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.

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1.3 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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1.3 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. .A flat turbine agitator with a disk having six blades is installed in a tank. The tank diameter is1.83 m, the turbine diameter is 0.61 m, Dt = H, and the width W is 0.122 m. The tank contains four baffles, each having a width of J = 0.15 m. The turbine is operated at 90 rpm and the liquid in the tank has a viscosity of 10 cps and a density of 929 kg/m3. It is desired to design a small pilot plant unit with a vessel volume of 2 L so that the effects of various process variables on the system can be studied in the laboratory. The rates of mass transfer appear to be important in this system, so the scale down should be on this basis. Design the new system specifying sizes, rpm and power.
2.An ideal gas flows isetropically through a converging-diverging nozzle. At a section in the converging portion of the nozzle, A1= 0.1 m2, p1= 600 kPa (abs), T1= 20 ? C, and Ma1 = 0.6. For section (2) in the diverging part of the nozzle, determine A2, p2 and T2 if Ma2 = 3 and the gas is air.
3.Air is injected into a 50 m long horizontal pipeline (of 42 mm diameter) carrying a clay slurry of density 1452 kg/m 3. The rheological behaviour of the slurry follows the power-law model, with m = 5.55 Pa sn and n = 0.35. The volumetric flow rates of air and liquid are 7.48 and 1.75 m3/h, respectively. The air is introduced into the pipeline at 20°C and at a pressure of 1.2 bar. Ascertain the flow pattern occurring in the pipeline. Estimate (a) the average liquid holdup at the midpoint, (b) the pressure gradient for the two phase flow, (c) the maximum achievable drag reduction and the air velocity to accomplish it.

 

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1. a firm’s workforce is on average 20 years away from retiring. The firm’s workers Suppose could find similar work in other companies earning $40,000 per year. Also, suppose that workers who shirk their work have a .30 chance of being dismissed.

a. For simplicity, assume that workers could find a job in an alternative company with no search costs. What would the firm have to pay to impose shirking costs of $60,000 on the average worker during his (her) work life expectancy? Show your work.

b. Find three salary-probability of dismissal combinations that would yield shirking costs of $60,000 for the average worker over his (her) work life expectancy.

2. Suppose a firm is considering installing cameras and using spy software on the computers at the office to monitor its workers in addition to hiring additional supervisors. The firm estimates that increasing the probability of catching workers who shirk by .01 costs the company $10,000 per year. For example, in the problem above when going from 0.30 to 0.31, it would cost the firm $10,000 per year. How much would the firm have to spend in order to impose shirking costs of $75,000 on its average worker? Show your work. Assume that

· the firm’s work force is on average 20 years away from retiring

· that the firm’s workers could find similar work in other companies earning $40,000

· that the company currently pays its workers $42,000

· and that the current probability of catching workers who shirk is 0.30,

 

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