Organizational issues and solutions | Human Resource Management homework help

 

Overview

Leaders address issues and propose solutions. As a leader, you’ll need to stay on top of events that may facilitate or hinder productivity. You must create and implement solutions to address these issues.

In the assignment preparation, you chose an organization, described its organizational issue, and identified how it hinders organization efficiency. This assignment exposes you to complex modern organizational challenges. The solutions you devise should reflect your learning and research of organizational and individual influences in the workplace.

Instructions

The new CEO has selected your consulting firm to provide an analysis of the organizational efficiency.

Write a 2–3 page, double-spaced paper in which you will present to the CEO your findings during your research steps. You must propose strategic solutions in your paper to include the following:

  1. Describe the organization and the issue to resolve:
    • Provide a brief description of the organization you selected.
    • Present the organizational issue that adversely affected productivity and that you, the consultant, will review and resolve.
    • This information can be summarized from your assignment preparation last week. Make sure to incorporate any feedback that you received from your instructor.
  2. Analyze current corporate culture:
    • How has the current corporate culture facilitated the development of the current issue? Research the organization, dig into the culture, and analyze how it contributed to this issue. Hint: Review the mission and vision statements as well as the corporate Web site.
  3. Identify areas of weakness:
    • What are the organization’s areas of weakness as they relate to the issue? Apply your research on organizational behavior approaches to aspects of corporate culture—such as diversity, teamwork, and motivational strategies—to help identify the areas of weakness.
  4. Propose solutions:
    • What organizational practices would you modify? What solutions would you recommend to management that would help solve the identified weaknesses? As a consultant, you will identify the suggestions and solutions you would present to the organization’s leadership with regard to modifying current organizational practices to resolve the issue.
  5. References and citations:
    • Provide at least two quality resources such as the course textbook, a company Web site, business Web sites (CNBC, Bloomberg, etc.), resources from the Strayer Library, and/or outside sources. Note: Wikipedia and Web-based blogs do not qualify as credible resources.
    • You can find in-depth and quality company information using the Nexis Uni database through the Strayer University Online Library.
    • In-text citations are required when paraphrasing or quoting another source.
  6. Formatting and writing standards:
    • This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course.

Confidentiality:Since you will be addressing real issues in real organizations in your assignments, it is important to respect confidentiality. Feel free to use an alias for any company or individuals you might mention in your assignments. Remember that all discussions about these organization should only occur within this course and not be shared with people outside the course.

The specific course learning outcome associated with this assignment is:

  • Propose a solution for an organizational culture issue.

Inferno translations comparison discussion post

TWO 450-500 words post

Write two discussion post comparing the different translations of Inferno. (each post should include all translation comparison). Please be specific and quote words and sentences when analyzing.

1. Translations of Inferno

While reading these translations try to take note of these three categories to help characterize them:

Language: What kind of language does the translator use in their translation?  Is it high/low, or a mix (as in Dante) is it easy to read or difficult, etc.  take note of specific moments whenever possible.

Poetry: How has the translator chosen to represent Dante’s poetry?  Have they attempted to reproduce his prosody, or made up their own approach?

Intervention/Interpretation: Do you see moments in which the translator is making a choice that seems to differ from what we’ve read in Durling?

Inf. Canto 1; Henry Francis Cary (1814) (Links to an external site.) http://www.gutenberg.org/cache/epub/1008/pg1008-images.html

Inf. Canto 5; Henry Wadsworth Longfellow (1867)

https://www.gutenberg.org/files/1001/1001-h/1001-h.htm#CantoI

2. Foundational Statements in Translation Theory

In lecture over the next three weeks I will also give an overview of approaches to translating poetry more generally, to give some context for our discussions of Dante in translation.  We will start with some (short) foundational statements about translating poetry.

John Dryden, “From the Preface to Ovid’s Epistles”  (attached in files)

Actions

Roman Jakobson, “On Linguistic Aspects of Translation”Preview the document

Both Dryden and Jakobson put forward schematic definitions of different kinds of translation; I will go over them in lecture but as you are reading pay attention to the terms they propose. 

Unit 2 assessment criminal law

Question 1         When were most inchoate crimes recognized in American law?                 The fourteenth century 

The sixteenth century 

The eighteenth century 

The twentieth century
           

 Question 2         Which portion of an attempted crime is not enough to sustain a conviction?              

Mere confession 

Mere preparation 

Mere solicitation 

Mere corroboration
 
           Question 3         Which of the following actions is most likely to be ruled a “substantial step” in the commission of an attempt?            

 Buying a book on cleaning up crime scenes

 Purchasing a personal firearm 

Taking out a life insurance policy

 Lying in wait for the victim
   
           Question 4         Which concept holds that acts remotely leading toward a crime are not liable, but acts immediately connected to it are?              

