A car manufacturing company is planning to expand its manufacturing capacity and its demand by adding a new technology. Technology A costs $10,000,000 to purchase and has a maintenance cost of $30 per new customer and operating cost of $25 per unit produced, both paid at the end of the year. Technology B costs $15,000,000 to purchase and its maintenance and operation cost will not depend on the number of users or production. The maintenance cost for this technology is expected to be $65,000 monthly (payable at the end of each month) and operating cost of $50,000 annually payable at the end of each year. The demand for this company is seasonal. In Spring, they are expected to have an average of 5000 customers, followed by Summer with an average demand of 4000, Fall with an average demand of 2000 and Winter with an average demand of 500. This demand is expected to increase by 5% every year. Salvage value for technology A is $0 and technology A has a lifetime of 5 years. Salvage value for technology B is $1,000,000 and technology B has a lifetime of 10 years. Interest rate is 7% per year compounded monthly. a) Draw the cash-flow diagram for alternatives A and B. [5 points) I
b) What is the present worth of both technologies? Which technology do you recommend and ww2.10nointal

Arriving and delivering a load of company executives for a business meeting at a destination far from home base requiring an overnight stay, a company’s pilot requested approval from the company finance office to pay to either have the company’s jet brought into the fbo's hangar overnight to protect it from a forecast snowfall or to have it de-iced by the fbo the following morning well-before scheduled departure. the company was under considerable financial pressure at the time, and the pilot’s requests were denied because of the cost. so, early the following morning, the pilot was up on the wing of the jet sweeping off an accumulation of snow and ice with a borrowed push broom in preparation for the scheduled departure with the executives, but slipped and fell to the ground, suffering a broken neck. the business was organized as a limited partnership, owned by 3 limited partners and one general partner. as a cost-saving measure, the company had dropped its workers’ compensation insurance before the accident. analyze the potential liability for the pilot’s injuries of each of the following, showing your reasoning clearly: the company the general partner the limited partners analyze how the outcome would have been different, if the business had been organized as a corporation and observed all of the formalities to legitimize its corporate status. analyze how the outcome would have been different, if the pilot had been covered by workers’ compensation insurance.

The green revolution is a scientific breakthrough that improved seeds for basic crops. how did the green revolution impact the supply of basic crops such as wheat and corn? the supply of wheat and corn increased. there was no impact on the supply of basic crops. the supply of basic crops did not change, but the quantity supplied of basic crops increased. the supply of wheat and corn decreased.

Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th withdraw?