Describe a variation of the L pattern
What will be an ideal response?
The vertical line can be slanted to the left while the horizontal line sweeps downward. Also a third line can be added to make a three-legged L pattern.
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The connection of the busway to enclosures such as unit substations is accomplished with ____.
A. ventilated steel halves B. copper busbars C. flanged end connections D. No. 1 connections
Companies traditionally offer craft-professional training _____.
a. that a supervisor leads in a classroom setting b. only in a classroom setting c. in a hands-on setting, where they learn from an experienced worker d. on a self-study basis
Mosaic Software has an opportunity to invest $10,000,000 in a new engineering remote-control system for offshore drilling platforms in partnership with two other companies. Financing for Mosaic will be split between common stock sales ($5,000,000) and a loan with an 8% per year interest rate. Mosaic’s share of the annual net cash flow is estimated to be $1,115,000 for each of the next 6 years. Mosaic is about to initiate CAPM as its common stock evaluation model. Recent analysis shows that it has a volatility rating of 1.05 and is paying a premium of 5% common stock dividend. Risk-free government bond investments are currently paying 4% per year. Is the venture financially attractive if the MARR equals (a) the cost of equity capital, and (b) the WACC? (Note: Refer to problem
10.52 for further analysis of this investment opportunity.) What will be an ideal response?
Solve the capital budgeting problem in Problem 12.21(a) using the linear programming model and a spreadsheet.
Problem 12.21
A capital-budgeting problem is defined as follows: three projects are to be evaluated at a MARR of 12.5% per year. No more than $3.0 million can be invested.
(a) Use a spreadsheet to select from the independent projects.
(b) After some study, it was determined that the life of project 3 can be increased from 5 to 8 years for the same $1 million investment; however, the estimated annual NCF would remain steady from year 5 on. Use Goal Seek to determine the NCF in year 1 and beyond for project 3 (as a bundle of one project) to have the same PW as the best bundle in part (a). All other estimates remain the same. With these new NCF and life estimates, what are the best projects for investment?
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