The mere preparation test 

The proximity approach 

The coinciding test

 The concurrency approach

           Question 5          Which of the following is an inchoate crime?                 Murder 

Rape 

Solicitation 

Prostitution

Stanford rosenberg computing | Social Science homework help

9.11 Stanford Rosenberg Computing wants to establish an assembly line for producing a new product, the Personal Digital Assistant (PDA). The tasks, task times, and immediate predecessors for the tasks are as follows:

Task                Time               Immediate Processor

            A                     12                   

            B                     15                    A

            C                     8                      A

            D                     5                      B,C

            E                      20                    D

 

 

 

Rosenberg’s goal is to produce 180 PDAs per hour.

 a) What is the cycle time?

b) What is the theoretical minimum for the number of workstations that Rosenberg can achieve in this assembly line?

c) Can the theoretical minimum actually be reached when workstations are assigned?

 

 9.13 Sue Helms Appliances wants to establish an assembly line to manufacture its new product, the Micro Popcorn Popper. The goal is to produce five poppers per hour. The tasks, task times, and immediate predecessors for producing one Micro Popcorn Popper are as follows:

 

Task                Time               Immediate Predecessors

A                     10                   

            B                     12                    A

            C                     8                      A,B

            D                     6                      B,C

            E                      6                      C

            F                      6                      D,E

 

 

a) What is the theoretical minimum for the smallest number of workstations that Helms can achieve in this assembly line?

b) Graph the assembly line and assign workers to workstations. Can you assign them with the theoretical minimum?

 c) What is the efficiency of your assignment?

 

9.15 The following table details the tasks required for Indiana-based Frank Pianki Industries to manufacture a fully portable industrial vacuum cleaner. The times in the table are in minutes. Demand forecasts indicate a need to operate with a cycle time of 10 minutes.

 

 

 

Activity           Activity Description              Immediate Predecessors                   Time  

A                     Attach wheels to tub                                                                      5

B                     Attach motor to lid                                                                       1.5

C                     Attach battery pack                            B                                             3

D                     Attach safety cutoff                           C                                             4

E                      Attach filters                                       B                                             3

F                      Attach lid to tub                                 A, E                                         2

G                     Assemble attachments                                                                               3

H                     Function test                                       D, F, G                                    3.5

I                       Final inspection                                   H                                             2

J                       Packing                                               I                                               2

 

a) Draw the appropriate precedence diagram for this production line.

b) Assign tasks to workstations and determine how much idle time is present each cycle.

c) Discuss how this balance could be improved to 100%.

d) What is the theoretical minimum number of workstations?

 

Creating your ideal state | Political Science homework help

Instructions
Your country just overthrew its dictator, and you are the newly elected President. Unfortunately, due to the divisions in the country and the years of war, economic, military, and political structures are non-existent. A group of loyalists to the old dictator have been detonating bombs, murdering civilians, assassinating leaders, and terrorizing towns with help from a neighboring country’s dictator.

Create a comprehensive plan for your new government. While creating this government identify the governing style, functions of various branches of government, principles that govern leaders, the maintaining of public good, which economic structure is most beneficial to your citizens, at least two domestic programs, ways to create national unity, ways to combat terrorism and violence, and international organizations to join. (See rubric for specific ways to meet the requirements of the paper.)

Paper headings:

  • Introduction (1 paragraph)
    • Introduce your country
    • Briefly outline all of the parts of the paper
  • Domestic Concerns (1-2 pages)
    • Identify governing style and principles that correlate to this style
    • Identify the branches of government and its functions
    • Development of two public good domestic programs and how they will meet the public good
    • Economic structure and reason why this should be used
    • Socializing citizens is noted with rationale for how it creates national unity
  • Foreign Concerns (1-2 pages)
    • Two international organizations are noted, one for economics and one for security
    • Descriptions of both organizations
    • Rationales for joining these organizations
    • Steps to joining
    • Two ways your country will combat the neighboring country’s terrorist threat and the domestic threat
    • Two ways these will be effective
  • Conclusion (1 paragraph)

Writing Requirements (APA format)

  • Length: 3-4 pages (not including title page or references page)
  • 1-inch margins
  • Double spaced
  • 12-point Times New Roman font
  • Title page
  • References page (minimum of 2 scholarly sources)

Week 7 Assignment: Essay – Creating Your Ideal State (1)

Week 7 Assignment: Essay – Creating Your Ideal State (1)

CriteriaRatingsPts

This criterion is linked to a Learning OutcomeGoverning style and principles of the government.

20.0 ptsThe governing style is understandable and the principles support the choice of the governing style.

16.0 ptsThe governing style is unclear, the principles are unclear, or the governing style and principles do not support each other.

12.0 ptsMissing one part of the governing style and principles.

0.0 ptsMissing both parts of the governing style and principles.

20.0 pts

This criterion is linked to a Learning OutcomeBranches of government and its functions.

20.0 ptsExplains each branch of government and the function of the particular branch and how they support the governing style.

16.0 ptsThe branches of government and their functions do not match, or the branches are discussed without talking about their functions AND how they support the governing style.

12.0 ptsOnly minimally discusses branches, and their functions or the branches do not support the governing style chosen.

0.0 ptsDoes not discuss the branches and their functions.

20.0 pts

This criterion is linked to a Learning OutcomeMaintaining public good through at least two domestic programs

20.0 ptsTwo domestic programs are created clearly explaining how public good is maintained with these programs.

16.0 ptsTwo domestic programs are noted, but it’s unclear how they benefis the public good.

12.0 ptsOnly one domestic program is noted, or it is unclear how the public good is maintained.

0.0 ptsNo domestic program is noted.

20.0 pts

This criterion is linked to a Learning OutcomeEconomic structure

15.0 ptsThe economic structure is named and supports the governing style with a rationale for using the structure.

12.0 ptsThe economic structure is named and supports the governing style, but the rationale is unclear.

9.0 ptsThe economic structure is named but does not support the governing style, and the rationale is unclear.

0.0 ptsThe economic structure is not addressed.

15.0 pts

This criterion is linked to a Learning OutcomePolitical socializing to create national unity

15.0 ptsThere is at least one method the new government will use to socialize citizens to create national unity and rationales for using these methods.

12.0 ptsThe method described will create national unity, but rationale is not provided.

9.0 ptsThe method described will not create national unity and rationale is not provided.

0.0 ptsNo method for national unity is addressed.

15.0 pts

This criterion is linked to a Learning OutcomeInternational organizations

25.0 ptsAt least two different international organizations, one economic and one for security, were identified with brief descriptions of the purposes of these organizations and steps on how to join.

20.0 ptsOnly one international organization is noted, obut descriptions and rationale are unclear andit is nclear on the steps to join.

15.0 ptsOnly one international organization was noted and no rationales and descriptions were given.

0.0 ptsInternational organizations were not addressed

25.0 pts

This criterion is linked to a Learning OutcomeCombatting terrorism and violence

25.0 ptsTwo ways were offered to combat terrorism and violence (one to deal with international threat and one with domestic).Effective rationale for solutions were offered.

20.0 ptsTwo ways were offered to combat terrorism and violence (one to deal with international threat and one with domestic). Effective rationale for one or both solutions were not offered.

15.0 ptsOnly one way to combat violence and sound rationale on why to use that solution was offered.

0.0 ptsWays to combat violence is not noted.

25.0 pts

This criterion is linked to a Learning OutcomeScholarly resources

10.0 ptsUses both the book and, at least, one outside scholarly source.

8.0 ptsUses only the book or a scholarly source.

6.0 ptsUses only a scholarly source and the source is not scholarly.

0.0 ptsDoes not use the book or scholarly source.

10.0 pts

This criterion is linked to a Learning OutcomeAPA

5.0 ptsAll sources are properly cited and referenced according to APA standards.

4.0 ptsSources are either properly cited or referenced, missing one of those elements.

3.0 ptsThe citation and/or reference are incorrect.

0.0 ptsNo APA format was used.

5.0 pts

This criterion is linked to a Learning OutcomeWriting

5.0 ptsPresents information using clear and concise language in an organized manner (minimal errors in English grammar, spelling, syntax, and punctuation).

4.0 ptsPresents information using understandable language but is somewhat disorganized (some errors in English grammar, spelling, syntax, and punctuation).

3.0 ptsPresents information using understandable language but is very disorganized (many errors in English grammar, spelling, syntax, and punctuation).

0.0 ptsPresents information that is not clear, logical, professional or organized to the point that the reader has difficulty understanding the message (numerous errors in English grammar, spelling, syntax, and/or punctuation).

5.0 pts

Financial case study | Nursing homework help

One of the important duties of a nurse leader is to manage personnel and personnel budgets. In this assignment, you will assume the role of a nurse manager. You will use given data to make important decisions regarding budgets and staffing.

Some nurse managers have computer spreadsheets or software applications to help them make decisions regarding budgets and staffing. You will only need simple mathematical operations* to perform the needed calculations in this assignment because the scenario has been simplified. Furthermore, some data have been provided for you that a nurse leader might need to gather or compute in a real setting. Still, you will get a glimpse of the complexity of responsibilities nurse leaders shoulder regarding financial management.

Read the questions very carefully. Watch your instructions if it says “round to the tenth” don’t forget to do so. The assignment is based on a 40 hour work week.

PLEASE MAKE SURE TO LOOK AT THE RUBIC ATTACHED WITH THE ASSIGNMENT!!!

04.03 the decision: assessment | Government homework help

Instructions: Replace the information in parentheses with your own work according to the assessment instructions.

template

T.M. v. State of Florida

I, (your name), write this opinion to (support the majority opinion or dissent with the majority opinion) on the case of T.M. v. State of Florida.

(First paragraph—Explain why your opinion reflects the majority or minority opinion. Give details of each side of the case.)

(Second paragraph—Explain whether you tended to favor loose or strict interpretation of the laws and rights in this case. Give specific examples of where you used each type of interpretation in this case. Explain your reasons for favoring one or the other.)

(Third paragraph—Describe the factors that most influenced your decision and interpretations in this case. Explain why you thought each was significant.)

Hazelwood v. Kuhlmeier

I, (your name), write this opinion to (support the majority opinion or dissent with the majority opinion) on the case of Hazelwood v. Kuhlmeier.

