Points You Are Evaluating Two Potential Public Projects To Implement In Your Lo 2420955
/in Uncategorized /by developer1. (40 points) You are evaluating two potential public projects to implement in your local jurisdiction. Both projects have a 10 year time horizon. For Project Alpha, the cost at the end of the first year is $1,000,000 and $100,000 each year thereafter. There are no benefits in the first two years but are constant at $300,000 per year thereafter. For Project Beta, the cost at the end of the first year is $1,000,000 and $90,000 each year thereafter. Benefits are constant at $200,000 per year for all years.
Use Excel to answer the following questions in 2-5 sentences each. You have to provide your answers here even if you are attaching a separate Excel file.
1) What is the NPV for Project Alpha? In your answer explain what NPV is, why it’s useful as well as its shortcomings.
2) Does Project Alpha pass the economic efficiency test based on your answer in part 1)? Why? Explain?
3) What is the BCR for Pro Project Alpha? In your answer explain what BCR is, why it’s useful as well as its shortcomings.
4) Does Project Alpha pass the economic efficiency test based on your answer in part 3)? Why? Explain?
5) What is the IRR for Project Alpha? In your answer explain what IRR is, why it’s useful as well as its shortcomings.
6) Does Project Alpha pass the economic efficiency test based on your answer in part 5)? Why? Explain?
7) Are your conclusions about economic efficiency consistent in parts 2), 4), and 6)? Why or why not? Did you expect this?
8) What is the NPV for Project Beta?
9) Does Project Beta pass the economic efficiency test based on your answer in part 8)? Why? Explain?
10)What is the BCR for Project Beta?
11) Does Project Beta pass the economic efficiency test based on your answer in part 10)? Why? Explain?
12)What is the IRR for Project Beta?
13)Does Project Beta pass the economic efficiency test based on your answer in part 12)? Why? Explain?
14)Are your conclusions about economic efficiency consistent in parts 9), 11), and 13)? Why or why not?
15)Which project would you recommend? Why?
16)What if I told you that Project Alpha is a football stadium and Project Beta is a hospital and your jurisdiction currently does not have either? Would your answer change? Why or why not?
17)Instead of implementing either project, if you invested your $1,000,000 today at a 5% interest rate which compounds quarterly, how much money would you have in 10 years?
2. (28 points) It’s that time of the year and you have to calculate your federal taxes. (Lucky for you, there are no state or local income taxes where you live.) You have gathered these data about your finances:
i. Wage income = $45,000
ii. Corporate bond interest income = $800
iii. US Treasury bond interest income = $1000
iv. Tax-exempt Interest income from the bond issued by the State of Georgia = $600
v. Total itemized deductions = $12,000
Use the personal exemptions, standard deductions and rate schedule in this link:https://taxfoundation.org/2017-tax-brackets/
First, suppose you are single:
1) What is your marginal tax rate?
2) What is your tax liability?
3) What is your effective tax rate?
4) How would a $1,000 tax credit change your tax liability and effective tax rate?
Now, suppose you are married and your spouse has no wage or interest income and your joint itemized deductions are still $12,000:
5) What is your joint marginal tax rate?
6) What is your joint tax liability?
7) What is your joint effective tax rate?
8) How would a $1,000 tax credit change your tax liability and effective tax rate?
Now, suppose you are married and your spouse has the exact same income profile as you and your joint itemized deductions are still $12,000:
9) What is your joint marginal tax rate?
10)What is your joint tax liability?
11) What is your joint effective tax rate?
12)How would a $1,000 tax credit change your tax liability and effective tax rate?
13)Do you think this is fair? Does this make you want to get married or stay single?
14)Is this tax system progressive, regressive, or proportional? Why?
3. (14 points) A small town has a property tax base with an appraised value of $400,000 of taxable real property, $80,000 of taxable personal property, and $50,000 of non-taxable property. The assessment ratio is 40% for this local government. The homestead exemption is relatively small but reduces the assessed value by $50,000. The town estimates that the budgetary needs at $120,000.
1) What statutory tax rate would allow the town to meet its budgetary obligations?
2) Given the statutory tax rate you found in part 1), what is the effective property tax rate for this town?
3) You are contemplating about moving to this town. The property you are interested in buying has a market value of $150,000. How much would you pay in property taxes to this school district?
4) How would your answer in part 3) change if you discovered that you could get a $5,000 exemption against the assessed value of your new home?
