1 Which Of The Following Is A Central Issue In Macroeconomics A The Deregulation Of 3075077

1 Which of the following is a central issue in macroeconomics?

A) the deregulation of the banking industry

B) inflation of prescription drug prices

C) the effect of excise taxes on consumers' buying patterns

D) none of the above

2 Which of the following is NOT an issue in macroeconomics?

A) issues relating to the balance of payment

B) the determination of prices in the agricultural sector

C) the relationship between inflation and unemployment

D) the possible effect of budget deficit increases on the level of investment

3 In studying growth theory

A) we focus on the very long run

B) we ignore recessions and booms

C) we assume that all inputs are fully employed

D) all of the above

4 In the very long run

A) the position of the AD-curve depends on the productive capacity of the economy

B) the position of the AS-curve depends on the degree of consumer confidence

C) the position of the AS-curve essentially determines the level of output

D) the position of the AD-curve is affected by changes in efficiency improvements

5 The position of the long-run AS-curve is determined by

A) the full-employment level of output

B) consumer confidence

C) fiscal policy

D) monetary policy

6 In the very long run,

A) the AS-curve is vertical

B) the AS-curve is horizontal

C) the AS-curve is upward sloping

D) the level of output is solely determined by the position of the AD-curve

7 Which of the following is NOT true in the very short run?

A) a shift in the AD-curve will change output but not prices

B) a shift in the AD-curve will change prices but not output

C) the AS-curve is horizontal

D) the position of the AD-curve can be influenced by fiscal policy

8 In the very short run

A) the position of the AD-curve determines the level of output

B) the position of the AD-curve cannot be changed by fiscal or monetary policy

C) a change in monetary policy will affect both the price level and the level of output

D) a change in fiscal policy will not change the level of output

9 In the very short run

A) the level of prices can change quite rapidly, but the level of output is fixed

B) the level of prices is unaffected by the level of output

C) the level of prices and the level of output change with a shift in aggregate demand

D) the level of prices and the level of output are both fixed

10 In the medium run, restrictive fiscal policy will cause

A) a decrease in the level of output but no change in the level of prices

B) a decrease in the level of prices but no change in the level of output

C) a decrease in both the level of prices and the level of output

D) a decrease in real GDP with no change in nominal GDP

11 In the medium run, monetary policy can be used to

A) shift the AD-curve, but this will only result in a price change, not in a change in real GDP

B) affect nominal GDP, but this will not have any effect on real GDP

C) lower the price level while increasing the level of real GDP

D) lower the price level but only at the cost of also lowering the level of real GDP

12 Periods of very high inflation rates

A) can only occur in a situation when the AS-curve is vertical

B) most often are caused by sharp increases in aggregate demand

C) can only occur if the output gap is large

D) most often occur when actual GDP is less than potential GDP

13 Potential GDP is

A) always greater than actual GDP

B) the level of GDP if unemployment is zero

C) equal to nominal GDP adjusted for inflation

D) none of the above

14 Which of the following does NOT affect the trend path of GDP over time?

A) efficiency improvements

B) an increase in population growth

C) fluctuations in the unemployment rate

D) the availability of capital equipment

15 The output gap is defined as

A) nominal GDP minus real GDP

B) potential GDP minus actual GDP

C) nominal GDP adjusted for inflation

D) actual output minus the output that could be produced if the capital stock remained constant

16 One of the main controversies in macroeconomics is

A) whether the AS-curve is really flat in the very short run

B) whether the AD-curve can be shifted by fiscal or monetary policy

C) how steep the medium run AS-curve really is

D) whether the level of output can be changed by an increase in the efficiency of the factors of production

17 If we compare the trend path of GDP with the behavior of actual GDP in the U.S. over the last four decades, we realize that

A) actual GDP never went above potential GDP

B) the output gap was never more than 5 percent of GDP

C) the output gap never was negative

D) none of the above

18 If we look at the growth of real GDP per capita around the world from 1913-98, we see that

A) the U.S. had the highest growth rate among industrial nations

B) the U.S. growth rate was about twice as high as that of the United Kingdom

C) the U.S. growth rate was only about half of Japan's

D) Japan was the only country with a growth rate higher than the U.S.