(First paragraph—Explain why your opinion reflects the majority or minority opinion. Give details of each side of the case.)

(Second paragraph—Explain whether you tended to favor loose or strict interpretation of the laws and rights in this case. Give specific examples of where you used each type of interpretation in this case. Explain your reasons for favoring one or the other.)

(Third paragraph—Describe the factors that most influenced your decision and interpretations in this case. Explain why you thought each was significant.)

due by 11:59pm

I need someone who knows in microsoft 2013 !!! also, check the

ENGLISH IS MY SECOND LANGUAGE, SO DON’T MAKE IT SOUND PERFECT. ALSO NO PLAGIARISM PLEASE.I will work with you again if you do what i want exactly.

 

 

 

Q1- On Page 71 of our text are outcomes for Projects 1A and 1B.( half page writing. No sources, just your own words based on what you understand, NO PALGIARISM PLEASE) (SEE ATTACHMENT)

After reading the chapter, which outcomes do you feel are relevant to you?

If you have further questions about these objectives what are they?

 

 

 

Q2- On Page 121 of our text are outcomes for Projects 1A and 1B.(half page writing. No sources, just your own words based on what you understand, NO PALGIARISM PLEASE) ( see attachment)

After reading the chapter, which outcomes do you feel are relevant to you?

If you have further questions about these objectives what are they?

 

 

 

Q3- Complete the following assignments in your textbook: ( NO SOURCES, READ AND WORK, SEE ATTACHMENT FOR EACH ONE)

1.  Project 1E Documentary- page 169.

2.  Project 1F Pitch Festival – page 171.

3.  Project 1G Educational Website – page 173.

Student Data Files for this assignment can be found at Creating Documents With Microsoft Word 2013View in a new window

Finance – fundamentals of capital budgeting

The Fundamentals of Capital Budgeting

 

 

Section 10.1

1.      Why capital investments are considered the most important decisions made by a firm’s management?

 

2.     What are the differences between capital projects that are independent, mutually exclusive, and contingent?

 

Section 10.2

1.                  What is the NPV of a project?

 

2.                  If a firm accepts a project with a $10,000 NPV, what is the effect on the value of the firm?

3.            What are the five steps used in NPV analysis?

The five-step process used in the NPV analysis can be listed as follows:

 

Section 10.3

1.                  What is the payback period?

 

 

2.                  Why does the payback period provide a measure of a project’s liquidity risk?

 

3.         What are the main shortcomings of the payback method?

 

 

Section 10.4

1.            What are the major shortcomings of using the ARR method as a capital budgeting method?

 

Section 10.5

1.      What is the IRR method?

 

2.      In capital budgeting, what is a conventional cash flow pattern?

 

 

3.      Why should the NPV method be the primary decision tool used in making capital investment decisions?

 

Section 10.6

1.   What changes have taken place in the capital budgeting techniques used by U.S. companies?

 

Self-Study Problems

 

10.1     Premium Manufacturing Company is evaluating two forklift systems to use in its plant that produces the towers for a windmill power farm. The costs and the cash flows from these systems are shown below. If the company uses a 12 percent discount rate for all projects, determine which forklift system should be purchased using the net present value (NPV) approach.

 

 

Year 0

Year 1

Year 2

Year 3

Otis Forklifts

$3,123,450

$979,225

$1,358,886

$2,111,497

Craigmore Forklifts

$4,137,410

$875,236

$1,765,225

$2,865,110

 

 

10.2     Rutledge, Inc., has invested $100,000 in a project that will produce cash flows of $45,000, $37,500, and $42,950 over the next three years. Find the payback period for the project.

 

 

10.3     Perryman Crafts Corp. is evaluating two independent capital projects that together will cost the company $250,000. The two projects will provide the following cash flows:

 

Year

Project A

Project B

1

$80,750

$32,450

2

$93,450

$76,125

3

$40,325

$153,250

4

$145,655

$96,110

 

 

Which project will be chosen if the company’s payback criterion is three years?  What if the

company accepts all projects as long as the payback period is less than five years?

 

10.4     Terrell Corp. is looking into purchasing a machine for its business that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding depreciation) for the next five years are shown in the following table. The company’s tax rate is 34 percent.

 

 

Year 1

Year 2

Year 3

Year 4

Year 5

Sales

$123,450

$176,875

$242,455

$255,440

$267,125

Expenses

$137,410

$126,488

$141,289

$143,112

$133,556

 

 

            The company will accept all projects that provide an accounting rate of return (ARR) of at least 45 percent. Should the company accept this project?

 

 

 

The company will accept all projects that provide an accounting rate of return (ARR) of at least 45 percent. Should the company accept the project?

 

10.5          Refer to Problem 10.1. Compute the IRR for each of the two systems. Is the investment decision different from the one determined by NPV?

Critical Thinking Questions

 

10.1     Explain why the cost of capital is referred to as the “hurdle” rate in capital budgeting.

 

 

10.2     a.   A company is building a new plant on the outskirts of Smallesville. The town has offered to donate the land, and as part of the agreement, the company will have to build an access road from the main highway to the plant. How will the project of building the road be classified in capital budgeting analysis?

