Answer & Explanation: Lena would respond to the buyer's request of wanting a house in the Cuban neighborhood by explaining to her that legally and ethically, she cannot provide housing recommendations based on national origin as it is a form of housing discrimination which is enshrined in the Fair Housing Act. The Act can take several forms, one of which is discrimination based on national origin.
How much can a Municipal Finance Professional (MFP) contribute to the "clean up" campaign to pay off campaign debt of an ex-issuer official that is now out of office because she lost the general election
Answer:
An unlimited amount
Explanation:
According to the Municipal Securities Rulemaking Board, given that an ex-issuer official is no longer in office and has no power to drive municipal securities business to his or her former firm in order to get a large campaign contribution in return.
His former firm, in this case, which is Municipal Finance Professional can contribute whatever amount they so wish, to the "clean up" campaign to pay off campaign debt.
Which of the following is a disadvantage of a strategic alliance?
A. Firms that enter into a strategic alliance with a foreign firm tend to face higher trade barriers.
B. Entering into a strategic alliance makes it difficult for a firm to enter into a foreign market.
C. As a result of strategic alliance, fixed costs of developing new products tend to increase.
D. Strategic alliance always leads to a loss to either of the firms involved.
E. Strategic alliance gives competitors a low-cost route to new technology and markets
Answer: E. Strategic alliance gives competitors a low-cost route to new technology and markets
Explanation:
A strategic alliance is simply when there is an agreement that takes place between two or more parties so that a certain objective can be achieved even though the companies still maintain their independence.
The disadvantage of a strategic alliance is that strategic alliance gives competitors a low-cost route to new technology and markets.
1. The oversupply of hospitals and in-patient beds in the U.S. produced by the Hill-Burton legislation is the result of: A. The advent of managed care B. Change in the focus of medical education C. Technological advances D. Clinical guidelines E. A and C
Answer:
Correct Answer:
E. A and C
Explanation:
Hill-Burton legislation was due to the determined efforts of these two Senators, Hill an Burton. A goal of the unique program was to issue loans or grants to support the construction of modern medical facilities in every American county, with a standard of 4.5 hospital beds for each 1,000 people.
A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.40 per unit to manufacture. The units can be a) sold as is for $3.40 each, or b) reworked for $4.80 each and then sold for the full price of $8.80 each. What is the incremental income from selling the units as scrap and reworking and selling the units?
Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.)
Answer:
It is more convenient to rework the units and sell them for the full price.
Explanation:
Giving the following information:
The company has 19,000 defective units.
The units can be:
a) sold as-is for $3.40 each
b) reworked for $4.80 each and then sold for the full price of $8.80 each.
We won't take into account the firsts $5.4 costs because they are irrelevant for the decision-making process.
Sell as-is:
Effect on income= 19,000*3.4= $64,600
Rework:
Effect on income= 19,000*(8.8 - 4.8)
Effect on income= $76,000
It is more convenient to rework the units and sell them for the full price.
Carper Company is considering a capital investment of $390,000 in additional productive facilities. The new machinery is expected to have useful life of 6 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $20,000 and $85,000, respectively. Carper has an 8% cost of capital rate, which is the required rate of return on the investment.
Instructions (Round to two decimals.)
(a) Compute the cash payback period.
(b) Using the discounted cash flow technique, compute the net present value.
(c) Carper was presented with a second capital investment that provided similar production facilities as the first one. This investment cost $400,000, had a useful life of 7 years with a salvage value of $15,000. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $25,000 and $80,000 respectively. Carper’s 8% cost of capital is also the required rate of return on the investment.
(1) Compute the cash payback period.
(2) Using the discounted cash flow technique, compute the net present value.
(3) Based on these calculations, which investment do you recommend? Explain why.
Answer:
a. 4.59 years
b. $2,944.77
c
1. 5 years
2. $25,261.96
3.I would recommend the second investment because the NPV for the second project is greater than that of the first project. It means that the second project is more profitable than the first project.
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
$390,000 / $85,000 = 4.59 years
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $390,000
Cash flow each year from year 1 to 6 = $85,000
I = 8%
NPV = $2,944.77
For the second investment
Payback period = Amount invested / cash flow
$400,000 / $80,000 = 5 years
Cash flow in year 0 = -$400,000
Cash flow each year from year 1 to 6 = $80,000
Cash flow in year 7 = $80,000 + $15,000 = $95,000
I = 8%
NPV = $25,261.96
I would recommend the second investment because the NPV for the second project is greater than that of the first project. It means that the second project is more profitable than the first project.
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute