Assignment Coursera Essay Example for Free

Assignment Coursera Essay Score Explanation 6. 34 Correct 5. 00 Correct. This is where a spreadsheet comes in handy. Total 5. 00 / 5. 00 Question Explanation This is a simple IRR calculation. Drawing a time line helps. Question 3 (5 points) Austin needs to purchase a new heating/cooling system for his home. He is thinking about having a geothermal system installed, but he wants to know how long it will take to recoup the additional cost of the system. The geothermal system will cost $20,000. A conventional system will cost $7,000. Austin is eligible for a 30% tax credit to be applied immediately to the purchase. He estimates that he will save 1 ,500 per year in utility bills with the geothermal system. These cash outflows can be assumed to occur at the end of the year. The cost of capital (or interest rate) for Austin is 7%. How long will Austin have to use the system to Justify the additional expense over the conventional model? ( i. e, What is the DISCOUNTED payback period in years? Discount future cash flows before calculating payback and round to a whole year. ) Answer for Question 3 Your Answer Score 6 Correct. You discounted before calculating payback, but it still is a very myopic measure. Total Simple payback calculation, but with discounting. Question 4 (10 points) In high school Jeff often made money in the summer by mowing lawns in the neighborhood. He Just finished his freshman year of college and, after taking a Business 101 class, he has some ideas about how to scale up his lawn mowing operation. Previously, he had used his father’s push mower, but he is thinking about getting a r101ng mower tnat wlll save tlme ana allow nvm to 00 more lawns. He Touna a used, zero turn, riding mower on Craigslist for $1,200. He will also need a trailer to pull the mower behind his pickup; that will cost him an additional $600. With the new ower he can take on an additional 20 lawns per week at an average cash inflow of $20 per lawn he will receive at the end of each week. He has 14 weeks of summer in which to mow lawns. (For convenience, assume that the mower and trailer will have no value after Jeff is done with his work this summer. ) The discount rate for Jeff is 10% (Keep in mind this is an annual rate). What is the Net Present Value of the mower/trailer project? Your Answer -1147 3117 4320 3720 10. 00 Correct. You know how to set up and calculate wv’, at a weekly interval. Total 10. 00 / 10. 00 A fairly common NPV problem, with weekly compounding. Question 5 (10 points) Yassein is looking to refinance his home because rates have gone down from when he bought his house 10 years ago. He started with a 30-year fixed-rate mortgage of $288,000 at an annual rate of 6. 5%. He can now get a 20-year fixed-rate mortgage at an annual rate of 5. 5% on the remaining balance of his initial mortgage. (All loans require monthly payments. ) In order to re-flnance, Yassein will need to pay closing costs of $3,500. These costs are out of pocket and cannot be rolled into the new mortgage. How much will refinancing save Yassein? (i. e. What is the NPV of the refinancing decision? Your Answer 16467 17517 16975 Correct. This is a very common situation we all face all the time. 15463 A problem we saw last week, but I expect you to do this routinely now. It is a value generating opportunity through financing only because interest rates changed. Question 6 (10 points) Chandra has the opportunity to buy a vacant lot next to several commercial properties for $50,000. She plans to buy the property and spend another $60,000 immediately to put in a parking lot. She has talked to the local businesses and has some contracts lined up to fill the parking spaces. The profits from the ontracts will provide $25,000 per year and the contracts will last 10 years. What is the NPV of Chandra’s plan if the appropriate discount/interest rate is 10%? (Enter Just the number without the $ sign or a comma; round off decimals. ) Answer for Question 43614 Correct. You know how to calculate NPV. Questlon Explanatlon A standard NPV problem. Question 7 (10 points) This question introduces you to the concept of an annuity with growth. The formula is given on p. 3, equation (7), of the Note on Formulae, but I would encourage you to try doing it in Excel as well. (If the first cash flow is C, the next one ill be C(l+g), and so on, where g is the growth rate in cash flow). As an example, the present value of an annuity that starts one year from now at $100, and grows at 5%, with the last cash flow in year 10, when the discount rate is 7%, is $860. Confirm this before attempting the problem using both the formula and excel. What is the NPV of of a new manufacturing project that costs $100,000 today, but has a cash flow of $15,000 in year 1 that grows at 4% per year till year 12? Similar investments earn 7. 5% per year. (Enter Just the number without the $ sign or a comma; round off decimals. ) Answer for Question 7 0486 Correct. Hope you used both methods. This is a set up and calculation problem, nothing new conceptually. Question 8 (1 5 points) Diane has Just 18 and also completed high school and is wondering about the value of a college education. She is pretty good with numbers, and driven by financial considerations only, so she sits down to calculate whether it is worth the large sum of money. She knows that her first year tuition will be $12,000, due at the beginning of the year (that is, right away). Based on historical trends she estimates that tuition will rise at 6% per year for the 4 years she is in school. She also estimates that her living expense above and beyond tuition will be $8,000 per year (assume this occurs at the end of the year) for the first year and will increase $500 each year thereafter to keep up with inflation. Assignment Coursera. (2018, Oct 29).