19 Increases in the rate of inflation

A) generally are inversely related to the output gap

B) are more pronounced in periods of recession

C) always coincide with a decrease in the unemployment rate

D) generally do not occur in periods of high growth in money supply

20 If we look at the behavior of the U.S. CPI over the last four decades we realize that inflation

A) never exceeded 10 percent

B) steadily increased in the 1970s

C) was, on average, lower in the 1990s than in the 1960s

D) was at its highest in the early 1980s

 

 
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1 Which Of The Following Is An Example Of An Indefinite Pronoun A This B Each C Whic 2816584

1. Which of the following is an example of an indefinite pronoun?
A. This
B. Each
C. Which
D. You
2. Which of the following would you most often be able to find in a basic dictionary?
A. An illustrated picture of a word you don’t already know
B. A list of newspapers that frequently use a word you don’t already know
C. A narrative story featuring a word you don’t already know
D. The pronunciation of a word you don’t already know
3. Three of the following statements about a verb are true. Which statement is false?
A. A verb makes a statement about the subject of a sentence.
B. A verb can express a state of being.
C. A verb takes the place of adjectives.
D. A verb can express action.
4. Tom says that a preposition shows position. Ann says that a preposition shows the logical relationship between ideas. Who is correct?
A. Tom is correct.
B. Neither Tom nor Ann are correct.
C. Both Tom and Ann are correct.
D. Ann is correct.
5. Which of the following is an example of a proper noun?
A. justice
B. gavel
C. John G. Roberts, Jr.
D. him
6. In which of the following sentences is an adverb used correctly?
A. She sang beautifully.
B. She is a beautifully singer.
C. She sang the song beautiful.
D. She sang a beautiful song.
7. What is the difference between a clause and a phrase?
A. A clause has a subject and a verb, but a phrase does not.
B. A clause always contains a preposition.
C. A phrase has a subject and a verb, but a clause does not.
D. A phrase always contains a preposition.
8. How can you tell the difference between a compound sentence and a complex sentence?
A. A compound sentence can be separated into two parts that can each stand alone.
B. Complex sentences contain coordinating conjunctions that separate the clauses.
C. Clauses in a complex sentence are always independent.
D. A compound sentence isn’t made of stand-alone clauses.
9. Which of the following contains a correct, standard use of a comma?
A. The warrior ran to safety, but the soldier stood and fought.
B. The warrior, ran to safety but the soldier stood and fought.
C. The warrior ran to safety but, the soldier stood and fought.
D. The warrior ran to safety but the soldier stood, and fought
10. Which of the following is not a common sentence error?
A. Mixed construction
B. Fragment
C. Run-on
D. Prepositional phrase
11. What is the conjunction in the following sentence?
I will take my sister to the concert, provided that she can buy a ticket.
A. provided that
B. to the
C. concert, provided
D. that she
12. In the following sentence, identify the prepositional phrase, and tell whether it acts as an adjective or adverb.
The children found the pictures in the book interesting.
A. The children; adjective
B. in the book; adjective
C. the pictures in; adjective
D. found the pictures; adverb
13. In the following sentence, to which antecedent is the pronoun referring?
After Denise went to the grocery store, she stopped at the gas station.
A. she
B. store
C. Denise
D. station
14. Which of the following is a correct statement about punctuation?
A. The two types of punctuation are beginning and external.
B. Punctuation is usually an extra, unnecessary part of a sentence.
C. Each direct question should end with a period.
D. Punctuation marks show pauses, inflection, and emphasis.
15. Which of the following is an example of a third-person pronoun?
A. Them
B. Us
C. Ourselves
D. Yourselves
16. Which of the following is an example of an infinitive phrase?
A. which had been running
B. running
C. having been running
D. to run
17. Which of the following correctly describes connotation?
A. The meaning of a word that has never changed
B. The pronunciation of a word
C. An implied meaning of word understood by language users
D. A new word added to the dictionary
18. Of the following, which correctly describes the complete predicate of a sentence?
A. All of the sentence except the simple subject
B. The prepositional phrase
C. The verb
D. All of the sentence except the complete subject
19. In the following sentence, which words are nouns?
During their vacation, Sarah and Matthew read the same book.
A. their and book
B. vacation and book
C. Sarah, Matthew, the, and book
D. vacation, Sarah, Matthew, and book
20. Which of the following is not a synonym of the word beautiful?
A. Stunning
B. Gorgeous
C. Attractive
D. Gritty

 
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1 Which Of The Following Is Best Defined As A Consciously Coordinated Social Unit Co 2860564

LDR 531 Final Exam

1) Which of the following is best defined as a consciously coordinated social unit, composed of two or more people, which functions on a relatively continuous basis to achieve a common goal or set of goals?

a. party

b. unit

c. team

d. community

e. organization

2) Over the past 2 decades, business schools have added required courses on organizational design to many of their curricula. Why have they done this?

a. Managers no longer need technical skills in subjects such as economics and accounting to succeed.

b. There is an increased emphasis in controlling employee behavior in the workplace.

c. Managers need to understand human behavior if they are to be effective.

d. These skills enable managers to effectively lead human resources departments.

e. A manager with good people skills can help create a pleasant workplace.

