Management-AW455

Management-AW455 Online Services

 

1. The management of an amusement park is considering purchasing a new ride for $40,000 that would have have a useful of 10 years and a salvage value of $5,000. The ride would require annual operating costs of $21000 throughout its useful life. The company’s discount rate is 13%. Management is unsure about how much additional ticket revenue the ride would generate particularly since the customers pay a flat fee when they enter the park that entitles them to unlimited rides.Hopefully,the presence of the ride would attract new customers.
 

Required
 

How much additional revenue would the ride have to generate per year to make it an attractive investment?
 

2.An Investment project has the following characteristics
 

Cost of Equipment———-$22,820.
Annual cash inflows——$5000
Internal rate of return—–12%
What is the life of equipment?
 

3.The redford company is planning an investment with the following characteristics
 

Useful Life——-7 Years
Yearly net cash inflow—–$40,000
Salvage Value——-$0.
Internal rate of return—–20%
Discount rate——16%
What is initial cost of equipment?
 

4.LoCo company purchased a machine with an estimated useful life of seven years The machine will
generate cash inflows of $9,000 each year over the next seven years. If the machine has no salvage value at the end of seven years, and assuming the company’s discount rate is 10% what is the purchase price of the machine if the net present value of the investment is $17,000?
 

5.In an effort to reduce costs, WilDo manufacturing corporation is considering an investment in equipment that will reduce defects. This equipment will cost $420,000, will have an estimated useful life of 10 years, and will have and estimated salvage value of $50,000 at the end of 10 years. WilDo’s discount rate is 22% what minimum amount of cost savings will this equipment have to generate per year in each of the 10 years in order for it to be an acceptable project?
 

6.You have deposited $15584 in a special account that has a guaranteed interest rate. If you
withdraw $3700 at the end of each year for 5 years, you will completely exhaust the balance in the account. The guaranteed interest rate is closet to:
 

7.Five years ago, Jim Ranei purchased 600 shares of 9%, $100 par value preferred stock fro $75 per share. Ranei received dividends on the stock each year for five years, and finally sold he stock for $90 per share. Instead of purchasing the preferred stock, Ranei could have invested the finds in a money market certificate yielding a 16% rate of return.
 
You can read more about our case study assignment help services here.
 

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services

 

Reuired
 
Determine whether or not the preferred stock provided at least the 16% rate of return that could have been received on the money market certificate.
 

8.Complete the following two retirement scenarios as instructed.
 
A. Tom is planning for a very early retirement. Tom would like to retire at age 40 and have enough money saved to be able to draw $250,000 per year for the next 40 years. Based on his family history, he thinks it is likely that he will live to age 80. He plans to save by making15 equal annual Instalments (from age 25 to 40) into a fairly risky investment fund that he expects will earn 12% per year. He will leave the money in this fund until it is completed depleted when he is 80 years old. To make his plan work.
 

a. How much money must Tom accumulate by retirement?
 

b. How much money will Tom draw out during his retirement?
 

c. How much must Tom pay into the investment each year for the first 15years.
 

d. Compare the out-of-pocket savings to the investment value at the end of the 15years to the
withdrawals made during Tom’s retirement. Comment below on how these numbers could be so different, if they are. Use full sentences, please.
 

B. Tom’s sister, Janet is also planning for retirement; however, she started saving for her retirement earlier than Tom since she expects that she will need more money for retirement based on the fact that women in the family usually live longer than men. She is also planning for a very early retirement. Janet would like to retire at the age of 40 and have enough money saved to be able to draw$250,000 per year for the next 50 years. Based on family history,she thinks it is likely that she will live to age 90. She plans to save by making 20 equal annual installments(from age 20 to 40) into a fairly risky investment fund that she expects will earn 12% per year. She will leave the money in this fund until it is completed depleted when she is 90 years old. To make his plan work.
 

a. How much money must Janet accumulate by retirement?
 

b. How much money will Janet draw out during his retirement?
 

c. How much must Janet pay into the investment each year for the first 20years.
 

d. Compare the out-of-pocket savings to the investment value at the end of the 20years to the
withdrawals made during Janet’s retirement. Comment below on how these numbers could be so different, if they are. Use full sentences, please. Comment also on how different Janet’s number are from Tom’s, if they are. Again, please use full senetence.
 

e. Comment also on how different Janet’s numbers are from Tom’s if they are. Again please sue full sentences. Make sure to give all reasons that they are different if they are.
 
product code: Management-AW455
 
Looking for best Management-AW455 online ,please click here
 

Summary
User Rating
5 based on 1 votes