An Australian steel company, ASM International, claims that a savings of 40% of the cost of stainless steel threaded bar can be achieved by replacing machined threads with precision weld depositions. A U. S. manufacturer of rock bolts and grout-in-fittings plans to purchase the equipment. A mechanical engineer with the company has prepared the following estimates for additional costs and savings over the next 4 years (16 quarters). Costs decrease for some time, then increase rapidly as the equipment ages. Savings peak at $80,000 for some quarters, but then decrease as expected competition takes its toll. The U. S. manufacturer president is not sure of the time frame to plan for the use of this new technology. The decision, in part, rests upon the rate of return achievable as the years of use progress. In the past, projects must return at least 24% per year to be retained. (a) Determine the expected rate of return per quarter for 2 years (8 quarters) and beyond using a spreadsheet. (b) Plot i* versus quarter to graphically illustrate your results. (c) Make a recommendation on the number of years to use the technology to economic advantage. Quarter Cost, $ Savings, $ 0 −350,000 — 1 −50,000 10,000 2 −40,000 20,000 3 −30,000 30,000 4 −20,000 40,000 5 −10,000 50,000 6–12 0 80,000 13 −20,000 80,000 14 −40,000 40,000 15 −60,000 20,000 16 −80,000 0

What does the consumer price index measure? a. the change in prices of all goods and services over time b. the change in prices of specific goods and services over time c. the change in prices of final goods and services over time

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Alarge tank is filled to capacity with 500 gallons of pure water. brine containing 2 pounds of salt per gallon is pumped into the tank at a rate of 5 gal/min. the well-mixed solution is pumped out at the same rate. find the number a(t) of pounds of salt in the tank at time t.