Using the following data, please determine the market's number of months supply. If your project has 500 units (of the 800 under construction,) what is your monthly anticipated capture rate? Vacant Units = 300 %3D Units Under Construction = 800 Total Estimated Annual Demand = 600
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- PATTS is deciding which of the two investments to take. Option A, total costs = $75,000,000 and the expected benefits = $95,000,000. Option B, total costs = $36,000,000 and the expected benefits = $60,000,000. Which option PATTS should choose?An aggressive investment in Industry 4.0 next-generation technology has the potential to save your company $7M if it is very successful, or $3M if it is moderately successful, but it will cost $2M if it fails. The relative risk for the project is $1.25M. The company has a risk tolerance of $1 million and has assigned a utility value of .777 based on an exponential utility function for this investment. What is the value of a safe investment that the company would just as soon choose rather than investing in the IT project? A. $2M B. $1.5M C. 52.75 D. $1.25MSunshine Smoothies Company (SSC) manufactures and distributes smoothies. It is considering the "weight loss" smoothies project. The project would require a $4 million investment outlay today The after-tax cash flows would depend on consumers’ demand. There is a 30% chance that demand will be good, and the project will produce after-tax cash flows of $2 million at the end of each year for the next 3 years. There is a 70% chance that demand will be poor, and the project will produce after-tax cash flows of $1 million at the end of each year for the next 3 years. The project is riskier than the firm's other projects, so it has a WACC of 12%. - The firm will know whether the project is success or not after receiving first year's cash flows from normal operating.. - After receiving the first year's cash flows (no matter what receive $1M or $2M in the first year), the firm will have the option to abandon the project. - If the firm decides to abandon the project, the company will no longer…
- A toy manufacturing company works on three types of models, each of which could be produced on the same machine. The detailed information is shown in the table below. The company operates 200 days per year, with two 8-hour shifts, and requires a 15% capacity cushion for each machine to allow for preventive maintenance, breakdowns, and other unforeseen circumstances. Currently they have two machines. How many additional machines will be required to fulfill the predicted annual demand? You need to show the details for calculating demand, supply, and the number of machines needed to get full credit. Job Type Model A Model B Model C Demand (units/year) 6000 4000 5000 Process time (hours/unit) .8 .75 .25 Average lot size (unites/lot) 40 100 50 Set time (hours) per lot 1.0 1.5 0.5Answer the first 3 sub parts and I will post again the problem for you to answer the second 3 sub partsChemitronix Ltd. is a microchips manufacturing company. It was found that the business is at the maturity stage, demanding some change. After rigorous research, management came up with the following decision variables.Expansion: 45% chance of gaining 1,500,00; 55% chance of losing XNew Product: 50% chance of gaining 900,000; 50% chance of losing 539740What must have been the value of expansion loss if expansion and new product will result to the same expected monetary values?