 
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1 Which Of The Following Is Are The Part Of Operating System A Kernel Services B Lib 1429742

1. Which of the following is/ are the part of operating system? A) Kernel services B) Library services C) Application level services D) All of the above 2. The system of …………… generally ran one job at a time. These were called single stream batch processing. A) 40’s B) 50’s C) 60’s D) 70’s 3. In …………. generation of operating system, operating system designers develop the concept of multi-programming in which several jobs are in main memory at once. A) First B) Second C) Third D) Fourth 4. State True or False. i) In spooling high speed device like a disk is interposed between running program and low-speed device in Input/output. ii) By using spooling for example instead of writing directly to a printer, outputs are written to the disk. A) i-True, ii-False B) i-True, ii-True C) i-False, ii-True D) i-False, ii-False 5. Which of the following is/are the functions of operating system? i) Sharing hardware among users. ii) Allowing users to share data among themselves. iii) Recovering from errors. iv) Preventing users from interfering with one another. v) Scheduling resources among users. A) i, ii, iii and iv only B) ii, iii, iv and v only C) i, iii, iv and v only D) All i, ii, iii, iv and v 6. ……………… executes must frequently and makes the fine grained decision of which process to execute the next. A) Long-term scheduling B) Medium-term scheduling C) Short-term scheduling D) None of the above 7. With ……………. a page is brought into main memory only when the reference is made to a location on that page. A) demand paging B) main paging C) prepaging D) postpaging 8. ………………….. provides a larger sized of virtual memory but require virtual memory which provides multidimensional memory. A) Paging method B) Segmentation method C) Paging and segmentation method D) None of these 9. …………… is a large kernel containing virtually the complete operating system, including, scheduling, file system, device drivers and memory management. A) Multilithic kernel B) Monolithic kernel C) Micro kernel D) Macro kernel 10. …………… is a large operating system core provides a wide range of services. A) Multilithic kernel B) Monolithic kernel C) Micro kernel D) Macro kernel

Attachments:

OS-Set1

 
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1 Which Of The Following Is Incorrect About The Statement Of Cash Flows A It Is The 2778639

1.Which of the following is incorrect about the statement of cash flows?a.It is the third basic financial statement.b.It provides information about cash receipts and cash payments of an entity during a period.c.It reconciles the ending cash account balance to the balance as per the bank statement.d.It provides information about the operating, investing and financing activities of the business.

 
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1 Which Of The Following Is Not Considered An Attest Engagement A A Compilation B A 2803308

1- Which of the following is not considered an attest engagement:

a- A compilation.

b- A review.

c- An agreed upon procedures engagement.

d- All of the above are attested agreements.

2- Which of the following would have the greatest chance of resulting in a lawsuit against the auditor?

a-Incorrect rejection of an accountbalance

b-Incorrect acceptance of an accountbalance

c-A type oneerror

d-Using variables sampling to determine the correct balance in accountspayable

3- An account balance is $300,000 and there are 25 items in the account, six of which have balances that equal or exceed $15,000. The auditor plans to use a monetary-unit sampling plan with systematic sample selection. To ensure that all accounts with balances of at least $15,000 are selected, the sampling interval should be

a- 6

b- 20

c- 12, 000

d- 15,000

 
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1 Which Of The Following Is Least Likely To Affect The Net Gain To Migration A An Im 3300687

1. Which of the following is least likely to affect the net gain to migration? A. An improvement in economic opportunities in the destination state. B. An improvement in economic opportunities in the source state. C. An increase in migration costs. D. Changing one’s preferences for living in different places. E. Government spending. 2. Variation in wages across individuals is called A. wage dispersion. B. the mean wage. C. the Gini coefficient. D. the perfect-equality Lorenz curve. E. the positively-skewed wage distribution. 3. The positive correlation between ability and human capital investments “stretches out” wages in the population, generating what? A. A positively skewed wage distribution. B. A negatively skewed wage distribution. C. An inconsistent wage distribution. D. A uniform wage distribution. E. A symmetric wage distribution. 4. An approximate Lorenz curve shows A. the maxium and minimum wage gaps. B. the relationship between income and tax revenue. C. the share of income received by age group. D. the relationship between income and earnings potential. E. the cumulative share of income earned by quintiles of households. 5. Higher values of the Gini coefficient are associated with A. greater education inequality. B. greater income inequality. C. less income inequality. D. greater labor mobility.