Managing Conflict Essay Example | Topics and Well Written Essays - 750 words

Managing Conflict - Essay Example As people interact with one another, conflict inevitably develops. People very often encounter conflicts in their day to day life (Kekes, 1993, p.53). According to Boulding (1963 cited in Chou & Yeh, 2007), conflict is the involved parties’ awareness of differences and discrepancies in ideas, opinions, and ‘incompatible wishes, or irreconcilable desires.’ Conflict arises due to the individuals’ different mental framework and interests. Boulding’s definition, however, is quite striking for this implies that people with ‘irreconcilable desires’ could never reach a reconciliation to their conflict. Clearly, conflict is neither bad nor good, ‘[c]onflict just is’ (Cohen, 2008). On the other hand, conflict can be destructive or constructive depending on the involved party’s reaction or response in dealing with and managing conflict. While some conflicts can be resolved, there are others that cannot. The person’s individuality and his or her response to conflict management are two main reasons why not all conflicts can be resolved. Firstly, the individuals’ unique personality -- which includes, but not limited to, values, emotional makeup, and interests -- is a factor why conflict is difficult or cannot be resolved. According to Kekes (1993, p.55), the incompatibility of values is due to the intrinsic qualities of values. Committed political activism and solitude, for instance, are totally incompatible. The activists’ and the apolitical individuals’ ‘irreconcilable desires’ make negotiation far from possible. Secondly, the individuals’ different perspectives and responses toward conflict management affect the outcome of conflict resolution or non-resolution. Conflict management is defined as what people -- involved in the conflict -- intend to, and actually, do in order to solve or reduce such conflict (Chou & Yeh, 2007). For instance, people who prefer problem-solving or collaboration

MDCM (A) write up Case Study Example | Topics and Well Written Essays - 1250 words

MDCM (A) write up - Case Study Example Each of the company’s subsidiaries operates autonomously and so they compete on their own terms instead of as one company. It therefore means that the price that the company pays for its products is too high when compared to the competition. This is even more so with the large number of suppliers that MDCM deals with as a group. Additionally, MDCM is not obtaining time critical information that will allow it to produce and mange its operations more efficiently. Based on the information given in the case the overall strategic goals of MDCM at this time are to improve its organizational structure, improve its information systems, reduce its operational cost and gain a greater market share. This can only be done through the integration of MDCMs information systems both departmentally, regionally and worldwide. The company has recently done some major re-organizations but the root cause of the problem has not been fixed. The CFO has indicated that margins have been shrinking for eight quarters with too much working capital and an inefficient cost structure (p.1). The structure of MDCMs operation does not augur well for its efficient operations. The company has done some restructuring and has reduced its staff complement but it still needs to do a strengths, weaknesses, opportunities and threats (SWOT) analysis of its operations in order to see what additional restructuring is required. The Chief Operating Officer (COO) has indicated that because of the inability to forecast MDCM is spending almost three times as much as the company needs to spend on materials because of having to expedite the process in order to satisfy the needs of customers. Production cannot be scheduled properly because of the rush to satisfy the immediate needs of customers. All of this suggest that the company does not have the information that it needs to plan or is not getting the information early enough in order to carry out its operations efficiently. Indeed the COO has