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If Siberian Ski Company desires an after-tax net income of $24,000, how many pairs of touring model skis will the company have to sell?
Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company to break even.
Calculate the break-even number of boxes of pasta and jars of sauce. Suppose that the production manager is wrong and that the number of setups doubles
Compute the after-tax operating cash flows for each model. Compute the NPV for each model, and make a recommendation.
Discuss three possible reasons that the payback period is used to help make capital investment decisions. What is the accounting rate of return?
What is the cost of capital? What role does it play in capital investment decisions?
Suppose Sam leaves the original deposit plus any interest in the account for two years. How much will Sam have in savings after two years?
Compute the project's net present value, assuming a required rate of return of 10 percent. Compute the project's internal rate of return.
Compute the NPV and the IRR for each investment. Show that the project with the larger NPV is the correct choice for the company.
Compute the after-tax cash flows of each project. The tax rate is 40 percent and includes federal and state assessments.
Compute the NPV using the unadjusted cash flows. Compute the NPV using cash flows adjusted for inflationary effects.
Analyze and discuss the effect this new information has on the two alternatives.
Explain why Kent accepted only Proposal A. Considering the possible reasons for rejection, would you judge his behavior to be ethical?
Compute the NPV of each alternative. Should the company keep the old MRI equipment or buy the new one?
Compute the NPV for each system, adjusting the future cash flows for the rate of inflation.
Prepare a schedule of cash flows for the make alternative. Calculate the NPV of the make alternative.
What is the justification for adding an environmental perspective to the Balanced Scorecard?
Observe between the environmental benefits category and the environmental cost category?
Prepare a partial environmental financial statement, divided into benefit and cost sections for 2005, 2006, and 2007.
In the cost section, classify environmental costs by category (prevention, detection, etc.). Evaluate the changes in environmental performance.
Upon examining the cost data produced in Requirement 1, an environmental engineer made the following suggestions:
Explain why a manager might wish to include product use and disposal information in the assessment of environmental performance.
Express the environmental improvement strategy as a series of cause-and-effect relationships expressed as if-then statements.
Evaluate the sustainability performance of each firm. Which do you think is closer to the concept of sustainable development?
Compute the contribution margin ratio. Using that ratio, compute the additional profit that Cutlass would earn if sales were $25,000 more than expected.