 
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1 Which Of The Qualities Required For A Good Document Is Violated In The Following P 561005

1. Which of the qualitiesrequired for a good document is violated in the following passage?

You now have a good ideaof the overall design and structure of documents, both short and multipage.

Unfortunately, good looks,proper structure, and creative design aren’t enough to garantee an

effective document.

A.Clarity C.Conciseness

B.Spelling D.Incorrect hyphenation

2. In which editor’sreference text would you find the following entry?

proofread,v.t., v.i.— proofread, proofreading. To read, as printers’ proofs,in order to detect and mark

errors to be corrected.—proof-read-er,n.

A.ThesaurusC.Style manual

B.DictionaryD.Style sheet

3. The importance ofthoroughly editing and proofreading a document can be stated as which of the

following?

A.The goalof a high-quality, well-written document is virtually impossible to achievewithout

performing these twofunctions in a professional manner.

B.Proofreadingmechanicals by someone other than the electronic publisher isn’t necessaryunless

multipage documents areinvolved.

C.The timeto begin the editing process is when a document’s final proofs are printed forinspection.

D.The goalof a high-quality, error-free document can never be achieved unless separatepeople

perform these twofunctions.

4. How can you find outwhich commands the function keys will send to your computer?

A.Thecommands appear right on the keys.

B.Theuser’s manual for the software program will tell you.

C.Functionsare similar for all programs.

D.Functionkeys appear only on typewriter keyboards.

5. The illustration belowis an example of a(n)

A.editorialstyle sheet. C.specification sheet.

B.stylemanual. D.layout style sheet.

6. The key on a computerkeyboard that lets users depart from an unwanted situation is the ______ key.

A.Alt C.Esc

B.Ctrl D.End

7. The editor/proofreaders’mark =/ means

A.insert adash. C.move left.

B.insert ahyphen. D.align vertically.

66 Examination

8. Find the error in thefollowing lines of text.

A computer keyboard is aninput device similar to a typewriter keyboard. An input device allow you to

get data into yourcomputer for processing.

A.In thefirst sentence, the verb is should be replaced with the plural are.

B.In thesecond sentence, the verb allow should be singular like the noun device.

C.In thefirst sentence, the noun typewriter should be hyphenated to read type-writer.

D.In thesecond sentence, the noun computer should be replaced with the pluralcomputers.

9. Except in short-termmarketing material, using which of the following is a sure way to assure your

document will soon appearoutdated?

A.Unnecessarywords C.Trendy words

B.Adjectivesand adverbs D.Inclusive language

10. Generally speaking,the ______ should focus mainly on clarity and the ______ should focus mainly

on accuracy.

A.editor/desktoppublisher C.editor/proofreader

B.proofreader/editorD.desktop publisher/proofreader

11. When an editor isobliged by his or her place of employment to apply certain preset conventionsto

the text and layout of adocument, the editor is said to be working according to a(n)

A.editorialstyle sheet. C.electronic style sheet.

B.specificationsheet. D.house style sheet.

12. What’s the maindifference between mechanical and substantive editing?

A.Mechanicalediting involves closely checking a document for style matters, whilesubstantive

editing involves rewritingor reorganizing the text.

B.Mechanicalediting involves rewriting or reorganizing the text, while substantive editinginvolves

closely checking adocument for style matters.

C.Mechanicalediting is done by proofreaders, while substantive editing is done by editors.

D.Mechanicalediting involves two or more people reading a document at one time, whilesubstantive

editing involves only oneperson.

13. The purpose of aneditorial style sheet is to help the editor

A.watch formisspelled words.

B.monitorword usage.

C.documentthe errors made by the author.

D.watch forand correct improper grammar.

14. Which proofreaders’mark and marginal symbol would you use to indicate the needed correction in

the following lines oftext?

Using an editorial stylesheet during the reading of a manuscript permits editor’s to monitor the usage

of special words and wordforms.

15. How is an electronicspell checker likely to read and deal with the following sentence?

The four horseman of theApocalypse are mysthical characters.

