1. Phoenix College is considering a new certificate program in the at-home brain surgery that is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Phoenix College is considering a new certificate program in the at-home brain surgery that is anticipated to attract 8 students. It is anticipated three of those students would have chosen an existing certificate program at Phoenix even if the brain surgery certificate were not to be available. The annual fee charged to a customer for a certification is $40,000 in any certification area offered and the variable costs to Phoenix to offer any certification is $10,000 per year. The additional fixed costs attributed to the new certificate program are $35,000 per year and depreciation per year on new equipment needed for the new program is $19,000. Phoenix pays income tax at a rate of 21%. What is the annual Operating Cash Flow (OCF) amount associated with adding the new at-home brain surgery certificate program? You must show all your calculations. 2. A firm looks at the payback period for any project it is considering and rejects any project that has a payback longer than 4 years. The firm is considering a project with the following cash flows: Year 0 1 2 3 4 Cash Flow -$157,300 70,000 24,000 46,000 87,000 Calculate the payback period rounded to two decimal places to the right of the decimal point and state whether the firm should accept or reject the project. Show your calculations. 1. Phoenix College is considering a new certificate program in the at-home brain surgery that is anticipated to attract 8 students. It is anticipated three of those students would have chosen an existing certificate program at Phoenix even if the brain surgery certificate were not to be available. The annual fee charged to a customer for a certification is $40,000 in any certification area offered and the variable costs to Phoenix to offer any certification is $10,000 per year. The additional fixed costs attributed to the new certificate program are $35,000 per year and depreciation per year on new equipment needed for the new program is $19,000. Phoenix pays income tax at a rate of 21%. What is the annual Operating Cash Flow (OCF) amount associated with adding the new at-home brain surgery certificate program? You must show all your calculations. 2. A firm looks at the payback period for any project it is considering and rejects any project that has a payback longer than 4 years. The firm is considering a project with the following cash flows: Year 0 1 2 3 4 Cash Flow -$157,300 70,000 24,000 46,000 87,000 Calculate the payback period rounded to two decimal places to the right of the decimal point and state whether the firm should accept or reject the project. Show your calculations.
Expert Answer:
Answer rating: 100% (QA)
1 Calculate the annual Operating Cash Flow OCF for the new athome brain surgery certificate program ... View the full answer
Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
You accepted a new job with starting salary of $52,000 per year. The salary is expected to increase 4% each year. Now it is time to make a retirement plan for the next 39 years you expect to work....
-
Summarize the similarities and differences between the standard MSK and Gaussian-filtered MSK signals.
-
Draw the \(T-x-y\) diagram at constant pressure for a minimum boiling azeotrope.
-
Is there any notion of a trade-off between risk and return involved in an ecoefficiency portfolio matrix? How are green stars and dirty dogs related? In your answer cite examples from an industry...
-
Friedman Construction reported taxable income of $50,000 for 2011, its first fiscal year. The enacted tax rate for 2011 is 40%. Enacted tax rates and deductible amounts for 20122014 are as follows:...
-
Why are you learning tax accounting? Does your why in any way related to the business "why"? No plagiarism please.
-
The production manager at a factory manufacturing four types of light fittings (A, B, C and D) on an automated machine is fixing the schedule for the next week on this machine. HEIJUNKA SCHEDULING OF...
-
An ultralight aircraft consists of the components in table Q2. The component masses and their positions relative to an arbitrary origin are indicated in the table. i) Determine the components of the...
-
How do financial institutions utilize advanced statistical techniques and machine learning algorithms to model and forecast credit risk, incorporating factors such as macroeconomic indicators,...
-
8. A pendulum on the moon is 1.80 m long. If the period of the pendulum is 7.00 seconds, the acceleration due to gravity on the moon, expressed to three significant digits, must be m/s.
-
The following facts pertain to a noncancelable lease agreement between Sycamore Leasing Company and Redbird Company, a lessee: Inception date Annual lease pmt. due at the beg. of each year, beginning...
-
K&Z Inc. follows the practice of pricing its inventory at the lower-of-cost-or-market (LCM), on an individual-product basis. The December 31, 2026 inventory of K&Z Inc. consisted of three products,...
-
Explain what a film badge ( Dosimeter ) is and what it is used for?
-
1. Consider a data frame called myDF that contains only two factor variables. Enter the R command that produces a two-way (contingency) table of this data. 2. Presume you've created an R table...
-
Separate variables and use partial fractions to solve the initial value problems in Problems 18. Use either the exact solution or a computer-generated slope field to sketch the graphs of several...
-
Can our goal of maximizing the value of the stock conflict with other goals, such as avoiding unethical or illegal behavior? In particular, do you think subjects like customer and employee safety,...
-
You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 18.5 percent. If Stock X has an expected return of 17.2...
-
a. What is shelf registration? b. What are the arguments against shelf registration?
-
A nurse at a medical center claims that the median number of flu shots they give per day is 30. To test the claim, the nurse randomly selects 20 days during the months of September, October, and...
-
The Pennsylvania Turnpike Commission allows travelers to use a purchased Easy Pass for tolls on the Pennsylvania Turnpike. A researcher hypothesizes that the median of the number of Easy Pass users...
-
Two independent random samples of army and marine recruits are selected, and the time in minutes it takes each recruit to complete an obstacle course is recorded, as shown in the table. At...
Study smarter with the SolutionInn App