5) Would your property tax bill affect your decision to move to this town? Why or why not? What other information might be helpful in making your decision?
6) Suppose that the property tax rate you found in part 1) increases by 3%. What is the new rate and your new tax bill?
7) Suppose that the property tax rate you found in part 1) increases by $1 per $100 of assessed value. What is the new rate and your new tax bill?
4. (12 points) Suppose you are in the 25% federal income tax bracket and want to invest $100,000 in an interest-earning asset.
1) Which asset would you invest in and why:
i. AAA rated (highest rating) municipal bond with a 4% yield or
ii. AAA rated (highest rating) corporate bond with a 5.4% yield
iii. U.S. treasuries with a 5.5% yield? Explain.
2) Suppose you get a large pay raise and your marginal income tax rate is now 39.6%. How would your answer change in part 1)?
3) What do you conclude about the value of tax-exemption for different income groups?
4) Do you think this type of tax preference is fair?
5) Would you answer change if the corporate bond rating declined to below investment grade? Why?
6) Would your answer change if the municipal bond rating declined to below investment grade? Why?
5. (6 points) Explain the role of financial statement analysis, Balance Sheet and Income Statement, and financial ratios in evaluating financial health of a jurisdiction or an organization in 1-2 paragraphs.
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1 4 Points Professor Crewel Would Like To See The Distribution Of Questions Difficul 2379462
/in Uncategorized /by developer1. (4 points) Professor Crewel would like to see the distribution of questions difficulty among the various topics.
For each question list the topic title, the question id, the questions status, and the question difficulty. Sort the results for question difficulty. Within question difficulty sort the questions by topic title. Use a join. Do not use the INNER JOIN keywords.
SELECT A. Title, B. QuestionId, B. Status, B. Difficulty from Topics A., Question B WHERE
A. Topicid =B. Topicid ORDER BY B. Difficulty, A. Title how do u show The result of the SELECT statement
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CITD 120 — SQL Concepts Homework Assignment 4 40 points NOTE: The Course Quizzes database you are using for this assignment is a test database and contains much less data than would be in the production database used to run the company. It has been made smaller to make it easier for you to check that your SELECT statement retrieves the correct data. However, retrieving the correct data from the testing database is not a guarantee that the SELECT statement is correct. You must write your commands as if they were run against the larger database which has different data than the testing database you are using. The ER Diagram for the Course Quizzes database is shown below. For EACH TASK for this assignment submit the following: a. The SELECT statement you used. b. The result of the SELECT statement. TASKS: (4 points) Professor Crewel would like to see the distribution of questions difficulty among the various topics.For each question list the topic title, the question id, the questions status, and the question difficulty. Sort the results for question difficulty. Within question difficulty sort the questions by topic title. Use a join. Do not use the INNER JOIN keywords. SELECT A. Title, B. QuestionId, B. Status, B. Difficulty from Topics A., Question B WHERE A. Topicid =B. Topicid ORDER BY B. Difficulty, A. Title 2.(4 points) Professor Crewel would like to know the text of the questions she has used on quiz 2.List the question text for the questions for quiz 2. Do not use a join. Use the IN operator. SELECT Text FROM Questions WHERE QuestionId in (SELECT QuesionId from QuizQuestionns WHERE QuizNum = 2) 3.(4 points) Professor Crewel would like to know which questions she has used on quiz 2.List the question text for the questions for quiz 2. Do not use a join. Use the EXISTS operator. SELECT Text FROM QuestionQ WHERE EXISTS ( SELECT* FROM QuizQuestionsQQ …
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1 A Backhoe Acquired On January 5 At Acost Of 84 000 Has An Estimated Useful Life Of 3529288
/in Uncategorized /by developer1. A backhoe acquired on January 5 at a cost of $84,000 has an estimated useful life of 12 years. Assuming that it will have no residual value, determine the depreciation for each of the first two years (a) by the straight-line method and (b) by the declining-balance method, using twice the straight-line rate. Round to the nearest dollar
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1 7 Read All Of The Classic Papers Cited In Section 1 7 Compose A 500 1000 Word Pape 3164813
/in Uncategorized /by developer1.7 Read all of the classic papers cited in Section 1.7. Compose a 500–1000 word paper (or 8–12 slide PowerPoint presentation) that summarizes the key concepts that emerge from these papers, emphasizi
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1 A Certain Resistor Draws 112 2 V And 6 3 A The Uncertainties In The Measurement Ar 3409050
/in Uncategorized /by developer1. A certain resistor draws 112.2 V and 6.3 A. The uncertainties in the measurement are respectively. Calculate the power dissipated in the resistor and the uncertainty in the power.