A.Theprogram will pause at mysthical and automatically replace it with mythical.

B.Theprogram will pause at horseman and automatically replace it with horsemen.

C.Theprogram will pause at horseman and suggest the spelling horsemen.

D.Theprogram will pause at mysthical and suggest the spelling mythical.

16. The reason forinsisting on proper grammar in nonfiction documents is to

A.impressreaders with the author’s education.

B.promotethe use of appropriate grammar in written documents.

C.present aprofessional image to readers and critics.

D.facilitateclear communication of the document’s message.

17. To learn the properway to set up a table of contents, editors can use a

A.stylemanual. C.thesaurus.

B.dictionary.D.grammar checker.

18. Editing andproofreading are sometimes called “hidden skills” because

A.whenthey’re done well, readers are almost completely unaware of them.

B.the namesof the editors and proofreaders aren’t listed on the title page.

C.authorsgenerally don’t appreciate the contribution of editors and proofreaders totheir document.

D.whenthey’re done well, authors are completely unaware that their documents havebeen revised.

19. When a proofreaderwrites stet in the margin of a document, the person responsible for inputting

corrections should

A.insert aquestion mark at the end of that text line.

B.let thetext with dots under it stand as is.

C.set thetext with dots under it in italics.

D.wait forthe rewritten version from the author.

20. Which of the qualitiesrequired by a good document is violated in the following passage?

Every member of the familyhas chores to do each day. Fred and Tom feed the horses and cows.

Chopping wood is hissecond responsibility.

A.Clarity C.Conciseness

B.ConsistencyD.Spelling

 
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1 Which Of The Following Statements Is True Regarding A Statement Of Cash Flows A A 2434362

1.Which of the following statements is TRUE regarding a statement of cash flows?

A. A statement of cash flows measures the profitability of a company using the cash basis of accounting.

B. Two different methods may be used to compute the net cash flows from operating, investing, and financing activities.

C. Noncash investing and financing activities need to be disclosed under “other activities.”

D. The statement of cash flows reports the changes in cash and cash equivalents.

2.Which of the following is a cash equivalent?

A. Accounts receivable

B. Certificates of deposit that mature in less than three months

C. Certificates of deposit that mature in one year or less

D. Prepaid expenses

3.Which of the following activities is an operating activity?

A. Payment on the principal portion of a bank loan

B. Collection of cash from issuing stock

C. Payment of interest on a bank loan

D. Payment of cash dividends

4.Which of the following activities would NOT be considered an investing activity?

A. Issuance of common stock

B. Purchase of used equipment

C. Sale of land

D. Sale of a long-term investment

5.Which of the following activities is a financing activity?

A. Purchase of land by issuing stock

B. Payment of cash dividends

C. Purchase of land for cash

D. Purchase of inventory for cash

6.On a statement of cash flows, the net increase in cash was $24,000. Cash provided from operations was $30,000. If the net cash outflow from investing activities was $7,000, then what was the net cash flow from financing activities?

A. net inflow of $1,000

B. net outflow of $1,000

C. net inflow of $13,000

D. net outflow of $13,000 ? ?

7.Using the following information for Stewart Auto, Inc., calculate the net cash flow from operating activities using the indirect method. ? ?

Net income $150,000 ?

Depreciation expense 10,000 ?

Increase in accounts receivable 4,000 ?

Decrease in inventory 5,000 ?

Increase in accounts payable 8,000 ?

Loss on sale of equipment 7,000 ? ?

The net cash provided by operating activities is:

A. $142,000.

B. $144,000.

C. $160,000.

D. $176,000.

8. Which of the following statements is TRUE regarding the indirect method of preparing a statement of cash flows?

A. A decrease in inventory is subtracted from net income.

B. A loss on the sale of an investment is added to net income.

C. Depreciation expense is subtracted from net income.

D. An increase in wages payable is subtracted from net income.

9.Which of the following statements is TRUE regarding the direct method of preparing a statement of cash flows?

A. Depreciation expense is added as a reconciling item.

B. It is easier and less costly to prepare than the indirect method.

C. A supplementary schedule reconciling net income to the cash basis must also be provided.

D. All of the statements above are correct.

10.Which of the following is an example of noncash investing and financing activity that is disclosed in a supplementary schedule accompanying the statement of cash flows or in a footnote to the financial statements?