 

b.   Sykes, Inc., is considering two projects: a plant expansion and a new computer system for the firm’s production department. Classify these projects as independent, mutually exclusive, or contingent projects and explain your reasoning.

 

c.   Your firm is currently considering the upgrading of the operating systems of all the firm’s computers. The firm can choose the Linux operating system that a local computer services firm has offered to install and maintain. Microsoft has also put in a bid to install the new Windows operating system for businesses. What type of project is this?

 

10.3     In the context of capital budgeting, what is “capital rationing”?

 

 

10.4Provide two conditions under which a set of projects might be characterized as mutually exclusive.

 

 

 

10.5a.A firm invests in a project that would earn a return of 12 percent. If the appropriate cost of capital is also 12 percent, did the firm make the right decision. Explain.

 

     b.What is the impact on the firm if it accepts a project with a negative NPV?

 

 

10.6     Identify the weaknesses of the payback period method..

 

10.7     What are the strengths and weaknesses of the accounting rate of return (ARR) approach?

 

10.8     Under what circumstances might the IRR and NPV approaches have conflicting results?

 

10.9     The modified IRR (MIRR) alleviates two concerns with using the IRR method for evaluating capital investments. What are they?

 

10.10   Elkridge Construction Company has an overall (composite) cost of capital of 12 percent. This cost of capital reflects the cost of capital for an Elkridge Construction project with average risk. However, the firm takes on projects of various risk levels. The company experience suggests that low-risk projects have a cost of capital of 10 percent and high-risk projects have a cost of capital of 15 percent. Which of the following projects should the company select to maximize shareholder wealth?

Questions and Problems

 

BASIC

 

10.1     Net present value: Riggs Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that this action will result in additional cash flows of $325,000 over the next three years. If the discount rate is 17.5 percent, what is the NPV on this project?

LO 2

 

 

10.2     Net present value: Kingston, Inc. management is considering purchasing a new machine at a cost of $4,133,250. They expect this equipment to produce cash flows of $814,322, $863,275, $937,250, $1,017,112, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment?

LO 2

 

10.3     Net present value: Crescent Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. If the firm uses an 18 percent discount rate, should management go ahead with the project?

Year

Cash Flow

0

$3,300,000

1

$875,123

2

$966,222

3

$1,145,000

4

$1,250,399

5

$1,504,445

LO 2

 

10.4     Net present value:Franklin Mints, a confectioner, is considering purchasing a new jellybean-making machine at a cost of $312,500. The company’s management projects that the cash flows from this investment will be $121,450 for the next seven years. If the appropriate discount rate is 14 percent, what is the NPV for the project?

LO

10.5     Net present value: Blanda Incorporated management is considering investing in two alternative production systems. The systems are mutually exclusive, and the cost of the new equipment and the resulting cash flows are shown in the accompanying table.  If the firm uses a 9 percent discount rate for their production systems, in which system should the firm invest?

LO 2

 

 

Year

 

System 1

 

System 2

0

 

-15,000

 

-45,000

1

 

15,000

 

32,000

2

 

15,000

 

32,000

3

 

15,000

 

32,000

 

 

10.6     Payback:  Refer to problem 10.5.  What are the payback periods for production systems 1 and 2?  If the systems are mutually exclusive and the firm always chooses projects with the lowest payback period, in which system should the firm invest?

LO 3

 

 

 

10.7     Payback: Quebec, Inc., is purchasing machinery at a cost of $3,768,966. The company’s management expects the machinery to produce cash flows of $979,225, $1,158,886, and $1,881,497 over the next three years, respectively. What is the payback period?

LO 3

 

 

10.8     Payback: Northern Specialties just purchased inventory-management computer software at a cost of $1,645,276. Cost savings from the investment over the next six years will be reflected in the following cash flow stream: $212,455, $292,333, $387,479, $516,345, $645,766, and $618,325. What is the payback period on this investment?

LO 3

 

 

10.9     Payback: Nakamichi Bancorp has made an investment in banking software at a cost of $1,875,000. Management expects productivity gains and cost savings over the next several years. If the firm is expected to generate cash flows of $586,212, $713,277, $431,199, and $318,697 over the next four years, what is the investment’s payback period?

LO 3

 

 

10.10   Average accounting rate of return (ARR): Capitol Corp. is expecting a project to generate after-tax income of $63,435 over each of the next three years. The average book value of its equipment over that period will be $212,500. If the firm’s acceptance decision on any project is based on an ARR of 37.5 percent, should this project be accepted?

LO 4

 

 

10.11   Internal rate of return:Refer to Problem 10.4. What is the IRR that Franklin Mints management can expect on this project?

LO 5

 

10.12   Internal rate of return:Hathaway, Inc., a resort company, is refurbishing one of its hotels at a cost of $7.8 million. The firm expects that this will lead to additional cash flows of $1.8 million for the next six years. What is the IRR of this project? If the appropriate cost of capital is 12 percent, should Hathaway go ahead with this project?

