The service unit or output for this department is the number of procedures performed. A static budget was prepared at the beginning of the year. You are now tasked with examining that budget in relation to actual experience. The relevant data are included in Table 17-18. The department manager is pleased because they have a favorable $120,000 cost variance. Evaluate the effectiveness claims of the […]

As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities.  You have agreed to provide a detailed report illustrating the use of several techniques for evaluating capital projects including the weighted average cost of capital to the firm, the anticipated cash flows for the projects, and the methods used for project selection.  In […]

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $11.90 million. This investment will consist of $2.20 million for land and $9.70 million for trucks and other equipment. The land, all trucks, and all other equipment is expected to be sold at the end of 10 years at […]

Capital Co. has a capital structure, based on current market values, that consists of 44 percent debt, 10 percent preferred stock, and 46 percent common stock. If the returns required by investors are 11 percent, 12 percent, and 16 percent for the debt, preferred stock, and common stock, respectively, what is Capital’s after-tax WACC? Assume that the firm’s marginal tax rate is 40 percent. (Round […]

Capital Budget Analyze the following scenario: River County is planning several capital acquisitions for the coming year.  These include the purchase of two new garbage trucks at $150,000 each, one new bulldozer at $240,000, three new riding lawn mowers at $16,000 each, and construction of an activity center in the part for $650,000.  The expected lifetime of the various capital items is 10 years for […]

your role is as a consultant with ten years experience in the public financial management industry.  After reviewing the course concepts you will identify several issues that directly connect to the written assignment.  In addition to reading the assigned text materials to develop knowledge about the concepts, a thorough master’s level education requires the development of effective research skills.  In this assignment you will work […]

A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 45% of sales. Indirect incremental costs are estimated at $95,000 a year. The project requires a new plant that will cost a total of $1,500,000, which will be […]

 Your firm’s strategic plan calls for a net increase in total assets of $100 million during the next five years, which represents an annual compounded growth rate of 15 percent. Equity growth is also projected to be 15 percent per year. Assume that the firm’s Total Asset Turnover will average 1.0 in each of the five years and Equity Financing percentages will remain constant at […]

Focus of the Final Paper The Final Research Paper should address a topic that is connected to the content of this course (elements and requirements of a valid contract; issues related to real and personal property; intellectual property; employment law; and/or, international law and the global marketplace.)  This paper should focus on a legal issue or situation that relates to a business environment or activity […]

Impact of Devaluation. The inflation rate in Yinland was 14 percent last year.  The government of Yinland just devalued its currency (the yin) by 40 percent against the dollar.  Even thought it produces products similar to the United States, it has much trade with the United States and very little trade with other countries. It presently has trade restrictions imposed on all non-U.S.countries.  Will the […]