A. Selling goods on credit

B. Paying the amount due a creditor

C. Purchasing equipment in exchange for a long-term note

D. Gain on the sale of land

 
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1 Which Projects Would You Recommend Handstar Pursue Based On The Npv Approach 2857847

Handstar Inc.
Handstar Inc. was created a little over four years ago by two college roommates to
develop software applications for handheld computing devices. It has since grown to ten
employees with annual sales approaching $1.5 million. Handstar’s original product was
an expense report application that allowed users to record expenses on their handheld
computers and then import these expenses into a spreadsheet that then create an expense
report in one of five standard formats. Based on the success of its first product, Handstar
subsequently developed three additional software products: a program for tracking and
measuring the performance of investment portfolios- a calendar program, and a program
that allowed users to download their email messages from their PC and read them on
their handheld computers.
The two founders of Handstar have recently become concerned about the competitiveness
of their offerings, particularly since none of them has been updated after their initial
launch. Therefore, they asked the directors of product development and marketing to
work together and prepare a list of potential projects for updating Handstar’s current
offerings as well as to develop ideas for additional offerings. The directors were also
asked to estimate the development costs of the various projects, product revenues, and the
likelihood that Handstar could retain or obtain a leadership position for the given product.
Also, with the increasing popularity of the Internet, the founders asked the directors to
evaluate the extent to which the products made use of the Internet.
The product development and marketing directors identified three projects related to
updating Handstar’s existing products. The first project would integrate Handstar’s current
calendar program with its email program. Integrating these two applications into a single
program would provide a number of benefits to users such as allowing them to
automatically enter the dares of meetings into the calendar based on the content of an
email message. The directors estimated that this project would require 1250 hours of
software development time. Revenues in the first year of the product’s launch were
estimated to be $750,000. However, because the directors expected that a large
percentage of the users would likely upgrade to this new product soon after its
introduction, they projected that annual sales would decline by 10 percent annually in
subsequent years. The directors speculated that Handstar was moderately likely to obtain
a leadership position in email/calendar programs if this project were undertaken and felt
this program made moderate use of the Internet.
The second project related to updating the expense report program. The directors
estimated that this project would require 400 hours of development time. Sales were
estimated to be $250,000 in the first year and to increase 5 percent annually in subsequent
years. The directors speculated that completing this project would almost certainly
maintain Handstar’s leadership position in the expense report category, although it made
little use of the Internet.
The last product enhancement project required enhancing the existing portfolio tracking
program. This project would require 750 hours of development time and would generate
first-year sales of $500,000. Sales were projected to increase 5 percent annually in
subsequent years. The directors felt this project would have a high probability of
maintaining Handstar’s leadership position in this category and the product would make
moderate use of the Internet.
The directors also identified three opportunities for new products. One project was the
development of a spreadsheet program that could share files with spread-sheet programs
written for PCs. Developing this product would require 2500 hours of development time.
First-year sales were estimated to be $1,000,000 with an annual growth rate of 10
percent. While this product did not make use of the Internet, the directors felt that
Handstar had a moderate chance of obtaining a leadership position in this product
category.
The second new product opportunity identified was a Web browser. Developing this
product would require 1875 development hours. First-year sales were estimated to be
$2,500,000 with an annual growth rate of 15 percent. Although this application made
extensive use of the Internet, the directors felt that there was a very low probability that
Handstar could obtain a leadership position in this product category.
The final product opportunity identified was a trip planner program that would work in
conjunction with a PC connected to the Web and download travel instructions to the
user’s handheld computer. This product would require 6250 hours of development time.
First-year sales were projected to be $1,300,000 with an annual growth rate of 5 percent.
Like the Web browser program, the directors felt that there was a low probability that
Handstar could obtain a leadership position in this category, although the program would
make extensive use of the Internet.
In evaluating the projects, the founders believed it was reasonable to assume each product
had a three-year life. They also felt that a discount rate of 12 percent fairly reflected the
company’s cost of capital. An analysis of pay-roll records indicated that the cost of
software developers is $52 per hour including salary and fringe benefits. Currently there
are four software developers on staff, and each works 2500 hours per year.
1. Which projects would you recommend Handstar pursue based on the NPV approach?
2. Assume the founders weigh a project’s NPV twice as much as both obtaining/retaining
a leadership position and making use of the Internet. Use the weighted factor scoring
method to rank these projects. Which projects would you recommend Handstar
pursue?
3. In your opinion is hiring an additional software development engineer justified?

Attachments:

Handstar-Inc.pdf

 
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