LO 5

 

 

INTERMEDIATE

 

10.13   Net present value: Champlain Corp. is investigating two computer systems. The Alpha 8300 costs $3,122,300 and will generate annual cost savings of $1,345,500 over the next five years. The Beta 2100 system costs $3,750,000 and will produce cost savings of $1,125,000 in the first three years and then $2 million for the next two years. If the company’s discount rate for similar projects is 14 percent, what is the NPV for the two systems? Which one should be chosen based on the NPV?

LO 2

 

.

 

10.14   Net present value:Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. This process requires new machinery that would cost $1,968,450, have a life of five years and would produce cash flows as shown in the table. What is the NPV if the firm uses a discount rate of 15.9 percent?

Year

Cash Flow

1

$512,496

2

$(242,637)

3

$814,558

4

$887,225

5

$712,642

LO 2

 

 

10.15   Net present value:Cranjet Industries is expanding its product line and its production capacity. The costs and expected cash flows of the two independent projects are given in the following table. The firm typically uses a discount rate of 16.4 percent.

a.         What are the NPVs of the two projects?

b          Should both projects be accepted? Or either? Or neither? Explain your reasoning.

 

 

Year

Product Line Expansion

Production Capacity Expansion

0

$(2,575,000)

$(8,137,250)

1

$600,000

$2,500,000

2

$875,000

$2,500,000

3

$875,000

$2,500,000

4

$875,000

$3,250,000

5

$875,000

$3,250,000

LO 2

 

 

10.16   Net present value:Emporia Mills is evaluating two alternative heating systems. Costs and projected energy savings are given in the following table. The firm uses 11.5 percent to discount such project cash flows. Which system should be chosen?

 

Year

System 100

System 200

0

$(1,750,000)

$(1,735,000)

1

$275,223

$750,000

2

$512,445

$612,500

3

$648,997

$550,112

4

$875,000

$384,226

LO 2

 

 

 

10.17   Payback: Creative Solutions, Inc., has just invested $4,615,300 in equipment. The firm uses payback period criteria of not accepting any project that takes more than four years to recover its costs. The company anticipates cash flows of $644,386, $812,178, $943,279, $1,364,997, $2,616,300, and $2,225,375 over the next six years. Does this investment meet the firm’s payback criteria?

LO 3

 

 

10.18   Discounted payback: Timeline Manufacturing Co. is evaluating two projects. It uses payback criteria of three years or less. Project A has a cost of $912,855, and project B’s cost is $1,175,000. Cash flows from both projects are given in the following table. What are their discounted payback periods, and which will be accepted with a discount rate of 8 percent?

Year

Project A

Project B

1

$ 86,212

$586,212

2

$313,562

$413,277

3

$427,594

$231,199

4

$285,552

 

LO 3

 

10.19   Payback: Regent Corp. is evaluating three competing pieces of equipment. Costs and cash flow projections for all three are given in the following table. Which would be the best choice based on payback period?

 

Year

Type 1

Type 2

Type 3

0

$(1,311,450)

$(1,415,888)

$(1,612,856)

1

$212,566

$586,212

$786,212

2

$269,825

$413,277

$175,000

3

$455,112

$331,199

$175,000

4

$285,552

$141,442

$175,000

5

$121,396

 

$175,000

6

 

 

$175,000

LO 3

 

10.20   Discounted payback: Nugent Communication Corp. is investing $9,365,000 in new technologies. The company expects significant benefits in the first three years after installation (as can be seen by the cash flows), and smaller constant benefits in each of the next four years. What is the discounted payback period for the project assuming a discount rate of 10 percent?

 

 

 

Years

 

 

 

1

2

3

4 – 7

Cash flows

$2,265,433

$4,558,721

$3,378,911

$1,250,000

LO 3

 

 

10.21   Modified internal rate of return (MIRR): Morningside Bakeries has recently purchased equipment at a cost of $650,000. The firm expects to generate cash flows of $275,000 in each of the next four years. The cost of capital is 14 percent. What is the MIRR for this project?

LO 5

 

 

10.22   Modified internal rate of return (MIRR): Sycamore Home Furnishings is considering acquiring a new machine that can create customized window treatments. The equipment will cost $263,400 and will generate cash flows of $85,000 over each of the next six years. If the cost of capital is 12 percent, what is the MIRR on this project?

LO 5

 

 

 

10.23   Internal rate of return:Great Flights, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $161 million. The company would lease the aircraft to an airline. Cash flows from the proposed leases are shown in the following table. What is the IRR of this project?

Years

Cash Flow

1–4

$23,500,000

5–7

$72,000,000

8–10

$80,000,000

 

 

 

 

 LO 5

 

 

10.24   Internal rate of return:  Refer to problem 10.5.  Compute the IRR for both production system 1 and production system 2.  Which has the higher IRR?  Which production system has the highest NVP?  Explain why the IRR and NPV rankings of systems 1 and 2 are different?

