Q3.In automobile industry there is a growing demand for electrical vehicles, in the present era, conduct an analysis on any commercially available electrical vehicle being used, consider initial investment, annual costs( operation costs/maintenance costs), salvage value, revenue if any with usage and find out whether buying an electric car is preferable or not over a conventional automobile which runs on fuel.(prepare estimate for conventional fuel run car and electrical car and evaluate which one is profitable using any BCR Method). Discuss with an inference which one is preferred (Prepare for 5 years)
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- Energy entrepreneur T. Boone Pickens has proposed converting the trucking fleet in the United States to liquefied natural gas (LNG) and using wind power to replace the missing LNG in electric power production. What infrastructure issues do you see that must be resolved before the Pickens plan could be adopted?Over the course of a customer’s lifetime of reading a weekly magazine priced at $4 per issue, what is the value of the magazine? Assume a customer acquisition cost of $12, a retention cost of $0, printing and distribution costs of $1, an annual retention rate of 77% and an annual discount rate of 2.6%. Assume that price and non-marketing variable costs remain constant over the customer’s lifetime of reading the magazine. Options: A) 10.05 B) 30.50 C) 73.49 D) 14.20 E) 0.02 F) 261.25Thompson Lumber Company wants to decide if they want to expand their current product line by manufacturing a new product, backyard storage sheds. They decide their alternatives are to (1) construct a new large plant to manufacture storage sheds, (2) a small plant, or (3) no plant at all. To identify the possible outcomes, management created the payoff table, indicating profits below. Favorable Market Unfavorable Market Alternative ($) ($) Large Plant 200,000 -180,000 Small Plant 100,000 -20,000 Do nothing 0 0 What decision would you make if you applied the minmax regret rule?
- Q1 = (4310/22) - (P1/22) Q2 = (5021/17) - (P2/17) TC = 760 + 14Q1 + 32Q2 Form the profit equation, π and solve for the critical values. (a) What is the critical value of Q1?Lyft launched its IPO on April 1st 2019 with a share price of $72. Before the IPO, Lyft’s board of directors was likely trying to decide how to compensate CEO Logan Green to provide an incentive for him to increase the firm’s performance and share price after it went public. Let’s say the board was considering two possibilities such that they were deciding between providing one million dollars worth of shares of the firm stock at $72 per share or one million dollars worth of call options with a strike price of $72 and a maturity and vesting date one year after the IPO. To keep things simple, let’s say CEO Logan Green can choose between providing two levels of effort: regular effort or high effort. He has been exerting regular effort all along. He could switch to high effort which would be much more costly for him as he would have to work even longer hours, but the extra effort would likely result in better performance for the firm. The goal of the board’s incentive compensation is to…The timber rights to a tract of forest can be purchased for $250,000. The harvesting agreement would allow 25% of the timber to be cut in each of the first, second, fourth, and fifth years. The purchaser of the timber rights would be required to replant, at its expense, the logged areas in Years 3 and 6. Arrowsmith Lumber calculates that its profit in each of the four cutting years would be $90,000 and that the cost of replanting the harvested areas in each of Years 3 and 6 would be $30,000.a) Should Arrowsmith Lumber buy the timber rights if its cost of capital is 5.5%?b) By what amount would the economic value of Arrowsmith Lumber be increased or decreased if it proceeded with purchasing the timber rights for $250,000?
- Suppose a firm's project generates cash flows for ten years. The first-year profits are $1000, and it grows by 3% each year. If the interest rate is 10%, what is the present value of the project? (rounded to the nearest whole number) 7023 7920 8000 8023 Which of the following is false? Group of answer choices An auction is an example of consumer-consumer rivalry. Scarcity implies tradeoffs. The only resource that is available without limit is time. Economic profits consider implicit as well as explicit costs.Presto Products, recently introduced an innovative new frozen dessert maker with the following revenue and cost relation. P= 60-0.005Q MR= 60-0.01Q TC= 88,000+ 5Q+ 0.0005Q^2 MC = 5+0.001Q At what price-output combination does the firm maximize revenues and profits ?what three factors would influence your evaluation as to wheter a company's current ratio is good or bad?
- Semi-Salt Industries began its operation in 1975 and remains the only firm in the world that produces and sells commercial-grade polyglutamate. While virtually anyone with a degree in college chemistry could replicate the firm’s formula, due to the relatively high cost, Semi-Salt has decided not to apply for a patent. Despite the absence of patent protection, Semi-Salt has averaged accounting profits of 5.5 percent on investment since it began producing polyglutamate—a rate comparable to the average rate of interest that large banks paid on deposits over this period. Do you think Semi-Salt is earning monopoly profits? Why?Consider a proposal to privatize street lighting.Would this be feasible? Why or why not? Doesstreet lighting suffer from a tragedy of the commons problem?Calculate the cost of preferred stock Current assets $2,000 Net fixed assets 3,000 Total assets $5,000 Total debt $2,100 Preferred stock 250 Common stock 1,300 Retained earnings 1,350 Total common equity $2,650 Total liabilities & equity $5,000 The firm's marginal tax rate is 35%. The firm's currently outstanding 10% annual coupon rate long-term debt sells at $1,051.11. The debt matures in 7 years. Coupon interest is paid semiannually. Skye's preferred stock pays a dividend of $3.30 per share, and its preferred stock sells for $30 per share. Skye's earnings per share last year were $3.20. The common stock sells for $55.00, last year’s dividend (D0) was $2.10, and a flotation cost (i.e, f ) of 10% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 9%. The market risk premium is 5%, the risk-free rate is 6%, and Skye's beta is 1.516.