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1 A Brief Business Analysis Including Economy Industry And Company Strategies 2864619
/in Uncategorized /by developer1. A brief business analysis (including economy, industry, and company strategies) which forms the basis of your subsequent financial analysis. Note that before doing the business analysis, you should determine the purpose, which can be either equity valuation or credit and risk analysis in this project. The purpose can influence all your subsequent analysis. 2. Identify financial reporting choices and biases that affect the quality and comparability of the company’s financial statements. You may refer to supplemental information from sources other than financial statements. 3. Evaluate the quality of the company’s financial statements and earnings, and recommend appropriate adjustments for such desirable characteristics as sustainability or comparability. 4. Conduct equity valuation or credit and risk analysis based on the adjusted financial data. 5. Prepare adjusted financial statements (statement of financial position, statement of profit and loss/statement of comprehensive income, and statement of cash flows). Purpose 1. Equity valuation OR 2. Credit analysis – -https://www.crisil.com/Ratings/Brochureware/RR_ASSES/CRISIL-Ratings-research-approach-to-financial-ratios_2013.pdf (following indicators to consider for credit analysis and subsequently to adjust the final report for calculation) a. Capital Structure i. Gearing = Total debt /Tangible net worth ii. Total Indebtedness Ratio = Total Outside Liability / Tangible Net Worth iii. BV_TANG = Tangible Book Value / Assets iv. LEVERAGE= Total Liabilities / Total Assets v. LTDEBT= Long Term Debt / Total Assets b. Interest coverage i. Interest coverage ratio = Profit before depreciation, interest, and tax (PBDIT1 )/ Interest and finance charges c. Debt-service coverage ratio i. CDSCR = [Profit after tax + Depreciation + Interest charges – 25 per cent of incremental NWC3 ] / [Debt payable within one year + Interest and finance charges] d. Net worth i. Market value of equity = Number of common shares outstanding *share price e. Profit margin i. PAT margin = Profit after tax / Operating income ii. ROA= Net Income before Extraordinary Items/ Total Assets iii. PROFIT= Net Income before Extraordinary Items / Sales f. Return on capital employed i. RoCE = Profit before interest and tax (PBIT) / [Total debt + Tangible net worth + Deferred tax liability] ii. ROE= Net Income before Extraordinary Items / Book Value of Equity; iii. g. Net cash accruals to total debt i. NCATD = [PAT – Dividend + Depreciation] / Total debt (short and long term, including off-balance-sheet debt) h. Current ratio i. Current ratio = Current assets (including marketable securities)/Current liabilities (including current portion of long-term debt i.e. CPLTD) ii. Gross current assets days = Total current assets related to operations/ operating income iii. i. Others i. PRSTDS= Standard deviation of earnings / Total assets Company Summary 1. Qualitative – A brief business analysis (including economy, industry, and company strategies) 2. Quantitative – a. Growth i. Net increased moderately, growing by X%. This is XX than the XX% growth rate for 2016. b. Cash status – liquidity i. XXX cash flow from operations generated in 2016/17, which was insufficient?? to cover all financing costs or any debt amortization. ii. capital and investment expenditures to meet by new debt, additional equity, or cash depletion, subsidies… c. Outstanding indicators i. Gross Margin ii. Operating expenses iii. Operating Profit iv. Net Profit Margin v. Bad Debt Reserve vi. Debt/TNW vii. Others… 3. Why the indicator is outperformed/underperformed – the focus question/assumption 4. Key notes i. Construction revenue recognition using percentage-of-completion method and allowance for expected losses ii. Impact of challenges in the marine industry on the valuation of assets iii. Valuation of held-to-maturity financial assets iv. Impairment loss sudden decrease v. Sudden growth in 2017 (revenue jump) vi. Contracts – b/s vii. Borrowing – b/s viii. Other reserves – b/s ix. Income tax – i/s x. Equity holder – i/s xi. Re-classification / fair loss – oci xii. Currency loss – oci 4. Reasons and alerts in the financial statements 1. Earning quality 2. Cashflow quality 3. Balance sheet quality
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