 LO 5

 

10.25  Internal rate of return:  Ancala Corporation is considering investments in two new golf apparel lines for next season: golf hats and belts.  Due to a funding constraint, these lines are mutually exclusive.  A summary of each project’s estimated cash flows over its three -year life, as well as the IRRs and NPVs of each are outlined below.  The CFO of the firm has decided to manufacture the belts; however, the CEO of Ancala is questioning this decision given that the IRR is higher for manufacturing hats.   Explain to the CEO why the IRRs and NPVs of the belt and hat projects disagree?  Is the CFO’s decision the correct .

 

Year

Golf Belts

Golf Hats

0

-$1,000

-$500

1

1,000

500

2

500

300

3

500

300

 

 

 

NPV

$697.97

$427.87

IRR

54%

61%

 

LO 5

 

10.26   Internal rate of return:Compute the IRR on the following cash flow streams:

a.         An initial investment of $25,000 followed by a single cash flow of $37,450 in year 6.

b.         An initial investment of $1 million followed by a single cash flow of $1,650,000 in year 4.

c.         An initial investment of $2 million followed by cash flows of $1,650,000 and $1,250,000 in years 2 and 4, respectively.

LO 5

 

 

10.27   Internal rate of return:Compute the IRR for the following project cash flows.

a.         An initial outlay of $3,125,000 followed by annual cash flows of $565,325 for the next eight years

b.         An initial investment of $33,750 followed by annual cash flows of $9,430 for the next five years

c.         An initial outlay of $10,000 followed by annual cash flows of $2,500 for the next seven years

LO 5

 

ADVANCED

 

10.28   Draconian Measures, Inc., is evaluating two independent projects. The company uses a 13.8 percent discount rate for such projects. The cost and cash flows are shown in the following table. What are the NPVs of the two projects?

 

Year

Project 1

Project 2

0

$(8,425,375)

$(11,368,000)

1

$3,225,997

$2,112,589

2

$1,775,882

$3,787,552

3

$1,375,112

$3,125,650

4

$1,176,558

$4,115,899

5

$1,212,645

$4,556,424

6

$1,582,156

 

7

$1,365,882

 

LO 2

 

 

10.29   Refer to Problem 10.28.

a.         What are the IRRs for the projects?

b.         Does the IRR criterion indicate a different decision than the NPV criterion?

c.         Explain how you would expect the management of Draconian Measures to decide.

LO 5

 

10.30   Dravid, Inc., is currently evaluating three projects that are independent. The cost of funds can be either 13.6 percent or 14.8 percent depending on their financing plan. All three projects cost the same at $500,000. Expected cash flow streams are shown in the following table. Which projects would be accepted at a discount rate of 14.8 percent? What if the discount rate was 13.6 percent?

 

Year

Project 1

Project 2

Project 3

1

0

0

$245,125

2

$125,000

0

$212,336

3

$150,000

$500,000

$112,500

4

$375,000

$500,000

$74,000

 

 

LO 2

10.31   Intrepid, Inc., is looking to invest in two or three independent projects. The costs and the cash flows are given in the following table. The appropriate cost of capital is 14.5 percent. Compute the IRRs and identify the projects that will be accepted.

 

Year

Project 1

Project 2

Project 3

0

$(275,000)

$(312,500)

$(500,000)

1

$63,000

$153,250

$212,000

2

$85,000

$167,500

$212,000

3

$85,000

$112,000

$212,000

4

$100,000

 

$212,000

LO 5

 

10.32   Jekyll & Hyde Corp. is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows are given in the following table. Which project should be accepted?

 

Year

Project 1

Project 2

0

$(1,250,000)

$(1,250,000)

1

$250,000

$350,000

2

$350,000

$350,000

3

$450,000

$350,000

4

$500,000

$350,000

5

$750,000

$350,000

LO 5

 

10.33   Larsen Automotive, a manufacturer of auto parts, is considering investing in two projects. The company typically compares project returns to a cost of funds of 17 percent. Compute the IRRs based on the given cash flows, and state which projects will be accepted.

Year

Project 1

Project 2

0

$(475,000)

$(500,000)

1

$300,000

$117,500

2

$110,000

$181,300

3

$125,000

$244,112

4

$140,000

$278,955

LO 5

 

 

10.34   Compute the IRR for each of the following projects:

Year

Project 1

Project 2

Project 3

0

$(10,000)

$(10,000)

$(10,000)

1

$4,750

$1,650

$800

2

$3,300

$3,890

$1,200

3

$3,600

$5,100

$2,875

4

$2,100

$2,750

$3,400

5

 

$800

$6,600

LO 5

 

 

10.35   Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next eight years. The company uses a discount rate of 12 percent.

a.         What is the payback period?

b.         What is the NPV for this project?

c.         What is the IRR?

LO 2, LO 3, LO 5

 

 

10.36   Quasar Tech Co. is investing $6 million in new machinery that will produce the next-generation routers. Sales to its customers will amount to $1,750,000 for the next three years and then increase to $2.4 million for three more years. The project is expected to last six years and cost, excluding depreciation will be $898,620 annually. The machinery will be depreciated to a salvage value of 0 over 6 years using the straight-line method. The company’s tax rate is 30 percent, and the cost of capital is 16 percent.

a.         What is the payback period?

b.         What is the average accounting return (ARR)?

c.         Calculate the project NPV.

d.         What is the IRR for the project?

LO 2, LO 3, LO 5

 

 

10.37   Skywards, Inc., an airline caterer, is purchasing refrigerated trucks at a total cost of $3.25 million. After-tax net income from this investment is expected to be $750,000 for the next five years. Annual depreciation expense will be $650,000. The cost of capital is 17 percent.

a.         What is the discounted payback period?

b.         Compute the ARR.

c.         What is the NPV on this investment?

d.         Calculate the IRR.

LO 2, LO 3, LO 4, LO 5

 

 

10.38   Trident Corp. is evaluating two independent projects. The costs and expected cash flows are given in the following table. The company’s cost of capital is 10 percent.

Year

A

B

0

$(312,500)

$(395,000)

1

$121,450

$153,552

2

$121,450

$158,711

3

$121,450

$166,220

4

$121,450

$132,000

5

$121,450

$122,000

 

a.         Calculate the projects’ NPV.

b.         Calculate the projects’ IRR.

c.         Which project should be chosen based on NPV? Based on IRR? Is there a conflict?

d.         If you are the decision maker for the firm, which project or projects will be accepted? Explain your reasoning.

LO 2,  LO 5

10.39   Tyler, Inc., is considering switching to a new production technology. The cost of equipment will be $4 million. The   discount rate is 12 percent. The cash flows that the firm expects to generate are as follows.

Years

CF

0

$(4,000,000)

1-2

0

3–5

$845,000

6–9

$1,450,000

 

a.         Compute the payback and discounted payback period for the project.

b.         What is the NPV for the project? Should the firm go ahead with the project?

c.         What is the IRR, and what would be the decision under the IRR?

LO 2, LO 3, LO 5

10.40.  Given the following cash flows for a capital project, calculate the NPV and IRR. The required rate of return is 8 percent.

 

Year

 

0

1

2

3

4

5

Cash flow

–50,000

15,000

15,000

20,000

10,000

5,000

 

            NPV                IRR

a.         $1,905             10.9%

b.         $1,905             26.0%

c.         $3,379             10.9%

d.         $3,379             26.0%

 

LO 2

10.41.  Given the following cash flows for a capital project, calculate its payback period and discounted payback period. The required rate of return is 8 percent.

 

Year

 

0

1

2

3

4

5

Cash flow

–50,000

15,000

15,000

20,000

10,000

5,000

 

The discounted payback period is

a.         0.16 years longer than the payback period.

b.         0.80 years longer than the payback period.

c.         1.01 years longer than the payback period.

d.         1.85 years longer than the payback period.

 

LO 3

10.42.  An investment of $100 generates after-tax cash flows of $40 in Year 1, $80 in Year 2, and $120 in Year 3. The required rate of return is 20 percent. The net present value is closest to

a.         $42.22

b.         $58.33

c.         $68.52

d.         $98.95

 

LO 2

 

 

 

10.43.  An investment of $150,000 is expected to generate an after-tax cash flow of $100,000 in one year and another $120,000 in two years. The cost of capital is 10 percent. What is the internal rate of return?

a.         28.19 percent

b.         28.39 percent

c.         28.59 percent

d.         28.79 percent

 

LO 5

10.44.  An investment requires an outlay of 100 and produces after-tax cash flows of $40 annually for four years. A project enhancement increases the outlay by $15 and the annual after-tax cash flows by $5. How will the enhancement affect the NPV profile?  The vertical intercept of the NPV profile of the project shifts:

 

a.         up and the horizontal intercept shifts left.

b.         up and the horizontal intercept shifts right.

c.         down and the horizontal intercept shifts left.

d.         down and the horizontal intercept shifts right.

 

LO 2

 

Sample Test Problems

 

10.1     Net present value: Techno Corp. is considering developing new computer software. The cost of development will be $675,000, and the company expects the revenue from the sale of the software to be $195,000 for each of the next six years. If the company uses a discount rate of 14 percent, what is the net present value of this project?

 

10.2     Payback method:Parker Office Supplies is considering replacing the company’s outdated inventory-management software. The cost of the new software will be $168,000. Cost savings is expected to be $43,500 for each of the first three years and then to drop off to $36,875 for the following two years. What is the payback period for this project?

 

10.3     Accounting rate of return: Fresno, Inc., is expecting to generate after-tax income of $156,435 in each of the next three years. The average book value of its equipment over that period will be $322,500. If the firm’s acceptance decision on any project is based on an ARR of 40 percent, should this project be accepted?

10.4     Internal rate of return: Refer to  Sample Test Problem 10.1. What is the IRR on this project?

 

 

10.5     Net present value: Raycom, Inc. needs a new overhead crane and two alternatives are available. Crane T costs $1.35 million and will produce cost savings of $765,000 for the next three years. Crane R will cost $1.675 million and will yield cost savings of $815,000 for the next three years. The required rate of return is 15 percent. Which of the two options should Raycom choose based on NPV criteria and why?